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| David Strahan warns Translink 'could go out of business' | David Strahan warns Translink 'could go out of business' |
| (about 17 hours later) | |
| The chief executive of transport firm Translink has warned it could go out of existence unless it increases fares again or makes cuts to services. | The chief executive of transport firm Translink has warned it could go out of existence unless it increases fares again or makes cuts to services. |
| David Strahan was addressing the Regional Development Committee at Stormont. | David Strahan was addressing the Regional Development Committee at Stormont. |
| Meanwhile, MLAs were briefed on redundancy proposals for Translink on Wednesday. | Meanwhile, MLAs were briefed on redundancy proposals for Translink on Wednesday. |
| The company confirmed it is considering around 150 redundancies as part of new cost-saving measures. | The company confirmed it is considering around 150 redundancies as part of new cost-saving measures. |
| The plan is for it to be a "voluntary exit" scheme. | The plan is for it to be a "voluntary exit" scheme. |
| It has also emerged that Translink estimates a loss of £14m in 2014-15 and that it wanted an (average) 10% rise in fares this year, but the minister responsible opted for less than 5%. | It has also emerged that Translink estimates a loss of £14m in 2014-15 and that it wanted an (average) 10% rise in fares this year, but the minister responsible opted for less than 5%. |
| Final details of cost-cutting, and the effect on the number of bus and rail services, have yet to be agreed. | Final details of cost-cutting, and the effect on the number of bus and rail services, have yet to be agreed. |
| In February, fare increases of about 4% came in to effect on bus and rail journeys in Northern Ireland. | In February, fare increases of about 4% came in to effect on bus and rail journeys in Northern Ireland. |
| However, Mr Strahan said due to further cuts in the 2015/16 budget, further fare increases of up to 10% could be needed. | However, Mr Strahan said due to further cuts in the 2015/16 budget, further fare increases of up to 10% could be needed. |
| "If we do not take action Translink is not a sustainable organisation and it will not be here in the future," Mr Strahan said. | "If we do not take action Translink is not a sustainable organisation and it will not be here in the future," Mr Strahan said. |
| "No-one wants to see a fare increase, that's not why I joined Translink, no-one wants to see anyone lose their job. | "No-one wants to see a fare increase, that's not why I joined Translink, no-one wants to see anyone lose their job. |
| "However, the result of the funding reductions we're facing is that we have to take action. | "However, the result of the funding reductions we're facing is that we have to take action. |
| "Ultimately it will be for the minister to decide where it falls in terms of fare increase vis a vis service optimisation." | "Ultimately it will be for the minister to decide where it falls in terms of fare increase vis a vis service optimisation." |
| Services cancelled | Services cancelled |
| Earlier, a union said it had seen a leaked Translink document proposing the cancellation of 20 town bus services. | Earlier, a union said it had seen a leaked Translink document proposing the cancellation of 20 town bus services. |
| It follows a warning from Regional Development Minister Danny Kennedy about the impact of savings of £60m he has to make. | It follows a warning from Regional Development Minister Danny Kennedy about the impact of savings of £60m he has to make. |
| He said cuts to next year's budget would mean his department would not have enough money to fund basic services like traffic light repairs. Translink will also face major cuts. | He said cuts to next year's budget would mean his department would not have enough money to fund basic services like traffic light repairs. Translink will also face major cuts. |
| The Unite's Davy McMurray said an internal Translink briefing document stated that 20 local town services would be cancelled. | |
| He said the document also said schedules would be reduced on the rail line and Belfast's Metro service. | He said the document also said schedules would be reduced on the rail line and Belfast's Metro service. |
| "Instead of a bus coming every 15 minutes or a train every 20, it'll be every half an hour or every three quarters of an hour," he added. | "Instead of a bus coming every 15 minutes or a train every 20, it'll be every half an hour or every three quarters of an hour," he added. |
| "We reckon that from bus drivers, train drivers and engineering staff, you could be looking at 200 jobs going." | "We reckon that from bus drivers, train drivers and engineering staff, you could be looking at 200 jobs going." |
| 'Hardest hit' | 'Hardest hit' |
| On Wednesday, Mr Kennedy said transport was "most likely" to be hardest hit by the cuts. | On Wednesday, Mr Kennedy said transport was "most likely" to be hardest hit by the cuts. |
| "You simply cannot cut to the level of £60m and expect to maintain all frontline core services," he said. | "You simply cannot cut to the level of £60m and expect to maintain all frontline core services," he said. |
| "My department will be working and will continue to work with the service providers to explore ways of ensuring that we provide as much service in a cost efficient manner and to seek to minimise the impact on the end user." | "My department will be working and will continue to work with the service providers to explore ways of ensuring that we provide as much service in a cost efficient manner and to seek to minimise the impact on the end user." |
| In a statement, Translink said: "As a consequence of the reduction in government funding of 2015/16, Translink is considering measures that would need to be taken to adapt to these cuts and their associated impact. | In a statement, Translink said: "As a consequence of the reduction in government funding of 2015/16, Translink is considering measures that would need to be taken to adapt to these cuts and their associated impact. |
| "As part of this, we are currently reviewing how we can best design our network to work within our allocated resources while protecting the routes most important to our customers. | "As part of this, we are currently reviewing how we can best design our network to work within our allocated resources while protecting the routes most important to our customers. |
| "No decisions have been taken at this stage over 2015/16 service efficiencies and we will engage with local stakeholders should any local service changes be proposed." | "No decisions have been taken at this stage over 2015/16 service efficiencies and we will engage with local stakeholders should any local service changes be proposed." |