andMr. Sheehan asked the Minister for Tourism and Transport if his attention has been drawn to the fact that our hauliers are operating at a competitive disadvantage because hauliers from Northern Ireland have lower operating costs and because our weight limits are lower than those applicable on the continent; and if he has any proposals to improve the situation.
Ceisteanna—Questions. Oral Answers. - Hauliers' Operating Costs.
6.
I am aware of the disadvantages inherent in the Irish haulage industry including those mentioned in the Deputies' question. The Government are anxious that all competitive disparities be reduced. Many of the operating costs involved for hauliers — port and sea freight charges, insurance and vehicle taxes — are outside the scope of my remit as Minister for Tourism and Transport.
The Government, however, have recognised the vital role of transport in the economy and the necessity that it be provided with the resources required to be ready for 1992.
For this reason the National Development Plan recently submitted to Brussels points out that a significant reason for high transport costs in the Republic is the deficient state of the national roads and access roads to the principal ports and airports. The plan contains proposals that expenditure on the development of main Irish commercial ports will be concentrated on Dublin, Cork, Rosslare and Waterford and will amount to approximately £72 million over the period of the plan. In addition, the provision in the plan for the improvement of national roads and access roads is £755 million.
These improvements when implemented, will result in the transport industry being in an enhanced competitive position vis-à-vis our European counterparts as we have in-built disadvantages.
I appreciate that there are certain fiscal cost differences between Irish and Northern Ireland hauliers for which there are no easy solutions. I would have to point out, however, that in the area of road tax, hauliers in the South fare much better than their Northern Ireland colleagues. For example, the road tax on a 38-tonne truck is approximately IR£900 per annum in contrast with up to IR£3,700 per annum in Northern Ireland, depending on the axle configuration.
In relation to the lorry weights situation, Ireland and the UK secured a derogation to retain a national limit of 38 tonnes on 5-axle vehicles because of the need to improve the roads infrastructure — notably bridges to carry heavier lorries. The other EC member states have accepted our difficulties on this issue and the Council are now engaged in deciding on the date of termination of the derogation. Ireland has indicated that 31 December 1996 can be accepted as the terminal date for the derogation, on condition that the necessary infrastructural costs would qualify for EC grant aid at the maximum rate. In fact, in so far as competitiveness is concerned, in the heavier vehicle categories, mostly used for international carriage, i.e. 5 or 6-axle combined vehicles, Ireland's limit is more favourable at 38 tonnes and 4-axle vehicles at 35 tonnes, while the Northern Ireland limit is 32.5 tonnes — so we have a weight advantage there. In all other categories we operate similar weight limits.
There are two aspects to this question, the first being in relation to the Northern Ireland hauliers. Does the Minister accept that there is an enormous differential in costs as between Northern Ireland hauliers and domestic ones, that the consequence now is that hauliers from Northern Ireland are getting many contracts in the Republic, including, I am told, from public bodies such as Donegal County Council? Would the Minister accept that there is a great need — from the point of view of tax harmonisation, leading to the same cost of trucks and equipment — for urgent action from that point of view?
The second aspect is in relation to the differential in weights as between ourselves and the Continent. Is the Minister aware of the kind of practical difficulty that arises here when a 40 tonne container is landed at Rosslare to be picked up by an Irish haulier who legally cannot carry more than 38 tonnes? He cannot break the seal on the container to remove two tonnes. Therefore, he has two options open to him, one, either to leave it there or, second, break the law. Would the Minister accept that that kind situation is ludicrous, apart from the broader weight problem, and requires urgent attention?
I would agree with the Deputy that costs, particularly vehicle costs and excise duty on vehicles, is comparatively very high here. The same is true of fuel costs. As I mentioned already, all of this area — as the Deputy will be aware from newspaper reports — is under active consideration by the Ministers for Finance in the European Economic Council. Our Minister for Finance, Deputy Reynolds, made a very strong statement on the matter quite recently. It is quite obvious that a lot of hard work, bargaining and negotiating must take place between now and 1992 to resolve the very serious difficulties that do exist and to which the Deputy refers.
In regard to the other point the Deputy raised, I should say, first, that if something arrives at Rosslare from Britain——
——from the Continent.
——if it comes from the Continent, yes. But until the date mentioned — if that is the final decision — that final decision will be taken at the Council meetings on 5 and 6 June next. Until the Council decide and issue a directive there is no way that a haulier from the Continent would bring a 40 tonne container into Rosslare because it would be illegal for him to do so until at the very earliest, 31 December 1996. Conditional on the money being available to strengthen bridges already examined and selected by the Department of the Environment, the position to which the Deputy refers could apply from 31 December 1996, seven years away.
Is the Minister aware that my understanding from hauliers is that, in practical terms, this problem exists now, that 40 tonne containers are arriving by ferry, being dropped into Rosslare for collection by Irish hauliers; that the Irish haulier is then placed in a position in which he either has to break the law or leave the container there being unable to open the seal on it to off load two tonnes because 40 into 38 will not go? I am advised by hauliers that this practical difficulty now exists and they look to the Government — for how long they may be here——
Long may they be here.
——and to us to provide a solution. Has the Minister any solution or will they have to wait for a few weeks before we can provide one?
The only solution I could have to the case the Deputy instances is for the people who are ordering the freight from the Continent to point out what the law is in this country. I am sure the French people would be as anxious as we are to abide by the laws of this country.
French businesses will not be too concerned about our laws.