I welcome the Bill. I listened to Deputy Skelly and he placed a lot of emphasis on drunken driving. If more people were jailed for drunken driving, there would be less crime.
The broad objective of this Bill is to liberalise road transport and to remove restrictions on those offering transport services. The Bill is necessary because road transport now involves about 97 per cent of the total tonnage moved in Ireland. When the late Mr. Seán Lemass was in charge of industry he introduced legislation to protect the railway system. This put less emphasis on road transport. That legislation involved strict limits on the carrying of goods. In the late fifties and sixties there was a massive increase in industrialisation and the rail system was found not to be modern enough to cater for the new growth. We had embarked on a whole new era of containerisation, refrigeration and so on, and that involved a problem for the rail system. Consequently, the legislation was changed to allow manufacturers carry their own goods. In the mid-sixties this involved more than 80 per cent of road transport and economically that was wasteful.
In 1978 the Government permitted licence holders to increase their quotas and in 1981 the Transport Consultative Commission recommended that anyone who could satisfy the quality standards should be allowed carry goods. That was a welcome change. The recommendations of that commission are incorporated in this Bill in terms of liberalising the law. While the proposed measures are necessary I have some reservations as to the benefits of the new legislation, if there is not adequate provision to have the regulations enforced strictly. This begs the question as to whether we have a sufficient number of trained gardaí or other personnel to enforce the regulations. However, the Bill is welcome because up to now too much transportation of goods has been undertaken by manufacturers on their own-account. It should be possible for them to hire good transport operators and this situation can only come about if the Government allow that development to take place. There are too many own-account hauliers on the road. Any change which will restrict transport to those who can satisfy quality and skill standards can be only an improvement.
The future of our economy depends on increased exports and in that regard we need a good, effective and efficient road transport system. In the thirties and forties we catered mainly for the same market but now there must be an expansion of exports if we are to create jobs.
Road structure is one of our greatest problems. At today's cost the amount involved in acquiring a tractor unit and all the various equipment that would go with that for haulage purposes is in the region of £200,000. It is well known that a truck or a tractor unit in other countries such as the UK would be still roadworthy with a mileage of 200,000 whereas the comparative mileage here is about 80,000 miles. This is because of our road structure and network but it is an aspect that is imposing an intolerable burden on industrial transport generally. Consequently, it is an area that must be tackled before we can have an efficient and modern transport service.
In terms of cost effectiveness, transport absorbs 12 per cent of manufacturing costs, a higher percentage than is the case in other European countries. This cost could be reduced by introducing a reliable and appropriate transport service. In the past legislation permitted companies to lease trucks because this was not considered tantamount to becoming involved in haulage for reward. The result was that companies were forced to spend more than was necessary. The new Bill provides for the leasing and hiring of vehicles. This is a helpful measure.
Section 9 is very relevant and important. We all appreciate the volume of working capital that is required. It is not easy for the ordinary man in the street today to provide the type of capital funding that would be necessary to purchase haulage equipment whereas a leasing or hire purchase arrangement can be very helpful in the starting up of a haulage business. In addition, it has other attractions such as tax reliefs and so on. It may provide that extra leeway to invest in better equipment and to keep this equipment serviced properly. In the past, considerable time, money and effort were wasted when operators were forced by law into completing a round trip with the vehicles unloaded for one half of the journey. Permitting a licensed holder to carry for reward in addition to his own account is a measure designed to encourage a more cohesive transport system and to reduce the cost to the consumer. Under utilised own-account transport has been a serious threat to our transport system, the milk sector and the public service sector. In my area, which is a strong agricultural area, there is very heavy transport. We have the co-operatives and the creamery business and from now until September milk supply will be at a peak. Then we will go into the grain season. That is the time too, when there will be heavy haulage of beet.
This Bill will help people involved in these areas to avail of hired transport instead of depending solely on their own transport. This should result also in reducing the costs by reason of the maximum utilisation of trucks. I should like the Minister to clarify the position in respect of livestock haulage. A substantial amount of our cattle livestock is carried by modern transport and much of this haulage is carried out by self-owned haulage vehicles. Is there anything in the Bill that will interfere with that practice?
