CIÉ has reported a €4 million deficit for 2003 despite record levels of public transport usage, the company's annual report discloses.
The company, which is made up of Iarnród Éireann, Dublin Bus and Bus Éireann, saw its annual deficit rise from €3.6 million in 2002 to €4 million last year. This was after receiving an annual State subsidy of €262 million.
Costs at the company rose significantly in 2003, mainly due to a one-off restructuring charge of €20 million at Iarnród Éireann, which was used to pay for a voluntary severance programme. Non-payroll costs were up to €430 million from €418 million.
Payroll costs were up from €478 million to €493 million, mainly due to pay awards made under Sustaining Progress and the one-off restructuring charge.
The State subsidy at €262 million was up €9.8 million from 2002. The report discloses that the Government also invested €282 million in capital expenditure at CIÉ.
Of the three companies, Iarnród Éireann incurred the largest deficit at €19.4 million, although this was partially explained by the restructuring charge. This €19.4 million deficit was down from €22.5 million in 2002. The company pointed out that without the restructuring charge, Iarnród Éireann would have had a surplus of €700,000.
Bus Éireann reported a surplus of €1.5 million in 2003, compared with a deficit of €9.4 million in 2002. In 2003 the company received a State subsidy of €22.9 million. The company pointed out that slower traffic flows in Ireland increased the cost of providing services.
Dublin Bus received a State subsidy, known as a public service obligation (PSO) of €54 million, which represented 25 per cent of the company's operating costs. It said this was one of the lowest subsidy levels given to any public transport company in Europe. The company's surplus almost doubled to €7.3 million.
The Minister for Transport, Mr Brennan, has pledged to dissolve the CIÉ holding company, which reported a surplus of €6.5 million for the year. The holding company has responsibility for property transactions, CIÉ Tours and various advertising activities.