I thank the Deputy for the question. As he is aware, the NTA in its capacity as fare regulator, recently announced the revised national fare structure to take effect from January 2027.
While adult fares will increase by an average of 15%, child fares are being reduced in several areas nationally. This represents the first broad adjustment to fares since 2018 and follows a period in which operating costs have risen sharply. In the Dublin commuter zone, in regional cities, in participating towns, and on TFI Local Link services, a new reduced child rate will apply, set at 33% of the equivalent adult fare rate. The determination will also continue to protect existing Government-supported fare initiatives, including the free travel scheme; free travel for children under nine years of age; and free companion travel arrangements for people over the age of 70. The NTA’s assessment is that, even with these changes, fares will remain approximately 8% lower in real terms than they were eight years ago. The adjustments to fares are required to help offset the cost increases in recent years. They are also required to improve fare revenue recovery and ensure the sustainability of the public service obligation, PSO, funding.
We recognise that the NTA applies detailed statistical analysis of fare elasticity to assess the impact of fare increases on passenger demand and overall public transport usage. Notwithstanding these considerations, steady passenger growth is expected to continue in 2027, supported by the ongoing expansion and enhancement of services, which are anticipated to attract additional users and further strengthen public transport demand. The NTA will continue to monitor patronage trends closely as the new fare structure is implemented.
Safeguarding the long-term financial sustainability while being responsive to passenger needs remains a central commitment under the programme for Government. Achieving this requires a careful balance between delivering high-quality reliable services and ensuring the network is adequately funded.