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Dáil Éireann debate -
Wednesday, 1 Jul 1992

Vol. 421 No. 9

Ceisteanna (Atógáil)—Questions (Resumed). Oral Answers. - Haulage Costs.

John Browne

Question:

14 Mr. Browne (Carlow-Kilkenny) asked the Minister for Tourism, Transport and Communications her views on whether Irish hauliers on the continental route can compete successfully with their Northern Ireland counterparts; and if she has any plans to reduce the overhead costs for hauliers in this State.

I accept that transport costs in general have tended to be higher in the Republic of Ireland than in Northern Ireland. While I cannot quantify the extent of the difference, it has been reduced in recent years as a result of Government economic policy and the trend towards harmonisation of transport costs throughout the EC. I have no information on direct cost comparison for access to mainland Europe from either part of Ireland. The key factors in both access and internal transport costs, such as port and sea freight charges, fuel prices, tax and excise duties, labour and insurance costs, are outside the scope of my remit at the Department of Tourism, Transport and Communications. The reduction in such costs is not, therefore, a matter for my Department.

Operations abroad by Irish hauliers are facilitated by my Department by the issue of EC multilateral authorisations, EC cabotage authorisations and licences for access to ECMT member states. Ireland has also concluded bilateral road transport agreements with most European countries, which facilitate the haulage industry. The availability of increased numbers of EC multilateral and cabotage authorisations allows greater access to the EC market and the abolition of the requirements for permits for some countries, including the UK has reduced the formalities for Irish hauliers operating abroad. My Department are continuing to work for the optimum deal for Irish hauliers in terms of access to international markets.

Factors which militate against fair competition for Irish hauliers, such as inadequate roads and ports, are being addressed by the EC Operational Programme on Peripherality. Under this programme, the State, with EC assistance, is investing heavily in major improvements in transport infrastructure. As these developments come on stream they will enable Irish hauliers to arrive at continental destinations more speedily and at lower cost.

(Carlow-Kilkenny): As the important date of 1 January 1993 is approaching, could the Minister say whether things will then get better? For example, will tax rating come into line? It seems that in England the carrying capacity is used in the assessment of tax whereas in Ireland a gross system, including both carrying capacity and the weight of the transporting vehicle, is used. It has been put to me that Irish transporters — and by definition I mean transporters from the 26 counties — may have their vehicles impounded in the North if something is wrong, whereas the Garda cannot impound the vehicles of Northern transport companies coming into the South, no matter what laws they might break. In that way transporters from the North have an advantage. If a senior member of the Minister's Government is using Northern Ireland transport companies, would that not prove that they have a cheaper rate of costs?

The dogfood is going out with Northern hauliers.

The taxation of vehicles in this country is a matter for the Department of the Environment. The only concern of my Department with licences relates to the fees for the licences themselves, which are broadly in line with the level prevailing in the UK. Concerning the question of——

The dogfood.

——Northern transporters breaking laws in this country and the problems faced in relation to enforcement of our laws as compared to the conditions prevailing when our transporters go abroad, I realise that there is a problem. That is being examined and it is hoped that legislation will be introduced to deal with that matter.

If the position is as the Minister outlines, that he just does not know about the difference in costs between using Northern Ireland hauliers and Southern hauliers, would he commission a study into the matter? Is the Minister not concerned that for RORO traffic four out of every ten containers coming into this State or leaving this State go through Northern ports and that this is estimated to constitute a loss of revienue of about £60 million to the Irish economy? Would the Minister not take into account the point made by Deputy Browne that it is a very bad example and most unpatriotic for so much dogfood to be going out with Northern hauliers?

I do not know why Deputy Yates is so worried about dogfood all of a sudden.

His bark is worse than his bite.

Perhaps strawberries are going that way as well. The Deputy made particular reference to container traffic.

I am referring to the Minister's Taoiseach.

I am sure that the Deputy is well aware of a major development in Waterford at present.

I am talking about RORO.

Container traffic is one of the most cost-effective means of moving goods out of this country at this time. As the Deputy is well aware, because of our economic policies in the past the differential in cost between this State and the North of Ireland has contracted to a great degree.

In the North it is one-third of the cost.

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