The Minister for Public Enterprise, Ms O'Rourke, has indicated that CIE will get its fares increase when talks on the viability plans are concluded and public service contracts for the transport company are in place. The contracts will replace the annual subvention for running uneconomic services and CIE will be fined if it does not reach certain performance standards. This is something CIE has wanted for several years.

However, the viability plans have been in the offing for about as long as the idea of public service contracts. By all accounts the talks are arduous, involving dozens of different unions and hundreds of different issues.

CIE executives believe the talks are nearing completion. The next task is to see how the massive investment which CIE claims is necessary can be funded. CIE chairman, Mr Brian Joyce, made it clear that the group would need Exchequer aid for such investment.

There is also the key issue of customer care, on which CIE claims it is focusing. Many people are dissatisfied with the level of service offered both on rail and bus services. They claim trains are often overcrowded - especially at peak times - and early morning bus and DART services are also overcrowded. The spectre of two or three buses passing customers by because they are full is not an uncommon one.

"There is a chronic shortage of rolling stock," CIE chief executive, Mr Michael McDonnell, said yesterday.

Both he and Mr Joyce maintain that the problem on the city bus operations could be greatly alleviated if quality bus corridors (dedicated bus lanes) were put in on certain routes. Plans for this are in progress and it is expected that 11 will be in place in Dublin by the end of 1999.

There is also the issue of what rail lines are profitable and how much investment should be put in. As CIE's annual report shows, the bulk of the subvention is going to fund the railways.

A rise in fares will not be popular with the travelling public. CIE maintains it is the least subsidised travel company in Europe and, in real terms, fares have dropped since 1991 as there have been no increases.

For CIE, the importance of a rise is easily demonstrated: a 3 per cent rise would bring in an extra £12 million, and 5 per cent would add £20 million, which Mr Joyce said would be used for investment.