The Transport Minister says he is withholding a €36 million State subsidy for CIE until they deliver on a series of reforms.
Leo Varadkar says the money is available to Irish Rail and Dublin Bus but only if the company finds new forms of credit and secures agreement from unions on reforms.
Minister Varadkar says he cannot “in good conscience” continue to pay taxpayers money every year without these reforms.
Meanwhile bus and train fares are expected to increase from January.
The head of the National Transport Authority (NTA) says the current economic climate is the “perfect storm” for fare increases.
NTA chief Gerry Murphy had earlier dismissed reports that the government was to pull a €36 million bailout for CIE saying it was his understanding that the bailout will go ahead in the form of a loan possibly from the National Pension Reserve Fund.
But Minister Varadkar says CIE and the bus unions in particular have to come to the table and there has been little progress so far.
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