I have some reservations about the Bill. One of the concerns of the carriers is that they will be faced with unrealistic competition from hauliers who will be allowed operate free in any area, hauliers from Northern Ireland, for example, who would tend to have better access to cheaper fuel. Our fuel costs are prohibitive. From this side of the House we have been appealing for a number of years for a more realistic taxation on fuel which is a major component cost of haulage. If we are to be able to compete with our Northern brethren our costs in terms of fuel most be realistic. In addition, our insurance costs are outrageous in terms of people, hauliers or others, owing mechanically propelled vehicles. This element too, makes our competitive ability with the Northern people very poor. Again, in the area of income tax and corporation tax we are being very much out-priced. A much more favourable climate is required in this regard. This whole area must be tackled and we must take some corrective action to make our people as competitive as those from across the Border. There has been little control over the Northern hauliers who come down here and drive at reckless speeds. I have experience of travelling along our roads and seeing Northern hauliers passing one another at reckless speeds. I hope this Bill will help to prevent that.
When our haulage people travel to the Continent it is known that their trucks are often impounded at the point of entry, although we would class them as being in immaculate condition, due perhaps to a cut in a tyre or some small blemish. It is possible to travel along our roads without such actions being taken. The same strict regulations should apply to people who haul into this island as our people have suffered while hauling on the Continent. Due to a very small problem with a truck an Irish driver was practically landed in jail because he was unable to pay a fine. That proves the seriousness with which people abroad take the haulage business.
More people will probably opt out of transporting their own goods and this will create a greater market for licensed hauliers. I referred earlier to the seasonality of the agricultural business and the hauling of various types of produce. Cooperatives and other organisations will be less dependent on their own transport and this will create more competition among licensed hauliers.
Undoubtedly one of the most serious aspects is enforcement of the law. There has been considerable illegal haulage in the black economy. These hauliers have no licence, employ people who are technically unemployed, use red diesel and operate badly maintained trucks which they overload. They also have trucks with poor lighting and often use inexperienced drivers who drive at excessive speeds. All these things have been mentioned by Deputy Skelly. Overloading is very serious because of the damage caused to our road structure and bridges, which has to be paid for by the local authorities. It is very important that overloading should be stamped out. Many of our county roads are not able to take heavy articulated vehicles. Poor lighting is another hazard, as is speeding, and the laws will have to be strictly enforced. There should be some kind of control to prevent trucks from travelling above a certain speed. I understand there is an instrument available which can be fitted to mechanically propelled vehicles to prevent them exceeding the legal limit. I urge the Minister to consider making the fitting of this instrument obligatory.
The black economy is flourishing in our society. We all know of late night deliveries by people involved in that economy and I hope this Bill will do something to stamp out this blatant practice. If these illegal practices are allowed to continue there is no incentive to the man who has a licence and does his job properly.
All our roads, with the exception of those which have been rebuilt in recent years, are in a very bad condition. Our most important route, the Cork-Dublin road, is hazardous in many areas. Generally standards have tended to be poor.
If this Bill is to liberalise transport, there must also be a system of control and enforcement to guarantee fair and equitable access to the market. I welcome the proposed setting up of an inspectorate and I hope it will have suitable teeth to enforce the regulations and ensure that vehicles and drivers meet the necessary standards. Specialist gardaí will have to get training for their task. I have had some experience of truck driving and it can be difficult and frightening at the beginning. The inspectors will possibly carry out spot inspections but generally they will not be driving the trucks. A course should be held on an annual basis to keep them up to date with technological changes in the manufacture of trucks, modern gear boxes etc.
It is essential that the Bill should be complemented by policing throughout the country in order to protect the licensed hauliers and the general public. Hauliers of good repute must have access to the transport industry. They should be of good financial standing and possibly there should be a bonding system. They should also hold a certificate of competency and perhaps there should be a period of apprenticeship. Many haulage companies are family owned and there may be some kind of unofficial apprenticeship when a son begins to take part in the business. However, the theory as well as the practice is very important and some kind of course should be held. As in the case of other trades, there should be a period of training. Perhaps a single authority or council might be set up where members could meet together to discuss all aspects of the trade and maintain control of standards and services.
Finally, I welcome the Bill because it regularises licensed haulage and helps business by encouraging the growth of haulage. If we can get people out of their own transport businesses and into haulage it will help that whole area. It would cut costs in industry. It would provide more cost effective transport. Section 9 allows for the leasing of vehicles which is very relevant when there is a shortage of capital. With leasing and attractive hire purchase terms better equipment can be purchased. This Bill is essential in order to tighten the regulations which already exist and to enforce quantitative regulations to meet the needs of hauliers in the manufacturing industry and in Irish industry generally.