andMr. Breslin asked the Minister for Transport and Power if he is aware of the serious discrepancy in Donegal transport rates, passenger and freight, in comparison with the rest of the country; and if he has any plans to make Donegal transport competitive.
Ceisteanna—Questions. Oral Answers. - Donegal Transport Rates.
12.
Road passenger services in the southern part of County Donegal are provided by CIE at normal CIE fares. The northern part of the county is catered for by the Londonderry and Lough Swilly Railway Company which is one of 33 private bus companies operating local services in different parts of the country. The fares charged by these private companies while subject to price legislation vary from place to place according to the economics of their service areas. I do not propose to alter these arrangements. I am of course aware that CIE have been able to reduce their fares by virtue of the special subsidy provided for this purpose in the June, 1975 budget. No such subsidy was provided for private bus companies and, in this connection, I would refer the Deputies to the replies by the Minister for Finance to questions on this subject on 29th October, 1975, and to my reply to a similar question on 6th November, 1975.
Freight services in County Donegal are provided as in the rest of the country by CIE and private operators and I am not aware of serious discrepancies in the freight rates in County Donegal compared with the rest of the country. CIE have informed me that they do not discriminate against County Donegal in their freight charging structure. CIE have always been conscious of the needs of areas such as Donegal and have consistently sought to ensure adequacy of services at the lowest possible cost. For instance, rail freight traffic which is carried by CIE between Dublin and Derry for County Donegal is afforded the most favourable rates possible. The concessionary charging arrangements for sundries traffic to Dublin which were introduced by CIE in February, 1973, afforded particular benefits to the more remote areas, including County Donegal.
One of the most needed incentives in the west of Ireland is subsidised transport due to the fact that transport lines are so extended. The Minister admitted that the Lough Swilly Railway Company do not enjoy a subsidy as does CIE and this leaves that part of Donegal in a most disadvantaged position. I am surprised that the Minister is not prepared to take any action and I would ask him in relation to his answer to Question No. 10—on which I did not wish to anticipate his answer to this question—would he not consider it now as a matter of some urgency that an alternative means of transport be examined which would provide an outlet from Donegal, namely, the development of one or other of the excellent sea ports such as Killybegs or Rathmullen which have not the necessary transit sheds and other facilities which would encourage their use for shipping?
The Deputy is raising another matter.
I am asking the Minister, in relation to his reply to Question No. 10 in the course of which he did not seem to consider there was any necessity for urgency with regard to the development of a sea port in the north-west, if in view of the serious disadvantage we are suffering in regard to extended lines of transport he would consider this urgently? It is a serious matter particularly in relation to the Lough Swilly Railway Company who do not enjoy the advantage of a subsidy.
CIE do not enjoy the advantage of a subsidy either in regard to freight rates. They are ad idem in that regard. Under an EEC directive I cannot subsidise CIE road freight and I will not do it.
Does the Minister not consider that there should be any subsidisation of transport to the west at all?
There is a partial subsidy inasmuch as more remote areas get the benefit of the fares structure of CIE that gives a fixed rate to bulk carriers throughout their network. Therefore, the further CIE have to carry anything the more advantage it is to the people at the other end. For instance, a bulk load of cement coming from Drogheda to Dublin is charged at the same per ton rate as that cargo of cement going to Donegal.
Would the Minister agree that one of the greatest impediments to the industrial development of the west is the transport charges which compare unfavourably with the rest of the country?
I do not agree.
Is the Minister aware that an IDA grant given to a factory on the western seaboard is completely eroded in the course of a few years as a result of extra transport charges and that this militates against decentralisation of industry?
I do not agree. For the bulk carriage of goods CIE quote a constant price throughout the country so that the IDA grants are not eroded.
Taking distance into account?
In my view, the biggest incentive to attracting industry to the west is the IDA grant. These grants are, and have been, the most important incentive and have been very productive.
The Minister, and his colleague, the Minister for Industry and Commerce, must be aware that in relation to any potential project for the west a small calculation will show that the extra transport charges as compared with those for an industry on the east or south coast would erode any grant they would receive.
I do not agree. If this was so the IDA, through the Minister for Industry and Commerce, would be approaching my Department, or the Department of Finance, for a subsidised transport rate. To the best of my knowledge they have not done this. If it was a serious deterrent to industrialists going to the west the IDA would have done something about it.
Is the Minister saying he is not aware of any demand for a more advantageous freight rate for the western seaboard?
I am passing to the next question; I have given the Deputy a lot of latitude.
Surely the Minister agrees that it is time we set up a board to inquire into this.
Question No. 13 postponed.