Dáil Éireann Debate, Tuesday - 29 September 2026
290. Deputy Ken O'Flynn asked the Minister for Transport the amount the National Transport Authority has estimated would be required in 2027 to maintain public service obligation fares at 2026 levels; whether the Department has sought that amount in the Budget 2027 Estimates process; and if the Minister will make a statement on the matter. [68779/26]
Amharc ar fhreagraAs a Minister of transport, I have responsibility for over all funding and policy framework. However, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
On 3rd September 2026, the National Transport Authority (NTA) announced changes to the national fare structure for PSO services, effective from January 2027. These changes are the first major revision since 2018 forming part of the NTA’s National Fare Strategy. While adult fares will increase, many child fares will be reduced and young adult fares will remain discounted at 50%, helping to improve affordability for families and young people. The Free Travel Scheme, which is run separately by the Department for Social Protection, will continue for everyone eligible
The NTA has identified approximately 140 new service initiatives and capacity enhancements as part of its 2027 budget submission to the Department of Transport. Subject to the outcome of the annual estimates process, this represents the biggest enhancement of services in many years.
The adjustments to fares are required to help offset the cost increases in recent years, improve fare revenue recovery and ensure the sustainability of the PSO funding while ensuring public transport is affordable and accessible for commuters.
The additional revenue generated through this determination together with continued Exchequer investment, will help the NTA manage rising operating costs, improve capacity and reliability on existing services, and continue the rollout of new services. This includes investment in BusConnects in Dublin, Cork and other cities, the completion of the Connecting Ireland Rural Mobility Programme, and continued development of commuter rail services to increase the connectivity outside our major cities and towns. Within its allocated resources, the NTA will continue to prioritise operational enhancements, such as increased frequency or capacity improvements, where possible.
On an overall basis, fare revenue covers approximately only 38% of the cost of operating PSO services nationally, with the remaining costs funded by the Exchequer. It is therefore imperative that there is a rebalancing of the critical equation in how we fund PSO public transport nationally, ensuring that fare revenue continues to make a sustainable contribution alongside significant levels of subsidy, while maintaining the affordability and accessibility of public transport. I would also highlight that this level of fare recovery is largely consistent with European averages, with our actual fares set at much lower rates.
In light of the NTA’s responsibility in this area, I have forwarded the Deputy's request to the NTA for further information and direct reply. Please advise my private office if you do not receive a response within ten working days.
