Public Transport Commuters Abandoned by Government in Budget 2027
Public Transport Commuters Abandoned by Government in Budget 2027 - The Labour Party
Responding to transport measures announced as part of Budget 2027, Labour’s Transport Spokesperson Ciarán Ahern TD has said that public transport users will feel let down by the Government’s failure to prevent the fare increases coming this January.
Deputy Ahern said:
“Government have been able to find almost €1.2 billion to cut excise duty on petrol and diesel so far for people who drive to work and today they announced a further €73 million to extend fuel supports for the haulage sector. Obviously at a time of soaring fuel prices these sorts of interventions are necessary, but commuters using public transport have every right to ask why they don’t deserve similar supports.
“This is a cohort who are helping us to reduce congestion on our roads, reduce our emissions and, ultimately, reduce costs on taxpayers in the long-run. Why are public transport users being punished for doing the right thing? It is baffling to me that at a time when we should be encouraging people to use public transport if it’s available to them that the Government wouldn’t provide the funding the NTA says it needs to prevent these fare hikes from going ahead. The NTA themselves have said that they anticipate a reduction in public transport use as a result of fare increases.
“The dividends from public transport investment don’t come just in terms of the social good or from a climate perspective. There’s an economic case too. Every euro invested in public transport generates four euro for the domestic economy. It makes no sense for the Government to make it more difficult to take a bus or a train.
“The Government’s inaction on these fare hikes will disproportionately hit people on lower incomes at a time when they’re going out of its way to spend money to protect hauliers and those who can afford to drive. People on low-wages, students, older people and those with a disability will be hit hardest. These are the same cohorts that are already at the sharp end of the cost-of-living crisis. It’s an utterly regressive step.
“Fianna Fáil and Fine Gael have made a big play in this year’s budget about slashing income tax, but half the gains that middle income earners who rely on public transport to get to work each week get from these cuts will be eaten up by fare increases come January. For public transport users, the income tax cuts that Government have announced are a work of fiction.”
Deputy Ahern added:
“The most frustrating aspect is the short-termism we’re seeing from Government. They don’t appear to recognise the urgency with which we need to decarbonise our transport sector. It’s the second-highest emitting sector of our economy. We’re never going to achieve that aim if Government is on the one hand providing fossil fuel subsidies and on the other making it harder for people to use sustainable transport.
“The Labour Party supports the measures taken on fuel prices to help people who have no alternative but to use petrol or diesel while prices are so high. The longer-term solution though has to be making public transport and active travel more accessible for more people, and crucially, keeping it affordable. That is the best way to protect people from high fuel costs. By failing to provide the necessary funding to stop public transport fare hikes going ahead, the Government is actively choosing to prolong our dependence on fossil fuels.
“To add insult to injury, the active travel budget remains static once again. This effectively amounts to a cut in funding. Since 2020, there has been a 22% reduction in active travel funding when accounting for inflation. Instead, the Government has doubled-down on their policy of building more roads, inducing more demand, and pushing us further and further away from meeting our climate targets.
“Time and again, Fianna Fáil and Fine Gael have shown us that they have no real interest in ending Ireland’s reliance on fossil fuels. They have shown no leadership on the climate issue. Ultimately, their failure to ensure that public transport and active travel are accessible and affordable is costing households by leaving us exposed to volatile fossil fuel markets. Budget 2027 has given no indication that that will change.”