asked the Minister for Tourism and Transport the fare reductions and other advantages to be expected as a result of the most recent meeting of the Council of EC Transport Ministers.
21.
Ceisteanna—Questions. Oral Answers. - Air and Road Transport Policy.
15.
asked the Minister for Tourism and Transport if he will outline the most recent developments on the deregulation of air and road transport within the EC; and if he will explain, in particular, the way in which these measures apply to Ireland.
26.
asked the Minister for Tourism and Transport if he will outline the effects of the recent European agreement on air fares; and if he will make a statement on the matter.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 15, 21 and 26 together.
With regard to air transport, as part of the drive to complete the internal market in air transport by 1992, the European Transport Council on 7 December 1987 finalised the content of a Community air transport policy which will apply up to end June 1990. The policy embraces more flexible regulatory arrangements in areas of air fares, capacity, market access and competition.
The package is welcome on a number of counts. New air services between Community countries can be inaugurated speedily and with minimum formalities. As an immediate benefit, Ryanair's direct service from Cork to Luton is now operating and the proposed service from Shannon to Luton has been approved by the UK authorities.
I got in touch with the British Minister with regard to those two services and the British agreed that we would not have to wait until 1 January when the package comes into effect legally in Europe for that service to begin. They agreed to an immediate start of that service.
A feature of the package is that where major routes like London/Dublin are concerned, the restrictions on the number of operating carriers is now being lifted. We can, therefore, expect new operators to show interest in serving the London to Dublin routes. I welcome the prospect of additional services which should help to give a further boost to our efforts to increase the number of tourists from Britain visiting Ireland.
The package has important benefits for regional development in Ireland. It facilitates the operation of services by airlines from other member states of the EC to Irish regional airports including Cork, Shannon, Horan, Waterford, Sligo, etc.
The package should also have significant benefits for existing and potential users of air transportation. It permits greater pricing flexibility for airlines and a limitation on the rights of Governments to intervene in the interest of their own airlines. The travelling public can, therefore, look forward to a better service in terms of frequency of flights, quality of service and level of fares.
Another important feature of the package from an Irish perspective is the additional commercial development opportunities which will arise for Irish airlines. Irish carries will be in a position to exercise traffic rights — i.e. fifth freedom rights — between airports of other Community members. This will, for example, enable the recommencement of services on routes from, say, Manchester to European mainland destinations which the UK authorities withdrew some years ago.
The additional fifth freedom rights involved are of course available to all Community airlines in so far as they relate to services between hub and regional airports. However, additional rights have been won by Ireland under which an Irish carrier can exercise fifth freedom traffic rights between major European hubs, e.g. London, Paris, Amsterdam, Brussels. This major concession — which is also available to Portugal — is a recognition by our Community partners of the particular difficulties which affect airlines of peripheral countries and represents a significant negotiating breakthrough for Ireland. It was consoling to see the support we got in the Council for that concession.
These developments herald a new era for the Community's 320 million consumers particularly in so far as their leisure activities are concerned. I am quite confident that Irish tourism can prosper in this new environment.
As regards road transport, the Council of Ministers had before it two proposals — one for the liberalisation of international road haulage operations by 1 January 1993 which includes an annual increase of 40 per cent in the Community quota authorisations and the other laying down conditions under which hauliers may engage in cabotage operations in another member state. Adoption of the liberalisation proposal would mean that Ireland's allocation of Community quota authorisations would increase annually by 40 per cent up to 1992. Thereafter the quota system would be abolished and Irish hauliers who are qualified uner EC Regulations to engage in international road haulage operations would be entitled to an EC licence. The cabotage proposal would enable Irish hauliers to carry out internal haulage operations in other member state: equally, of course, hauliers from other member states could carry out similar operations in Ireland.
At the Council meeting on 7 December 1987, time did not allow for completion of difficult discussions on the road transport items. The Council meeting will reconvene tomorrow 16 December 1987 and I am hopeful that a definitive decision will be taken on these issues.
I found the latter part of the reply relating to road transport deregulation a bit incomprehensible. Perhaps the Minister has problems with it himself. We all welcome the further deregulation and so on. Could the Minister tell us what price reductions this will lead to in reality? Commentators have said that the price reductions might be as little as 5 per cent or 10 per cent, whereas it is obvious that some independent carriers operating from this country can offer a trip for virtually half the fares operating heretofore.
