24.04.12
Financial difficulty ahead for Translink
Translink is expected to move into the red next year according to its next three-year plan. The group includes Metro, Ulsterbus and NI Railways.
The Department for Regional Development (DRD) analysis of the corporate plan anticipates that the company will achieve a profit of £2m in 2012-13, but will start to make significant losses with a deficit of £11.6m expected in 2013-14 and £10.5m in 2014-15.
This is due to a combination of factors, such as increasing fuel prices and wage costs, a fall in school transport income due to a drop in pupil numbers, and the increasing cost of concessionary fares.
Last week the company announced an average rise in fares of 3%.
The DRD report states: “The scale of the problem in the later two years of the plan, as projected by Translink, is significant. To achieve a balanced position in 2013-14 could mean significant fare increases beyond inflation, re-examination of Translink services and potentially other departmental funded schemes.”
These losses are expected even after assuming the DRD would provide additional in-year funding for rail services of £5m and £10m in the respective loss making years. According to the report, the level of departmental funding to Translink has been significantly cut in the current budget.
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