asked the Minister for the Marine, in view of a decision announced at the weekend of 14-16 April 1989 by freight carriers operating on the North Atlantic routes between the United States and Europe whereby (1) rates are to be increased by 10 per cent to and from Ireland and (2) Waterford is to cease to be a base port, the action he intends to take directly and in conjunction with the European Commission.
Ceisteanna—Questions. Oral Answers. - Flight Carriers.
9.
I would refer the Deputy to the comprehensive response given by me on 26 April last when this matter was raised by his party colleague, Senator Bulbulia, in the Seanad.
In my reply, I already articulated the Government's concern at these developments and went on to outline the contents of a letter which I had written to the chairman of the North-Eastern Atlantic Conference Line, strongly urging that they reconsider their proposals relating to arbitrary charges and Waterford port.
The letter was written following extensive consultations with shippers' interests who in their dialogue with the representatives of the Conference Line, have made abundantly clear that they are unwilling to accept either the rates increase or the removal of Waterford as a designated feeder port to the Conference Line.
The Deputy may also have seen reports of my speech in Waterford on Tuesday of this week at the celebration of Bell Lines 25th year of operations at the port. In my speech I reiterated the Government's support for Irish exporters in their refusal to accept these impositions and noted with satisfaction the advent of real competition in this important area with the arrival in recent years of major non-conference lines who provide competing services on trans-Atlantic routes.
The question of taking up this matter with the European Commission will be considered in the light of the response of the conference.
Regarding the letter the Minister sent to the chairman of the North-Eastern Atlantic Conference Line, may I ask what reaction he expects to this letter? Was it a request that these charges be not increased and that Waterford be not deleted as a base port, or was it a demand? In other words, if they do not agree to what the Minister has asked, does he have any recourse to taking tougher action in the form of sanctions against these companies?
I think all of us first became aware of this problem when it was announced on the night of the Irish Chamber of Shipping dinner in Dublin. I took the opportunity that night of familiarising myself with the proposed measures and the serious implications which the additional charges would have not alone for Waterford and the south-east but for the country as a whole.
With regard to the Minister's letter to the chairman of the Conference Line, I should point out to the Deputy that the Conference Line are a commercial company made up of a consortium of shippers. They have been told of the serious implications of these developments for the country but we have pointed out the serious implications for themselves. I fully believe that when the Conference Line took this decision they did not realise the importance of the business from Waterford for them and the rest of the country. They are not the only Conference Line there; there are two other conference lines and while in Waterford I took the opportunity to meet with both — OOCL and Johnson-Stephens who represent Top Galiant Lines. I was surprised when I noted their quotations. One line sails weekly and the other sails fortnightly. The chairman of the North-Eastern Atlantic Conference Line who has by now received the Minister's letter must realise that good business sense must prevail. We have had numerous meetings with the shippers in the country. The Irish Shippers Council have met with the Conference Line people and I think it is fair to say that the Conference Line people did not seem to be aware of the seriousness of the problem for the country.
Following the Minister's letter, when I was in Waterford celebrating with Bell Lines their 25 years in business — of course, they have been in business for many more years as George Bell — I took the opportunity of meeting with the other people involved and made it clear publicly to the Conference Line that if this had happened some years ago it would have had more serious repercussions. However, because there are other conference lines providing a service there at present, I feel confident that the response from the chairman to the Minister will be favourable. The Deputy can take it that since we first heard of the proposed measures the Minister, the officials of the Department and I have been working assiduously pointing out to them the serious implications of this move for the whole country.
I wish that the Conference Line's intentions were as innocent as the Minister has outlined. However, I suspect that there is something very sinister about this whole episode. It does seem that an attempt is being made to squeeze the main sea container carrying company in this country, Bell Lines, out of business. Has that been drawn to the Minister's attention? It looks as if these people are trying to direct the traffic which Bell Lines currently have to their own operators within this State. The motive for their actions could be extremely dangerous so far as the future of Bell Lines is concerned.
I want to assist the Deputy but we must proceed by way of questions.
I should like the Minister to look into that aspect of the matter. If my suspicions are true, what action will the Minister take, and if he cannot take action directly, what action can he take through the European Commission?
The Deputy asked me to look into this matter and I should point out that we have done so. I met with Bell Lines for some hours on Tuesday morning last. While I was delighted to attend the Bell Line celebrations of their 25 years in business, I thought I would have the opportunity of meeting Deputy Deasy at those celebrations so that we could have discussions. It is not just the interests of Waterford that are involved here: the interests of the country as a whole are involved, and we have a responsibility to look after them.
Bell Lines are a very big company and if this proposal is introduced I believe they will be able to face it. I believe the problem lies with the Conference Line and that at the end of the day they are the people who will suffer most. In saying that I am optimistic that good commercial sense will prevail. The Minister, the departmental officials and I have taken this matter very seriously because of its implications for the sea freight service and we have left absolutely no stone unturned. I take the Deputy's point and we will certainly take the matter up with the Competition Commissioner — or his office as soon as we have some response from the Conference Line.