Let me comment on the first point the Deputy made in regard to road transport. It has simply been held up by one major European country that is anxious to have harmonisation of all types of taxes and imposts in all the countries because it feels it suffers unduly from the fact that it is used for transport and is getting nothing out of it. The second point was in regard to the cabotage, permission for a foreign country to pick up goods and drop them in another country. With regard to the substantive supplementary on fares, it is fair to say that the structures have been put in place for competition, but the market will decide how much cutting of fares there will actually be. I know that the editor of a very prestigious in flight magazine said that he did not expect great reductions in fares. I listened carefully to what he said and he used the subjunctive mood right through all his statements and did not make any actual statement.
Is the black pudding still going to cost £200?
This breakthrough has been the result of long term pressure on Ireland's part. I would like to know if, following on that, there have been any filings from any Irish airlines to commence fifth freedom operations through a second country to a third country? Has he had any applications for routes through Europe? Has there been any indication that routes already provisionally granted by Ireland will now be taken up by Irish airlines?
At the moment I have no applications but this only happened on 7 December and it takes a while to put the arrangements in place. I expect them.
Can I take it that the Minister not only expects them but is using all the muscle he has to ensure that Ireland, having made a song and dance about market access for so long, will now avail of it and ensure that there are economic services to this country of a fairly high frequency?
In relation to road transport liberalisation, will the Minister agree with me that the opportunities there are even greater than the opportunities in air transport? Has he considered the responsibility of setting up an Irish transport centre somewhere in north western Europe to facilitate the opening opportunities in road transport?
Judging by the mood of the airlines we have here, there will be little delay in receiving applications and in seeing developments which are now permitted under the new package.
In regard to the second point made by the Deputy I could not say quantitatively whether it will be better or worse than the air opportunities. There are great opportunities in the area of road haulage. I take note of the Deputy's reference on Second Stage of the Transport Bill to a centre in Europe and I shall have my Department consider it.
I want to ask the Minister—
Could I ask, on a point of order, for a written reply to Question No. 19?
Certainly, Deputy.
I did not hear the Deputy call for a point of order. I wanted to ask if there is any time limit placed upon the special concession won by Ireland and, indeed, Portugal, with regard to the rights of traffic to major European hub cities. Is there a time scale on Ireland taking up its options under that exception? Have the year 1992 and the full integration of the single European market any implications for Ireland in this context? Would the Minister accept that there is a greater onus on the Government to ensure that our national airline, if no other, takes up every available opportunity to develop their services and the service to the community?
This arrangement will be in place up to 1990 and provision is made in the agreement for pushing it a step further before 1990 has been reached. There is no limit with regard to starting off. The third point made by the Deputy referred to my obligations in the matter. Certainly, the air companies operating in Ireland will be made aware of my intention that the opportunities should be fully exploited.
That disposes of ordinary questions and questions nominated for priority for today.
I give notice of my wish to raise on the Adjournment the subject matter of Question No. 22 with regard to Knock Airport. In addition, I wish to refer to the fact that this company owe the Department £165,000 in the current year for air traffic services and flight checking services, which is in direct contradiction to the allegation that the company made money this year.
I shall communicate with the Deputy.
I wish to raise on the Adjournment a matter on which I tabled questions to three different Ministers but to which I cannot get an answer. It has to do with the tourist industry and the availability of grants for the thatching or rethatching of houses. As far as I can determine, there is no such person in this country as a registered thatcher; therefore one cannot get a grant for this work.
She is in the United Kingdom.
I shall communicate with the Deputy.
I want to raise this matter on the Adjournment, if at all possible.
Would the Deputy put the question down to me?
I did last week and it has been taken away from that Minister.
I am not notoriously friendly with Thatchers, but the question is of interest to me. There is a vast number of areas in Britain where the craft is very carefully cossetted and maintained and I should like to know the situation. The question may not be my responsibility.
We could do without Thatchers. Nobody will claim responsibility.
I wish to raise on the Adjournment the inadequacies of the Dublin fire services and the proposed cutbacks in that area.
I shall communicate with the Deputy.
A question in my name to the Minister for Tourism and Transport asking if he had plans to assist the Dublin Millenium in the area of tourism was disallowed. I wish to raise the matter on the Adjournment.
I shall communicate with Deputy Gay Mitchell with regard to that matter.
I seek permission to raise on the Adjournment a matter which has been raised before. It is a rather serious matter in many working class areas in this city and in the country generally. It is the acute problem with regard to moneylending just before Christmas time. I ask the Ceann Comhairle to give special consideration to my request.
I shall communicate with the Deputy.
I wish to raise on the Adjournment the subject matter of Question No. 199 of last Tuesday.
I shall communicate with the Deputy. May I now respectfully suggest that the House adjourn until 3.45 p.m., when we shall proceed with the next business? Agreed.
Sitting suspended at 3.35 p.m. and resumed at 3.45 p.m.