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class="MsoNormal">A further €36 million is to be pumped into CIE to protect Irish public transport services.

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class="MsoNormal"> lang="EN-IE">The decision by Cabinet will raise the subvention by CIE this year to €278 million.

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class="MsoNormal"> lang="EN-IE">That is the 4th-highest allocation ever.

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class="MsoNormal"> lang="EN-IE">Transport Minister Leo Varadkar and Public Transport Minister Alan Kelly say the intervention roday will ensure CIE remains adequately funded for the immediate future and can continue to provide sufficient service to the travelling public.

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class="MsoNormal"> lang="EN-IE">“It was a hard decision, but a necessary one. CIE is lossmaking as a group and its financial position is very difficult. The company has run up a substantial debt. However, we are working on a solution” Ministers Varadkar and Kelly stated.

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class="MsoNormal"> lang="EN-IE">“To ensure that the company is placed on a more sustainable footing we will continue to engage with the CIE Chairperson and the boards of the three CIE companies, which have already implemented wide-ranging cost reduction programmes” they added.

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class="MsoNormal"> lang="EN-IE">The two Ministers also say they have had to reduce funding from other areas of the Department in order to increase the subvention.

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class="MsoNormal"> lang="EN-IE">They add that this will involve cutbacks or deferrals in capital spending in the areas of sport, tourism and other areas of public transport.

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class="MsoNormal"> lang="EN-IE">In a statement they conclude that the CIE financial position has deteriorated as a result of falling passenger numbers and rising fuel costs.