Vol. 412 No. 2
11 Mr. Yates asked the Minister for the Marine the reason the Government reduced its support for the Irish cargo shipping sector in the form of the reduction in capital grant aid this year and the removal of eligibility in the business expansion scheme; and the steps the Government propose to take to increase Irish shipping capacity.
As the Deputy may be aware, last year the Government commissioned a major study into Ireland's access transport needs. The study which was jointly funded by the Government and the EC Commission examined current and projected capacity requirements for sea and air transport. Its findings and recommendations have formed the basis of a detailed submission to the Commission which was presented by my colleague, the Minister for Transport, on 27 May this year.
The Deputy will no doubt be pleased to know that the current Irish fleet totals almost 195,000 deadweight tons which represents an increase in capacity of 37 per cent since 1986. The increase in fleet size has been aided by various Government incentives for expansion in the form of grant aid, BES investment and tax reductions. The fivefold reduction in the level of corporation tax, viz. from 50 per cent to 10 per cent, payable by shipping companies is a most important and significant initiative which has underpinned the recent increase in the Irish registered fleet.
As regards the Deputy's reference to the various curtailments of the business expansion scheme arising from this year's budget this is primarily a matter for the Minister for Finance.
Is the Minister not aware that the average age of the cargo fleet is 14 years and is increasing rapidly? Is he further aware that Government grant aid has been cut from £7.5 million in 1987 to less than £500,000 this year? Will he agree it is somewhat hypocritical of the Government to look for grant-aid for shipping from the EC when they are cutting back on grants in this area?
I would again call the Deputy's attention to the 37 per cent increase in tonnage in the Irish fleet since the end of 1986. That is not a tale of woe in any man's language. We have put a proposition to the EC for the expenditure of over £100 million in this area with private sector investment and European Community financing. I would like the full support of Opposition spokespersons for my efforts to get that money for mobile assets which is not all that easy to get. I can rely on Opposition spokespersons to support me in that request.
In view of the fact that we are an island nation depending on sea shipping for 99 per cent of our exports will the Minister not agree that the Government should give a commitment that if there is such EC funding it will be extended beyond ferry-type ships and that there will be a matching commitment from the Irish Exchequer?
That is exactly what the Government have been doing. The Deputy knows that shipping companies on the east coast have been helped in the ways mentioned — this help is multifaceted — and that ships on the south coast have been subsidised by the Government. Our plan involves major shipping investment in the centre of the Irish Sea and from the south coast.
