asked the Minister for Tourism and Transport the latest position regarding the complete liberalisation of road transport in the EC by 1992; if there have been any recent changes proposed at the European Council of Transport Ministers; if agreement has been reached at the Council; if he will outline the position he has adopted at the Council; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Liberalisation of Road Transport in EC.
23.
I am happy to report that at the meeting of the EC Council of Transport Ministers in Luxembourg on 20-21 June 1988, the Council agreed to major increases in the Community quota of authorisations for multilateral haulage. Ireland's 1988 allocation will increase from 420 to 671 with effect from 1 July and the 1989 allocation will be 940. I should point out that the Council took into account the particular difficulties for Irish hauliers because of our geographical location.
These increases compare very favourably with the position obtaining in 1984, when we had 88 and in the latter part of 1987, when we had 341 authorisations. This meant that we were unable to meet the needs of Irish hauliers. As a result of last week's decision, we should be able to meet in full the needs of Irish hauliers who wish to undertake haulage between EC member states. I hope they will fully exploit the opportunities now being made available to them.
The Council also confirmed that all quantitative restrictions on international road haulage will be abolished by 1 January 1993. This represents a major step forward in the liberalisation of the European road freight industry, enabling it to prepare for the challenges and opportunities that will arise from the creation of the single European market.
As a priority at Council level, I have always strongly supported the principle of liberalisation of international road haulage and, accordingly, I favour the removal of quantitative restrictions on international road haulage between member states, subject to qualitative controls directed mainly towards technical and professional competence.
Liberalisation of the road haulage sector will also mean the introduction of cabotage operations, which involve the opening up of the domestic road haulage market to transport by hauliers of other member states. While the Commission has submitted cabotage proposals to the Council of Transport Ministers, the debate has been protracted because some member states have serious reservations about its introduction. My position at Council level has been that liberalisation of international haulage should precede the opening up of internal national haulage to non-resident hauliers.
A third element of last week's Council decision provides for a review of the situation of the haulage industry in 1990 and decisions at that time on the measures to be taken in the event of a crisis. Issues in this regard which might constitute problems for some member states relate particularly to the harmonisation of conditions of competition.
Various common rules applicable to international haulage have already been adopted by the Transport Council in such areas as vehicle weights and dimensions and the social regulations. Further proposals in these areas are currently being debated, as are proposals relating to access to the profession of road haulage operator. Fiscal matters being discussed include harmonising excise duty on diesel, increasing the amount of diesel imported duty-free in fuel tanks, requiring road tax for heavy goods vehicles to be calculated according to laden weight, and proposals for harmonising road tax rates. The EC fiscal harmonisation proposals are complex and have major economic and revenue implications for Ireland. The proposed harmonisation of specific transport taxes must be considered in the context of the overall fiscal harmonisation proposals which is, of course, primarily a matter for the ECO/FIN Council.
In so far as the liberalisation of road passenger transport is concerned, there are currently two proposals under consideration by transport Ministers. These proposals provide for the further opening up of international passenger markets within the Community and for the conditions under which non-resident carriers may operate national road passenger transport services within a member state. At Council level, these proposals have not reached a sufficiently advanced stage of consideration to allow their adoption. A considerable amount of work and discussion is still required to overcome many of the fundamental difficulties of member states.
Did the Minister say that he did not favour cabotage?
No, I said we should complete the international liberalisation process first before we go on to the cabotage.
Will the Minister agree that that would limit the advantage of liberalisation to our own drivers on the Continent of Europe? Will he accept that one of the major opportunities would be the ability to perform cabotage in continental countries and indeed in the United Kingdom? Will he also agree that our best interests would be served in pressing for cabotage and not retarding it? As part of the liberalisation programme now agreed, will it be possible for our hauliers to take up goods in a second country and to bring them to a third country?
If all 12 countries wanted cabotage proposals put in place at present, it would have an ex-parte effect. However, that is not so and the debate is far from over. Negotiations are taking place and when the stage of full liberalisation has been reached, we will be able to bear the strain.
Deputy J. Mitchell rose.
The time available for priority questions is exhausted but, with the permission of the House, I will take the last remaining question in the name of the Deputy if supplementaries will be brief.