Vol. 429 No. 6
30 Mr. O'Malley asked the Minister for Transport, Energy and Communications whether he has satisfied himself that Irish air fares and sea fares are competitive for tourists; his views on whether further improvements can be made on tourist access to Ireland; and if he will make a statement on the matter.
The level of air fares available to tourists for travel to Ireland is generally competitive with those in countries with whom we compete in international markets. Despite increases in air fares since the Gulf War, average yields from air fares to and from Ireland are generally still below their levels of 1985-86.
Ferry operators have responded to the challenge of lower air fares in recent years by offering attractive fares incentives and successfully developing their niche in the car market.
With regard to access arrangements, investment in roads, rail, ports and airports under the Operational Programme on Peripherality is designed to improve transport infrastructure.
The provision of modern facilities and adequate capacity will facilitate increased competition among operators which will help to bring down fares for tourists. Also, in the interest of tourism development, I am committed to pursuing the improvement of air links to and from Ireland. Ireland now has air transport agreements with 19 states apart from EC member states and discussions about new or revised air agreements are being sought with a number of other states, including Australia and Japan. Irish airlines are also pursuing interline agreements with other carriers with the object of improving access between Ireland and the rest of the world.
These developments on improving access arrangements are in line with the objectives set down in the Programme for Government.
The Programme for Government also states that grants will be sought for access transport, especially mobile assets, with special reference to investment in direct shipping services to continental Europe. Despite the negative reaction from the European Commission, who are concerned about the effects such aid might have on competition, the Irish Government will continue to press for aid with a view to improving the quality and competitiveness of these important external links. While the main purpose is to improve access to international markets for trade, any improvement in multi-purpose ferry services would also benefit tourism.
Is the Minister aware that the cost of fares to Ireland for tourists from certain continental countries, particularly Germany, is between two and three times the cost of access from the same country to Spain and Portugal, even though the distance from, say, southern Germany to southern Spain is the same as it is from Southern Germany to Ireland? Is the Minister further aware that these extremely high fares seem to exist on most continental routes where there is no competition? Will he take steps to ensure that air fares to Ireland are brought down to a level that is reasonably consistent with similar fares in other parts of Europe?
Since 1 January 1983 it has been open to any EC airline to operate a service to and from any country in the EC. The Deputy claims that at present there is no competition in regard to Irish routes, but other airlines may operate on those routes if they so wish. Subject to those airlines meeting the usual safety requirements I have no discretion in the matter. The usual approval would be given by my Department in that instance.
Is the Minister prepared to countenance the continuation of a position in which fares to this country, even for tourists, can be as high as £400 from relatively close parts of the European Continent? Does he not realise that while fare levels of that magnitude continue we will not attract significant numbers of tourists from those countries?
I am sure the Deputy will accept that it is up to each airline to decide the level of its air fares having regard to whatever competition exists. If no competition exists, presumably it will make a judgment based on the volume of transport it wishes to carry. Since 1984, when liberalisation in this area began under our EC Presidency, we have been successful in attracting more tourists. We would welcome other airlines who may wish to operate in and out of this country in order to provide consumers with the best possible deal. We are no longer in the regulatory business. We now have a liberalised air transport regime in Europe and it is a matter for the market to decide what routes are to be served.
Will the Minister agree that one of the factors inhibiting air transport competition in Ireland is the high cost of landing charges at Irish airports? Will he indicate what he proposes in that regard as that area comes under his control? Will he confirm also whether Irish ferry operators have contacted his Department expressing concerns about hidden subsidies to their competitors on the Irish-French routes deriving from ships being made available by consortia which seem to include local chambers of commerce in France? They effectively supply the ships on a subsidised basis in order to gain competitive advantage for the ports in which they are located.
Instances of unfair competition, whether in regard to sea or air transport, are brought to the attention of the relevant authorities at EC level. We have been notified of that position and are taking the necessary action. Our landing charges are reasonably competitive, taking into consideration all other landing charges throughout Europe. That matter is continually monitored in my Department.
Will the Minister agree that our landing charges are the third highest in western Europe?
If the Deputy tables a question in that regard, I will supply the information he requests.
Is the Minister saying he does not know whether landing charges here are the third highest in Europe? Why does he not have that information available?
If the Deputy conforms with the proper criteria, I will give him the information. All I know is that the Deputy's party is the third largest one at present.
By what criterion is the Minister making that judgment?
Deputy Cox's criterion is the opinion polls.
Is the Minister taking Question No. 39 with Question No. 30?
Question No. 39 was dealt with earlier.
May I ask a supplementary question in regard to Question No. 30?
My concern in Question No. 39 was to ensure continuous contact with mainland Europe through our ferry service, both from a trade and tourism point of view. I am somewhat upset to hear the Minister say that, as a result of the Single Market, it is now open to free competition. Will the Minister not agree that it is vital for trade and tourism that we ensure both a ferry and air service operate to most European countries to export goods and to bring people, particularly tourists, into the country? We cannot leave it up to the market to decide whether tourists come here. Surely the Government have a role to play in guaranteeing a service to and from Europe, particularly having regard to our location on the periphery.
As I stated earlier, we are continuing to make representations to the Commission in regard to seeking EC aid for access transport. We have been unsuccessful to date as have previous holders of this office. The Commission has taken a certain view on this matter. The two applications we have made have been unsuccessful but we will continue to pursue the matter. I accept that, following the completion of the channel tunnel, we will be the only island nation and that such short sea shipping routes will be even more important to transport our exports to the market.
