Written Answers. - Transport Ministers' Meeting.
Jim Kemmy
Question:
24
Mr. Kemmy
asked the
Minister for Tourism, Transport and Communications
if she will make a statement on the EC Transport Ministers' meeting in Luxembourg; and if she will outline the effect it will have on employment in the industry, the development of the economy, and prices for consumers.
Patrick McCartan
Question:
34
Mr. McCartan
asked the
Minister for Tourism, Transport and Communications
if she will outline the implications for air travel of the agreement by EC Transport Ministers, made in Luxembourg on 22 June; if she will now be lifting the order which prevents Aer Lingus from flying to Stanstead Airport; and if she will make a statement on the matter.
Ivan Yates
Question:
86
Mr. Yates
asked the
Minister for Tourism, Transport and Communications
if she will outline the outcome of the recent meeting of the European Council of Transport Ministers in relation to decisions taken on aviation matters; and whether any proposals have been considered for a single air traffic control system within the European Community.
I propose taking Questions Nos. 24, 34 and 86 together.
At their meeting on 22/23 June 1992, the EC Council of Minister (Transport) adopted three Regulations which represent the third phase in the liberalisation of air transport in the EC and which will create a Single Market in air transport with effect from 1 January next.
They also reached broad agreement on:-
— two regulations in the competition area. Formal conclusions will be reached when Ministers have received the Opinion of the European Parliament on the proposals.
— Presidency proposals regarding cabotage in the road passenger transport sector involving regular and non-regular services.
In relation to air traffic control systems, the Commission indicated that it would report to the December Council on measures to promote greater co-ordination among States and the Agencies involved in this area.
Ministers had a broad exchange of views on the subject of fiscal harmonisation in road transport as a result of which the Commission were invited to come forward with more detailed information later this year.
Proposals relating to cabotage in the road freight sector and external relations in the inland waterways sector were discussed but no firm conclusions were reached.
The main outcome of the Council related to the air transport sector. As part of the measures agreed, airlines which are owned and controlled by Community interests will have, from 1 January next, access to routes within the Community for scheduled and non-scheduled services, without restriction on the fares to be charged, the capacity to be mounted or frequency to be operated. The exercise of traffic rights on routes within Member States will be implemented on a phased basis up until 1 April, 1997.
The regulation on rates and fares establishes a system of free pricing under which air carriers will have freedom to set fares in accordance with their own commercial judgment.
The regulation on licensing of air carriers will set common standards for issuing licences to ensure that they are financially viable and that their operations meet national safety and technical standards, which will be harmonised in due course.
The package also contains a number of safeguards and measures to promote a healthy marketplace.
The airline industry in Ireland has been gearing up to Single Market conditions since 1987. The liberalisation of policies pursued over that period have led to a reduction in air fares, and significant airline growth and expansion as is evidenced by the marked increase in number of level of services operated and the numbers employed by them. The tourism industry has also benefited considerably as is evident from the marked increase in the numbers visiting Ireland and the income generated as a result. I would hope that Irish airlines will continue to avail of the new opportunities presented to them under Single Market conditions.
The two airline policy introduced in 1989, under which both Aer Lingus and Ryanair are restricted in the routes they may serve, falls to be reviewed by the end of the year. The measures agreed at the recent EC Council will be taken into account as part of that review.
The measures agreed in relation to the road transport sector are of modest proportions with no major implications for the transport industry.
