All Deputies who contributed to the debate on 13 March 1986 stressed the importance of better enforcement of the law in relation to the road haulage industry. In my closing remarks on that day I expressed the hope that the enforcement provisions which I will be proposing for inclusion in the Bill on Committee Stage will result in a significant improvement in the level of enforcement of the laws impinging on road haulage and bus transport. We will be discussing these provisions in detail on Committee Stage.
At this point I want to say that I intend to have the proposed arrangements which, of course, will supplement normal Garda enforcement activities, vigorously applied with a view to securing maximum compliance. The new enforcement measures will be operated in co-operation with the Garda Síochána and it will be possible to have unified enforcement in the functional area of the Department of the Environment who are responsible for legislation relating to roadworthiness and weights of vehicles, road tax and insurance, speed limits, etc., and the Department of Labour, who have responsibility in relation to the carriage of dangerous substances, as well as with the Department of Justice.
A question was raised about the adequacy of enforcement of the tachograph regulations. Enforcement of these regulations is undertaken by the Garda, inspectors of my Department and customs and excise officers. My Department have continuously endeavoured to improve the procedures to secure compliance with these regulations and will maintain their efforts in this respect. The European Commission closely monitors enforcement in this area and I have been able to report to it that there is about 90 per cent compliance with the requirement to have a tachograph fitted and within that bracket, a high proportion of compliance with the requirements as to use. In 1984 a total of 20,274 inspections in relation to the tachograph was undertaken, 2,506 prosecutions were initiated and there were 2,147 convictions.
Deputies Wilson and Bertie Ahern spoke on standards for admission to the occupation of road haulage operator. Most Deputies will be aware that under an EC directive persons operating a road haulage business must be of good repute, of sound financial standing and professionally competent. The directive allows member states to determine how the good repute and financial requirements are to be satisfied; in regard to professional competence it provides that any person who has not had experience as operator or manager of a lawfully established road haulage business before 1975 must attend a course and pass an examination in specified subjects before being deemed competent. The examination must be designed to accommodate persons whose education corresponds to the level normally reached at school leaving age. The directive has been implemented in Ireland by regulations made under the European Communities Act, 1972. These provide that for the purpose of establishing the good repute of a person, I may take into account convictions for certain specified offences under road traffic and road transport legislation. The requirement of financial standing is satisfied if the person owns a suitable vehicle or has made arrangements to lease such a vehicle for a minimum of one year or proves that he has sufficient resources to establish and administer the business.
In line with the recommendations of the TCC report, I will be widening the range of convictions to be taken into account in assessing good repute. I will also be introducing more stringent requirements in relation to financial standing, but on the basis that those new requirements will not act as a measure to restrict unnecessary entry to the market. New amending regulations will be required to give effect to these proposals.
Some Deputies raised the question of a bonding scheme. Bonding could prove restrictive and so defeat the purpose of the Bill, which is the liberalising of the haulage industry. The contract for the carriage of goods is between the haulier and his customer, and the continuation of the contract will depend on the services the haulier continues to provide. It must be remembered that hauliers have freedom of choice and are not now statutorily required to accept goods for carriage.
The Chartered Institute of Transport have been appointed to conduct courses and examinations for certificates of competence. The courses are provided, subject to demand, at all the regional technical colleges and at some other establishments. For the information of Deputies, I am circulating a list of the schools and colleges providing the courses. The duration of the course is normally 60 hours for a national certificate of competence, with an additional 30 hours for the international certificate. There is a steering committee in my Department who monitor and oversee the running of courses and conduct of examinations. It was suggested during the debate that applicants for admission to the industry should, as well as passing the examination, have two years practical experience. It would be discriminatory against Irish nationals vis-à-vis operators in other member states to oblige them to have this additional requirement to qualify for a certificate of competence.
Deputy Wilson was interested in recent developments in international road haulage. With regard to the EC, the major recent developments have been that in December 1984, under the Irish Presidency, a regulation was adopted providing for considerable increases under the Community Quota Multilateral Authorisation Scheme, namely 30 per cent in 1985 and 15 per cent in each of the following four years. In Ireland's case this has meant an increase from 88 in 1984 to 147 in 1985 and to 204 in 1986. This is of considerable benefit to our hauliers because of the flexibility of operations given by these multilateral licences which permit Irish hauliers to engage in international haulage operations throughout the Community.
