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Dáil Éireann debate -
Wednesday, 1 Jul 1992

Vol. 421 No. 9

Ceisteanna (Atógáil)—Questions (Resumed). Oral Answers. - Exporters' Transport Costs.

Bernard J. Durkan

Question:

13 Mr. Durkan asked the Minister for Tourism, Transport and Communications if she will outline the means by which she feels Ireland's position as an investment location in the European context can best be improved by way of a properly integrated transport system with a view to a dramatic reduction in transport costs to Irish exporters; and if she will make a statement on the matter.

The Government have a two pronged strategy for achieving reductions in transport costs: a major upgrading of transport infrastructure, fully integrated with mainland European transport arteries and the development of a flexible and appropriate regulatory framework to maximise competitiveness and efficiency.

Almost £900 million is being invested under the Operational Programme for Peripherality over the five year period 1989-93, jointly funded from EC and national resources. The investment is in the development of primary roads, particularly the Euro-routes; in airports; sea ports and public transport. The result in terms of improved efficiency, and shorter journey times, will undoubtedly impact favourably on transport costs to Irish exporters. The Belfast-Dublin-Cork rail lines have been included in plans at Commission level for future combined European networks. The Irish authorities are also currently pressing, both bilaterally and at EC level, for improvements in the quality of the rail link between Holyhead and Crewe in the UK to ensure expeditious inter-linking with the Channel Tunnel.

I am, of course, still actively pressing Ireland's case for EC aid for investments in sea links to mainland Europe, an area not currently covered by the Community Structural Funds.

I wish to ask two questions in relation to integrated transport services. First, what discussions is the Minister having with her colleagues in the Departments of the Marine and the Environment to ensure that we have an integrated transport package to put forward for the next tranche of EC funding in 1994-98? Second, in relation to funding for a sea bridge is the Minister aware that the Greek Government are now putting forward a special case for funding for mobile assets in that country because of the difficulties in Yugoslavia? In view of this, do we not have a better chance of getting funding for a sea bridge?

The Deputy will be aware that following a report by consultants, jointly engaged by the Government and the EC Commission, an application was lodged by the Government in May 1991 seeking approval for the principle of EC funding for investment in transport services to and from Ireland. Despite the lobbying of the then Minister and the Minister for the Marine, Ireland's application for funding for mobile assests was rejected in December 1992. In March 1992, however, following discussions between the Commissioner, his Cabinet and my Department it was subsequently agreed that a revised application be submitted. That submission has been made and was lodged with the Commission on 24 April 1992, but we are still awaiting a reply.

On the question of the co-ordination of the different Departments, very close discussions are taking place between the Ministers for the Marine, the Environment and myself and our officials to ensure that any approach to the Commission for support in the area of transport, whether mobile assets, integrated rail or road transport is co-ordinated and presented as a joint approach. I think that is very important.

Does the Minister accept the absolute necessity of securing EC funds for the provision of a sea bridge being the preferred option as opposed to using the Channel Tunnel at a later stage?

Of course this is the preferred option. The Deputy should be aware that I will not spare any effort in trying to convince the Commission that this is the better way, particularly because of our peripherality. However, I do not think this should hamper developments within the United Kingdom which would make it easier for our haulage contractors who wish to avail of that route. We should keep on the pressure for improvements, as indeed the Commission has between Holyhead and Crewe to enable Irish operators to travel more quickly to the Channel Tunnel.

Would the Minister not accept that there is a grave danger of bottlenecks developing at the Channel Tunnel and that it would be wise from our point of view to make alternative arrangements at this stage?

As I have already said, the Irish authorities and I will try to influence the Commission in every way we can to have the principle of EC funding for mobile assets accepted. That is the preferred option and the Deputy need not worry that this will not be done. As I have already said, I do not think that should rule out any improvements we can get in the United Kingdom which help our operators, who even if they had better facilities would choose to take that route.

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