He's just firing an opening shot in FG's war to privatise all public transport(and anything else they can manage). There is clearly some pressure on Ireland to shrink its rather large public sector.
Maybe any governments since the creation of the state invested meaningful money into creating a public transport network, and into proper planning and zoning to maximise PT usage, CIE wouldn't need bailing out. But the situation suits the current Minister for Transport and I suspect the DoT itself, who want to just wash their hands of the whole shebang and hand it over to the Veolias and Sercos of the world.
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