A directive on weights and dimensions of certain categories of goods vehicles in international traffic, also adopted in 1984, provides for a gross weight limit of 40 tonnes for five and six axle combined vehicles. Ireland was granted a temporary derogation during which period the existing gross weight limit of 38 tonnes may be retained; this derogation is to provide time for the improvement of bridges and roads. The maximum of 38 tonnes has applied only since September 1983 when it was increased from 32 tonnes. A policy decision taken by the Council of Transport Ministers in November 1985 envisages the removal of quantitative restrictions by 1992 at the latest. Ireland strongly supports the liberalisation of international road haulage within the EC, subject to qualitative controls related to technical standards and professional competence.
International road transport operations are also undertaken on the basis of bilateral road transport agreements or the European Conference of Ministers of Transport — ECMT — multilateral licensing scheme. To date, 12 bilateral agreements are in operation and a number of others are being negotiated. Ireland has 31 ECMT multilateral licences which enable holders to operate between 18 of the 19 member states — one member, Finland, does not participate.
Some Deputies commented on the costs borne by Irish operators vis-à-vis Northern Ireland hauliers. Deputies are aware that prior to this year's budget various reliefs had been given in the form of a reduction in VAT on repairs and a reduction in duty on spare parts and tyres. The 1986 budget provides for the phasing out of the remaining 10 per cent duty on spare parts and for the abolition of duty on tyres and tubes.
As indicated in the Green Paper on Transport Policy, the question of the cost competitiveness of the Irish road freight industry is being kept under review. The recent study into cost of road hauliers in Ireland and the UK, though not conclusive, does not appear to support the view that there is a wide margin in favour of UK hauliers.
The question of competition from semi-State bodies enjoying State subsidy was also raised. CIE hold a merchandise licence but I must stress again that CIE do not receive any subsidy for their road haulage operations. They compete at present with other hauliers for business and will continue to do so. The effects of the liberalisation measures on CIE will be no different from those to be faced by other hauliers. The B & I do not hold a merchandise licence but operate a haulage service in the Dublin exempted area. The company maintain a panel of between 120 and 160 licensed hauliers for the transport of their containers throughout the country. The transport of those containers provides business of the order of £4½ million for the hauliers concerned. The road transport department operate at a profit and do not benefit from any moneys received from the State.
I have been informed by B & I that there are standard rates for vehicles and containers carried on their ships and these are applied irrespective of whether they are owned by the company or other persons.
On the question of own account operators being permitted to engage in carriage for reward, I must stress that if own account operators want to carry for reward — either back or forward loading — they will have to get the new licence. To get this like all other applicants they will have to meet the requirements of good repute, sound financial standing and professional competence. Own account operators have always had the possibility to acquire merchandise licences by transfer but very few have availed of this. The trend since liberalisation was initiated has been for a greater share of haulage to be done by the professional hauliers. This has also been the case in the UK. If hauliers improve their services, particularly as regards regularity and reliability, they should be able to continue to improve their share of the market.
I think it is important to say that road freight transport on own account is not of itself to be criticised. A great deal of it, such as specialised transport of petroleum, fuels or foodstuffs, is essential on grounds of safety or hygiene. Nevertheless, in general, it is likely to be inefficient as well as costly in environmental terms.
In the normal way, own account road freight transport is devoted either to delivery only or collection only and so condemned to unladen running for up to half the mileage performed. That in itself must be excessively costly, as is the fact that the inadequacies of own account transport call for higher numbers of vehicles than would a fully utilised national fleet. Moreover, if there are too many vehicles on the roads, road costs go up and there are high indirect costs in terms of congestion and environmental damage, not to mention fuel consumption.
Prima facie, therefore, it would be better to have an efficiently used and adequate professional transport fleet than a continuous increase of investment to meet the needs of own account carriage. Nevertheless, I have to stress that there are no hard or fast rules. If the requirement of an own account operator is to keep his vehicle moving fast but under strict control, empty running in one direction may be an essential to meeting his needs.
Deputy Wilson asked for some details of own account operations in other member states. The most recent EC road freight statistics on this are for 1983 from the magazine Eurostat. According to those, carriage on own account for internal journeys only in the other seven member states for which statistics have been published — figures are not available for Italy and Luxembourg — averages 39 per cent of total, ranging from about 28 per cent in Greece to about 54 per cent in Belgium. The own account share for Ireland is shown as 66 per cent, so one can see that we are away above the highest other member states in the EC.
