As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
In 2022, the NTA commissioned a report with Ernst & Young Business Advisory Services which examined the impacts of free fares on public transport. That report concluded that to fund a fully free public transport system at the time, without accounting for the likely increased passenger demand, would have required an additional €540m in Exchequer funding per annum at a minimum, on top of the existing annual PSO subvention. Given the increase in costs in the intervening period, this figure increased to closer to c. €786m for 2024.
The report also found that any increase in public transport demand due to free fares would largely be achieved by reductions in walking (7%) and cycling (13%), resulting in just a 1% reduction in car travel.
My Department’s funding for public transport services is therefore focussed on existing fare initiatives and service improvements such as BusConnects in the five cities, expanding town services in the larger towns, and rolling out Connecting Ireland in rural Ireland. Under Budget 2025, funding was included for the continuation of popular public transport fare initiatives including the 90-minute fare, the Young Adult/Student Leap Card, and the discounted fares on PSO services, with further provision to extend child fares to include those ages 5-8 years of age which commenced on the 3rd of September this year.
As is the case with all such Budgetary measures, decisions relating to same are a matter for Government which operates within the available fiscal parameters and the medium-term fiscal plan.
I wish to assure you that both Government and the Department remain committed to improving the accessibility, reliability, and affordability of public transport, while safeguarding the financial sustainability of the system in the long term.