Covid-19 and State-owned companies in the Irish transport
sector
PBO Publication 33 of 2020
Key Issues
• The transport sector is one of the worst hit by the Covid-19 pandemic.
• The State has a large financial interest in the transport sector through State-owned companies.
• Many of the State-owned transport companies, including CIÉ and the Dublin Airport Authority, are
availing of the Temporary Wage Subsidy Scheme (TWSS).
• The State companies in the aviation sector will incur losses in 2020. While these companies are likely
strong enough to survive the crisis without specifically directed State support, they may well have to
reduce staff numbers and take other measures to ensure their immediate financial stability including
considering postponing capital expenditure projects.
• The aviation sector companies will likely not pay dividends to the Government until 2022 at the earliest.
These dividends were worth over €60 million in 2019.
• CIÉ, and its main subsidiaries, which were in a poor financial position prior to the crisis are likely to be
impacted extremely hard. Revenue losses from passenger fares is likely to be in the region of €200 million
in the first half of 2020. Revenue from passenger fares is likely to be significantly reduced compared to
2019 for the second half of 2020 as well. Costs may increase for example for additional services on existing
high demand routes or new safety features (e.g. Perspex screens).
• The Government has brought forward Public Service Obligation (PSO) payments to ensure the companies’
operations continue but it is likely that further subvention will be needed, notwithstanding CIÉ’s use of the TWSS
Well if all the Public Transport companies continue to get wage supports as stated above ,does that not smack of unfair competition for our community restarting our business or attempting are they attempting to buy us off cheap ?
The future of the PUP will have to be decided "based on the principles of fairness and equity" according to Deputy Political Editor of Times today, in an exert from Programme for Government !