State-backed 20% fare cut ‘threatens private bus companies’

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Government’s exclusion of private companies from €300m scheme ‘unfair competition’

Bus Éireann routes benefit from the State-funded 20% fare cut. File Photograph: Dara MacDonaill/The Irish TimesA taxpayer-funded scheme to reduce State bus and rail prices by 20 per cent threatens private coach companies’ survival, according to a new report.

“The decision by Government to subsidise public transport services now places commercial operators at a significant cost disadvantage,” notes Mr Power’s report, which is due to be published on Wednesday. Last month’s fare cut applied to Dublin Bus, Irish Rail intercity services, Dart and commuter rail and Go-Ahead Ireland. April’s reductions included Bus Éireann, Local Link and online intercity rail tickets. The discounts will apply for the rest of the year.

The economist adds that this means significant numbers of passengers do not benefit from the lower fares.

 

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