2017 2018 2019 2020 2021 Additional Funding Required: €m €m €m €m €m Infrastructure Manager Gap in funding to keep infrastructure at "Steady State" levels (per AECOM analysis for RAIL Review 2016) 64.2 64.1 64.0 63.7 63.7 Railway Undertaking Gap between cost of operations and combined revenues from fares and PSO subsidy 38.7 27.2 21.7 13.7 8.2 Unfunded Capital Urgent Growth Measures (Additional - 25.4 27.4 16.0 18.7 Total Additional Funding 102.9 116.7 113.1 93.4 90.6 Average Estimated Funding Gap per €103m 4.3 Funding gap In the six years to 2014, Iarnród Éireann reduced its cost base by (17.3%) and its workforce by €73m 1,073 (22%). In the same time period services were maintained and in some instances enhanced and network size expanded with new line openings, driving an improved efficiency factor year on year. Over the same period, there was a reduction on PSO funding by (39%). €74m For the future, measures set out in the Rail Review (DART re-launch and better service matching) should contribute additional revenue per annum. Iarnród Éireann is targeting further savings from 2017 onwards through further general efficiencies. These together would not, however, be sufficient to bridge the funding gap, contributing only a small proportion of the required €103m. If Exchequer grants had to be increased to eliminate the funding gap this would require Government to provide an additional to ensure solvency and adequately maintain the assets. €103m 4.4 Budget 2017 Since the 2016 Rail Review was completed, the Government has published the budget for 2017 expenditure. Additional funding has been allocated by the Government in terms of PSO subvention and capital funding for heavy rail. Therefore the NTA should be in a position to meet most of the Railway Undertaking requirements in 2017 including funding the Fleet Heavy Maintenance. An additional amount is also being made available by the Department for the MAC contract which will allow for increased investment in maintenance and renewal of the network and additional funding for safety projects. Therefore the overall gap in funding for Iarnród Éireann has been reduced by approximately in €50m 2017. Funding for 2018 onwards will be considered in 2017 in the context of the Government’s forthcoming reviews of both current and capital expenditure.
Additional Funding Required: 2017 €m 2018 €m 2019 €m 2020 €m 2021 €m Infrastructure Manager Gap in funding to keep infrastructure at "Steady State" levels (per AECOM analysis for RAIL Review 2016) 64.2 64.1 64.0 63.7 63.7 Railway Undertaking Gap between cost of operations and combined revenues from fares and PSO subsidy 38.7 27.2 21.7 13.7 8.2 Unfunded Capital Urgent Growth Measures (Additional - 25.4 27.4 16.0 18.7 Total Additional Funding 102.9 116.7 113.1 93.4 90.6 Average Estimated Funding Gap €103m per 4.3 Funding gap In the six years to 2014, Iarnród Éireann reduced its cost base by €73m (17.3%) and its workforce by 1,073 (22%). In the same time period services were maintained and in some instances enhanced and network size expanded with new line openings, driving an improved efficiency factor year on year. Over the same period, there was a reduction on PSO funding by €74m (39%). For the future, measures set out in the Rail Review (DART re-launch and better service matching) should contribute additional revenue per annum. Iarnród Éireann is targeting further savings from 2017 onwards through further general efficiencies. These together would not, however, be sufficient to bridge the funding gap, contributing only a small proportion of the required €103m. If Exchequer grants had to be increased to eliminate the funding gap this would require Government to provide an additional €103m to ensure solvency and adequately maintain the assets. 4.4 Budget 2017 Since the 2016 Rail Review was completed, the Government has published the budget for 2017 expenditure. Additional funding has been allocated by the Government in terms of PSO subvention and capital funding for heavy rail. Therefore the NTA should be in a position to meet most of the Railway Undertaking requirements in 2017 including funding the Fleet Heavy Maintenance. An additional amount is also being made available by the Department for the MAC contract which will allow for increased investment in maintenance and renewal of the network and additional funding for safety projects. Therefore the overall gap in funding for Iarnród Éireann has been reduced by approximately €50m in 2017. Funding for 2018 onwards will be considered in 2017 in the context of the Government’s forthcoming reviews of both current and capital expenditure.
2016_Rail_Review_Consultation.docx