As Minister for Transport, I fully acknowledge the growing pressure across the public transport sector and the significance of further fuel price rises, and subsequent impacts on transport operators and passengers given the recent global events and the impacts seen in fuel prices in Ireland. It is essential that we monitor these impacts to assess if they are temporary or become more long term. In this context, the Deputy will be aware of the significant package of supports recently announced including for the haulage and coach sector.
Improving the accessibility, reliability, and affordability of public transport, while ensuring the system remains well-funded and responsive to passenger needs, is a core priority under the Programme for Government. The National Transport Authority (NTA), as fare regulator for services provided under PSO contracts, plays a central role in achieving this. While my Department sets the overall policy direction and funding framework for the delivery of public transport services nationwide, it is the NTA that have the statutory responsibility for securing the provision of public passenger transport services nationally.
The Public Service Obligation (PSO) programme represents a significant expenditure of taxpayers' money, and funding has increased in recent years to cater for additional services, fare initiatives and growing demand. The Government recognises that an equitable and reliable public transport network plays a vital role in encouraging a shift away from private car use. Public transport fare policy must balance affordability for passengers with the long-term financial sustainability of the network. The PSO programme is funded through a combination of Exchequer support and fare revenue, with over €940 million allocated in Budget 2026, a 43% increase on 2025, to support service provision in line with growing demand.
Fares in Ireland remain comparatively low as there are significant reductions available to passengers across the various fare initiatives including the 20% reduction, the Young Adult Card offering a 50% discount for young adults, the 90-minute fare allowing free transfers between services. Free travel is now available for those up to age 9 years, with around 263,000 children across Ireland now eligible for this expanded travel scheme. Decisions on such initiatives are ultimately matters for Government decision in the context of available resources and broader transport policy objectives.
The Free Travel Scheme, which is administered by the Department of Social Protection, is currently available to everyone aged 66 or over, and to certain people who are under 66 in receipt of qualifying payments, or who meet the medical conditions for Blind Pension, and are legally living permanently in the State. In addition, last year saw the introduction of the free Public Services Companion Pass for individuals over 70 years of age, representing another meaningful advancement in inclusive and sustainable mobility. By enabling older citizens to travel with a companion at no additional cost, we are further supporting and encouraging the independent use of public transport options for all members of our communities.
While targeted fare measures have absolutely improved accessibility, they also increase subsidy requirements. For example, the estimated cost of making the existing 20% and 50% fare reductions permanent is between €171 million and €189 million annually. The removal of fares entirely would require a significantly higher level of ongoing Exchequer funding and would have implications for the State’s capacity to invest in service expansion, network improvements, and operational resilience.
It is essential that the public transport system remains well funded and responsive to passenger needs. The PSO programme and all its comprising elements are kept under ongoing review by the Department and the NTA, taking account of passenger demand, cost pressures, and wider economic conditions, including fuel price volatility.
Maintaining and strengthening the existing network now ensures that our high-demand services can operate effectively, while supporting longer-term reforms to enhance capacity, accessibility, and efficiency across the system. This reflects the Government’s commitment to ensuring that public transport services can continue to operate reliably and sustainably in the face of growing passenger demand and increased operational costs.