I thank the Deputies for submitting this Topical Issue, which I am taking on behalf of the Minister for Transport, Deputy O'Brien.
The Minister has responsibility for policy and overall funding of public transport, but neither he nor his officials are involved in the day-to-day operation of public transport services. The NTA has statutory responsibility for securing the provision of public passenger transport services nationally, working with the public transport operators, who deliver the services and have responsibility for day-to-day operational matters. The NTA also 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 its capacity as fare regulator, the NTA under its responsibilities within the Dublin Transport Authority Act 2008 made the decision to publish a new fares determination on 3 September 2026, with the revised fares taking effect from January 2027. This is a critical step in standardisation of the national fares structure and in line with the national fares strategy that was published in 2023 with the key objective of the strategy providing more equitable and consistent structure for all PSO services.
Since 2022, we have seen inflation of almost 21%, which has driven up the cost of operating subsidised public transport services with fuel, vehicle maintenance and staff costs. In the same period, public transport fares have decreased through various measures such as the 20% cost-of-living discount, the young adult card discount of 50% and the extension of free travel to children under the age of nine. This has widened the gap between what it costs to run services and the revenue fares bring in. All the while, the NTA is seeking to continue with a significant expansion and enhancement of services. There is a requirement to strike the right balance in public transport fares to enable further enhancements to the public transport network in the coming years, offer the most competitive fares to younger and student passengers and ensure value for money of the PSO subsidy to society.
Fare revenue covers approximately 38% of the cost of operating PSO services nationally, compared to a 44% European average, with the remaining costs funded by the Exchequer. While 2026 saw a substantial increase in Exchequer funding, continued inflationary pressures have increased the cost of operating public transport services, which has limited the NTA’s ability to improve services or introduce new services to the Transport for Ireland network as part of wider capital investment under the national development plan. Ireland has maintained an effective eight-year fare freeze alongside targeted affordability measures, including the young adult card, free travel for children up to nine, and the 90-minute fare. These measures compare favourably with international practice and will continue to provide substantial support to passengers in 2027.
The adjustments to fares are required to help offset the cost increases of recent years, improve fare revenue recovery and ensure the sustainability of the PSO funding. It is important to note that every euro raised through fares goes directly back into the network, supporting better reliability, frequency and capacity and the continued roll-out of BusConnects, Connecting Ireland and DART+. I have no doubt the Deputies will understand that maintaining affordable fares must be balanced with ensuring a financially sustainable transport system capable of funding service improvements, network expansion and fleet investment.