Written answer
Public Transport
The Minister referred the fare-demand research request to the NTA, which sets fares, citing affordability, elasticity, sustainability and reinvestment of fare revenue.
15. Deputy Richard Boyd Barrett asked the Minister for Transport to provide a full copy of the research showing the relationship between passenger fares and public transport usage recently discussed at the Transport Committee (details supplied). [67362/26]
Comment on this
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 responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
In this regard as you are aware the NTA announced changes to the national fare structure for PSO services, effective from January 2027. In line with this change, the fare determination process undertaken by the NTA takes account of factors including, operating costs, passenger affordability, Government policy, investment requirements and the long-term sustainability of the public transport network.
We understand that the NTA applies detailed statistical analysis of fare elasticity to assess the impact of fare increases on passenger demand and overall public transport usage. Notwithstanding these considerations, passenger growth is expected to continue throughout 2027, supported by the ongoing expansion and enhancement of services, which are anticipated to attract additional users and further strengthen public transport demand.
Fare revenue is a vital component to the funding model, representing 35% of total income and Higher demand also creates higher operating costs. More passengers mean more services, staff, maintenance and investment requirements.
In line with international best practice and to bolster the State’s capacity to invest in service expansion, network improvements, and operational resilience to encourage continuous passenger growth, it is essential we prioritise a reinvestment of fare revenue, ensures that we can maintain a well-funded reliable system and deliver greater long-term benefit rather than reducing fares to unsustainable levels.
In light of the NTA's responsibility in this area, I have forwarded the Deputy's question to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.