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Minister's statement

3 September 2012

TSSA has contacted the ICTU today requesting that they seek to arrange an urgent meeting with the Minister and the unions in the CIE group in an effort to understand the terms under which an additional €36 million in subvention has been given to the CIE group.

Clarification regarding the Ministers statement “We have had to reduce funding from other areas of the Department in order to increase the subvention. This will involve cutbacks or deferrals in capital spending in the areas of sport, tourism, and other areas of public transport, smarter travel, and maritime operations. Further funding will be raised through the sale of non-core assets by CIE.


TSSA and other Unions dealing with Irish Rail have recently balloted their members and agreed to a “Cost Containment Program” which will run until 2016. Both Dublin Bus and Bus Eireann are presently in discussions with the unions for similar agreements. 

The statement “sale of non-core assets” needs to be clarified as this has the potential to diminish the operating capacity of the CIE group of companies which could lead to further cut backs and possibly reductions in staff levels.

All unions are cognise of public opinion and daily attacks from some Politician’s and the media circus. On many of today’s radio stations both national and local this issue was aired with members of the public requested to give their point of view while most were in support of the announcement, there was those members of the public who stated that the whole CIE be wound up and sold to private companies, also there was spokespersons from the private sector requesting that the CIE company be sold to tender.

TSSA is very conscience that it is vitally important that transport is protected from the threat of privatisation.

TSSA will update all members on the outcome of any such meeting. A copy of the minister full statement is also attached for your information.

See below the Ministers statement 24/07/2012


The Cabinet has today (Tuesday) agreed to increase the subvention to CIE by €36 million in order to protect public transport services.
 
Minister for Transport, Tourism & Sport Leo Varadkar along with Minister for Public & Commuter Transport, Alan Kelly have secured the support of the Cabinet in raising CIE’s 2012 subvention to €278 million, the fourth highest level ever allocated. This has been achieved by re-allocating funding within the Department of Transport, Tourism & Sport.
 
“This intervention by the Department will ensure that CIE remains adequately funded for the immediate future and can continue to provide a sufficient service to the travelling public,” Ministers Varadkar and Kelly stated.
 
“It was a hard decision, but a necessary one. CIE is lossmaking as a group and its financial position is very difficult. The company has run up a substantial debt. However, we are working on a solution.
 
“To ensure that the company is placed on a more sustainable footing we will continue to engage with the CIE Chairperson and the boards of the three CIE companies, which have already implemented wide-ranging cost reduction programmes. The Chairperson and boards will continue to negotiate with the unions and other interests to drive the cost reduction programmes.
 
“We have had to reduce funding from other areas of the Department in order to increase the subvention. This will involve cutbacks or deferrals in capital spending in the areas of sport, tourism, other areas of public transport, smarter travel, and maritime operations. Further funding will be raised through the sale of non-core assets by CIE.
 
 

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