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Dáil Éireann debate -
Wednesday, 26 Oct 1960

Vol. 184 No. 1

Ceisteanna—Questions. Oral Answers. - Cross-Channel Freight Charges.

54.

asked the Minister for Transport and Power whether he proposes to take any action in regard to the recent further increase in cross-Channel charges.

55.

asked the Minister for Transport and Power if he is satisfied that the recent decision to increase cross-Channel freight charges in respect of livestock is justified; and if he will make a statement on the matter.

With the permission of the Ceann Comhairle I propose to take Questions No. 54 and No. 55 together. There is no statutory authority vested in me or in the Government by which direct control can be exercised over cross-Channel or any other shipping rates; it is in the nature of the trade that effective control of the rates cannot be unilaterally exercised by the Government here.

The Tribunal of Inquiry into cross-Channel Freight Rates which reported in May, 1959, concluded that from the standpoint of trading results in preceding years the cross-Channel shipping companies were not making excessive profits. I am aware that since then there have been increases in operating costs arising out of increases in wages and salaries and other expenditures on both sides of the Irish Sea. This has been reflected in the recent recommendation by the Road Haulage Association in Great Britain to increase road freight rates by 10 per cent. Without detailed information as to the current receipts and expenditures of the shipping companies it is not possible to form any considered conclusion as to whether the further increases in freights can be justified.

The Tribunal of Inquiry suggested that a Voluntary Committee representative of shippers as a whole should be formed under official auspices to consider problems of cross-Channel transport, particularly in connection with freight rates, to co-ordinate information on these problems and to discuss them with the Conference or with individual undertakings. In pursuance of this recommendation the National Shippers Committee was established in May, 1960, with a widely representative membership. The Federation of Irish Industries provide the secretariat, and I understand that the Committee is actively pursuing the objectives suggested by the Tribunal. The Committee in particular are in communication with the Irish and British Traffic Conference about the proposed freight increases.

Does it mean in effect that both the Commission and this new Committee are completely ineffective and that until we gain some participation in cross-Channel services, we can do nothing about it?

The National Shippers Committee have not been a very long time in operation. They have had to work out the nature of their own day-to-day investigations in regard to the freight rate position. I am quite certain they will be able to give effective help to a number of industrial and other concerns seeking ways and means of getting more economical forms of transport through the methods by which they send their goods. At the same time, the Committee will make representations to my Department if they feel there are obvious inconsistencies in regard to increases in rates.

So far as participation is concerned, that matter is still under active consideration. As I made clear in the House, when I spoke on the occasion of the Private Motion moved by the Deputy, the matter is of a very complex character, and it is very difficult to arrive at any firm conclusion in any direction.

Even if the Committee make representation to the Minister, has the Minister any power to alter rates in any way?

At the moment I have no power. I can simply draw the attention of the shipping companies to the economic needs of this country and press upon them to take reasonable account of the overtures made to them.

Does the Minister recall that the Taoiseach, when Minister for Industry and Commerce, stated in October, 1957, that discussions were going on with a view to some form of participation in cross-Channel shipping services? Has nothing been done in that regard?

The Deputy will be aware that since that period there has been a very radical change in the character of traffic across the Irish Sea. The container ban has been in operation, but it had been hoped by everybody concerned that the ban would have been lifted by now. If it had been, there would again be a very definite change in the pattern of transport. A number of changes have taken place, all of which would require to be studied. At the same time the Deputy will be aware that an independent container service has been started and that there has been a gradual change in the pattern of traffic. Container services are being operated in increasing measure from Waterford and Rosslare. Because of the changing character of the traffic, it is taking a considerable time to arrive at a point where decisions can be made. However, I think I can tell the Deputy that there will not be avoidable delay.

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