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Dáil Éireann debate -
Tuesday, 13 Oct 1992

Vol. 423 No. 4

Written Answers. - Loss of Freight Business to Northern Ireland.

Ivor Callely

Question:

132 Mr. Callely asked the Minister for Tourism, Transport and Communications if her attention has been drawn to the fact that a huge amount of freight business is being lost to Northern Ireland; the amount of Irish business which is by passing Irish ports to Northern Ireland; the action, if any, which is being taken to improve Ireland's freight links with Britain and the continent; and if she has received any submission, recommendation or report on this matter.

As indicated in reply to a previous parliamentary question, it has been recognised for some time that a substantial amount of freight traffic which might have been expected to travel via the central and southern corridors travels instead through the northern corridor.

This diversion of traffic is attributable to a number of interwoven factors which operate in favour of the northern ports, including shipping costs, frequency and capacity of shipping services, port charges, and lower costs of Northern Ireland hauliers.

These problems are being tackled,inter alia, through a major programme of investment in transport infrastructure under the operational programme on peripherality. A key objective of this investment is to reduce the transport cost disadvantages which Ireland's unique peripherality and island nation status imposes on Irish exporters.
On the initiative of the Government, KPMG Management Consulting were commissioned to examine and make recommendations on the whole area of access transport to and from Ireland. The consultants who reported in July 1990 found that while investment in internal transport facilities was necessary, it was not sufficient to cater for Ireland's unique peripherality problems. Substantial additional investment in access transport services was needed.
Following detailed consideration of the consultants' findings, my predecessor made a formal application on behalf of the Government on 27 May 1991 for EC grant aid for initial specific priority investments on direct Ro/Ro and Lo/Lo services to mainland Europe.
On 18 December 1991 the EC Commissioner for Regional Affairs indicated that the Commission was not in a position to agree to Ireland's proposal. Among the reasons cited by the Commission were difficulties in relation to distortion of competition.
Following direct personal intervention by me, the Commission agreed to consider a renewed application which would address,inter alia, the concerns which had been expressed by the Commission. The renewed application was forwarded to the Commission in April 1992.
There have been further extensive discussions between my officials and the Commission. Arising from these it was agreed to update aspects of the access transport study. The Commission are at present considering the updated study and their response is awaited.
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