In the matter of leasing of vehicles I know that the licensed hauliers are opposed to the proposal to allow short term leasing of vehicles for own account operations. In my opinion it would not be practicable to provide against short term leasing once long term leasing is allowed. The removal of control on smaller vehicles in 1978, coupled with the fact that in the exempted areas there never was any restriction on long term or short term leasing by own account operators, renders the leasing question marginal. Reference was made to a suggestion by the CII that is should be possible to lease a vehicle with a driver. I would see this as creating another means of law evasion under which unlicensed persons could carry for reward by having themselves leased along with their vehicles.
Some Deputies thought there should be provision for impounding of vehicles where serious offences are detected. The more serious offences are likely to arise under the Road Traffic Acts which are administered by the Minister for the Environment for example speeding, excessive weight, mechanical defects. These Acts already give powers of detention to the gardaí in relation to serious defective vehicles. I have been in touch with the Minister for the Environment and he has informed me that he is considering, in the context of a review of road traffic legislation, whether similar powers might be provided for other offences under road traffic law. We do not consider that offences under Road Transport Acts — illegal haulage — warrant detention.
There was also a suggestion for the establishment of a licensing authority to grant licences in accordance with the demand of the market. In my opinion there is no case in the context of qualitative control for a licensing authority. Indeed, it would be contrary to the concept of liberalisation. Also under a qualitative system there is no correct distinction by which I could make fish of one and flesh of another. We have had a supply and demand provision in the law since 1944 and it has been completely unworkable. No one in the future will be entitled to hold a licence without holding the appropriate qualifications and continuing to hold them.
Deputy Ned O'Keeffe was concerned that the position in regard to the carriage of livestock should not be adversely affected by the enactment of the Bill. I can assure the Deputy that the position in that respect will not be altered. Transport of cattle, sheep and pigs within the State has been exempt from licence control since 1971. Hauliers engaging in international haulage of such animals will, as now, have to satisfy the requirements of good repute, financial standing and professional competence and will also need permits except in the case of operations to and from Northern Ireland restricted to 25km on either side of the Border. Under an EC directive carriage of live animals in special vehicles, while subject to permit, is exempted from quota restrictions.
Deputy Skelly, in reference to section 12 which empowers me to grant temporary permission for a maximum of 18 months for the carrying on of a business where the licensee or designated person dies or becomes physically incapacitated, consider that the time should be extended. The position is that as the EC directive on admission to the profession specifically limits the temporary permission period to a maximum of 18 months, I cannot modify this provision.
Indeed, I would again remind all Deputies that the regulations governing access to the occupation are EC regulations and I cannot, in general, vary what the EC stipulates. There is some discretion as to the level of certain criteria and I intend, as already indicated, to maintain standards at a high level. I must not, however, apply standards which would discriminate against Irish hauliers vis-à-vis their opposite numbers in other Community countries.
There was some criticism of the condition of our roads. I think the 1985 road plan clearly demonstrates the Government's determination to develop the road network. Progress to date on the implementation of this major improvement programme has been very satisfactory. Of the 54 projects listed to start or to be completed up to the end of 1987, 28 are in progress, compulsory purchase orders have been confirmed for eight projects, one bridge order has been confirmed and public inquiries have been held for 12 projects. Of the nine projects scheduled to commence in 1985, eight have started and the remaining one, the Blackrock by-pass, will start in the first half of this year.
In the two years 1985 and 1986, the State will have provided 97.5 per cent of the funding promised in the road plan, compared with 73 per cent in the first two years of the Road Development Plan for the eighties. The 1986 allocation will maintain the programme at its 1985 level in real terms and it is not expected that the shortfall on improvement works will have a significant adverse impact on the programme of major projects outlined in the road plan. Planning for 1987 is proceeding on the basis of the plan.
Matters of detail in relation to particular provision of the Bill will be covered on Committee Stage. I would like to thank Deputies once more for their very interesting contributions to the debate and for their generally supportive attitude to the Bill.
I believe that this Bill is of great importance. It will have a very advantageous effect on the road haulage industry. I know there has been considerable apprehension in that industry about this Bill although it has been very muted of late. Their apprehension is misplaced. I have said to them at all times that this Bill represents a great opportunity for them, as has every previous liberalisation, this being the ultimate step. They had a legitimate concern in the area of enforcement and I hope to rectify that ommission by a Committee Stage amendment.
This Bill forms a part of a very major wrap of Transport Bills which have been before the House since Christmas or will be coming before one or other of the Houses in the next few weeks. A total of ten or 12 Transport Bills will be enacted this year, including this one. I would hope that the overall effect of all the legislation would be to transform Irish transport and to set the scene for a vibrant transport system for the years and decades ahead.
