Public-transport fares are set to remain at a reduced level next year after announcements in next week’s budget.
Minister for Transport Darragh O’Brien is said to be pushing for full retention of the temporarily lower fees, which include a 20 per cent reduction across the board, currently in place until the end of the year. There is also a 50 per cent reduction on the young adult Leap card for people aged 19-25.
There is a shortfall in funding for public transport services which the State will have to meet somehow.
The Department of Public Expenditure and Reform (DPER) is understood to be pushing back against an indefinite freeze – with one source saying there could be some adjustment upwards in the fares next year.
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A full reversal to the highest level of fares is not likely, however, with one figure saying that any increase would be “gradual and phased”.
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With the Government paring back temporary cost-of-living measures and ending once-off universal payments, negotiations are also ongoing on the waiver to fees for students sitting the junior and leaving certificates.
With tense negotiations ongoing over the allocation to the Department of Education, this and other specific items remain to be settled.
One source said there was a “big squeeze” on during the budget process this year. Senior officials believe some extra funding will be found, with strong corporation tax figures expected to pile on pressure to relent on the Coalition’s tight fiscal stance. But a VAT package covering cuts to hospitality, extension of the lower VAT on household bills and cutting the VAT rate on new apartments is expected to consume much space. One source said a rate of 9 per cent is being considered for all three.
Elsewhere, Minister for Higher Education James Lawless has lent his weight to calls to reform the research and development tax credit, also favoured by Minister for Enterprise Peter Burke.
Mr Lawless is understood to want the budget to open up collaborations between industry and academia for eligibility for the credit.
Meanwhile, Opposition parties have ramped up pressure on the Government over the anticipated lack of electricity credits for households.
In its alternative budget, Sinn Féin proposed €2.5 billion cost-of-living package including €990 million for €450 in energy credits for all households.
The Labour Party is proposing the introduction of a targeted energy income tax credit worth €400 that would cost €270 million and support more than 675,000 households.
The Social Democrats are proposing a €400 targeted energy credit for households with incomes less than €45,000.
People Before Profit want a €500 energy credit for all households to be funded by an energy levy on data centres.
The Green Party is not proposing another round of energy credits in its alternative budget proposals.
