Vol. 545 No. 1
36 Mr. D'Arcy asked the Minister for Public Enterprise if EU funding is available for the reopening for passenger and freight services with a view to reopening railway lines; and if she will make a statement on the matter. [29714/01]
41 Mr. Broughan asked the Minister for Public Enterprise her views on the decision taken by Iarnród Éireann to reduce its freight business by half; and if she will make a statement on the matter. [29818/01]
43 Mr. M. Higgins asked the Minister for Public Enterprise if officials from her Department were consulted on the decision by Iarnród Éireann to reduce its freight business by half; and if she will make a statement on the matter. [29815/01]
44 Mr. L. Burke asked the Minister for Public Enterprise if, as the main shareholder in CIE-Iarnród Éireann, she was consulted regarding the decision to close the Kingscourt to Tara Mines railway service; and if she will make a statement on the matter. [29683/01]
50 Mr. J. O'Keeffe asked the Minister for Public Enterprise her views on whether there should be greater rather than less transport of freight by rail; and her policy approach in this regard. [29675/01]
64 Mr. Rabbitte asked the Minister for Public Enterprise if she has received proposals from Iarnród Éireann on the subvention of unprofitable freight business; and if she will make a statement on the matter. [29811/01]
68 Mr. Bell asked the Minister for Public Enterprise if she was consulted on the decision by Iarnród Éireann to reduce its freight business by half; and if she will make a statement on the matter. [29814/01]
86 Mr. Deasy asked the Minister for Public Enterprise her views on the announcement by Iarnród Éireann that the amount of rail freight is going to be halved; the implications this will have for the road network system; and if she will make a statement on the matter. [29789/01]
I propose to answer Questions Nos. 36, 41, 43, 44, 50, 64, 68 and 86 together.
The review group, comprising Mr. Bill Attley, Mr. John Dunne and Mr. Kevin Bonner, which reported to me on 4 July on Iarnród Éireann: The Way Forward indicated there are major questions to be addressed with regard to the future of the rail freight business.
The review group set out a number of arguments in favour of, and against, retaining freight services generally. In this regard, it recommended that a special and thorough study of the issue be commissioned as a matter of urgency. In addition, the review group suggested that long range plans needed to be established for the rail sector as a whole.
I am aware that the boards of Iarnród Éireann and CIE are considering a business plan for the rail freight sector for 2001-06 arising from commercial losses being incurred. They have forwarded a copy of the plan to me for my information and are in the process of discussing it with the trade unions. I understand no decisions have been taken. The reply is identical to my earlier reply to Question No. 30.
Apart from the group the Minister mentioned which is in consultation with CIE and Iarnród Éireann, has the Government any intention of putting forward proposals to CIE to reopen the freight lines which were recently closed? Gypsum has used the Kingscourt line for 106 years to transport cement products to Drogheda. This freight is now being carried by road at enormous cost. Is the Minister aware that Iarnród Éireann spent a fortune in the past two and a half to three years repairing and upgrading this line, at enormous cost to the taxpayer, with people being employed at weekends? I hope the Minister will outline the Government's response to this matter because we should use these lines and keep freight off the roads in the interests of saving people's lives.
The details of the upgrading of the line in question were annotated in the IRMS safety review study which outlines necessary work on an annual basis at a cost of £100 million to £120 million per year. CIE carried out that work, which generated decent employment, in accordance with the findings of the IRMS study. I had a similar exchange with Deputy Jim Higgins on this matter earlier. It seems wrong that one would take freight from rail lines and put it on roads which are already crowded.
Iarnród Éireann incurred losses of £6.4 million on freight services as a result of which it has prepared a draft business plan, the contents of which have not yet been fully discussed or agreed. I agreed to a large extent with the comments of Deputy Higgins. It should be possible for Iarnród Éireann to consult individual businesses on this matter which would surely see the merit of transporting goods by rail rather than by road. I hope this approach will be adopted. Even though the Government has not taken a formal decision on this matter, its view is that it would be preferable to transport goods by rail rather than by road.
Is the Government prepared to subsidise Iarnród Éireann?
The Government provides a large annual subsidy to the company.
I welcome the Minister's assertion that it is preferable from an environmental point of view to transport goods by rail rather than by road. Does she accept, however, that it is actually cheaper to transport by road because environmental costs and the cost of damage to roads is not taken into account by the road users? Does she further accept that Government policy, in particular her own policy, informing Iarnród Éireann that it should be profitable has resulted in its having to close 46% of its freight service business?
Since taking office, neither I nor the Government has issued such a direction to Iarnród Éireann. When I took office, the CIE subsidy was £103 million and the figure has now increased to £200 million. Obviously, it is desirable that a company would operate in a proper and business-like manner. The only plan I saw in this regard was a viability plan put forward by the former Minister with responsibility in this area, Deputy Lowry. The report, which comprised 24 pages, was discussed at length during a committee sitting.
I hold the view that public transport should be properly funded and, to that end, the Government has poured huge reserves into public transport. One does not wish to pour £200 million into a black hole and hopes that the company would operate in a business-like manner. As I said earlier, the subsidy has almost doubled, not unlike that provided for health services. Iarnród Éireann provides a good service. Some £6.4 million was lost last year in the area of freight services—
The figure is £6.7 million.
—and it is for CIE to decide how to allocate its subvention, which is due to increase in 2002, to its various constituents. The doubling of the subvention is a huge increase. I did not issue any order to Iarnród Éireann to the effect that it should operate in a viable manner and I did not read Deputy Lowry's plan because I thought it was dotty.
The Minister stated that the doubling of the subvention is similar to what has happened in regard to health services. It is exactly the same in that money has been provided but consumers have not seen services delivered on the ground. We now hear about further plans—
I remind the Deputy that five Deputies are offering and replies are to be taken individually rather than on a composite basis, in accordance with Members' wishes.
Many EU countries provide a specific subsidy for the transport of freight by rail. Does the Minister agree a similar subsidy should be put in place here? The Minister did not outline whether EU funding is available in this area. Will she consider re-opening the Mullingar to Athlone line to develop a proper commuter service into Athlone?
What a heroine I would be if I could achieve that.
The Leas-Cheann Comhairle would be pleased if the Minister could open the other line as well.
There is no European money available specifically for freight. The Deputy is asking if a subsidy could be given to CIE to be ring-fenced for freight. A subsidy of £200 million is, by law, given to CIE and the company divides the money as it sees fit.
The Minister will be aware of the recent EU White Paper which allows the Government to give specific State aid to rail freight.
Yes. I thought the Deputies were asking about European aid.
It allows the Government to give specific State aid to rail freight. All other member states are now operating specific state aids for rail freight, for environmental and health reasons.
As well as for reasons of road safety.
Given the system we are operating now we have the second lowest rail freight use in Europe. I agree the Minister inherited most of this system but she has been in office long enough to have done something about it. Will the Minister look at the possibility of having ring-fenced State aid available to encourage private road users to transfer to rail?
I will certainly pass on the views expressed in this debate to the chairman of CIE and I will advise him that a portion of the £200 million should be ring-fenced for freight.
That would be robbing Peter to pay Paul. The Minister can allocate it.
My question relates to the re-opening of the rail link to Midleton When will the feasibility study into this be completed, how soon after that might the work on the rail link begin and when might the line open? What role has the Minister for Public Enterprise in making decisions on this matter?
A question has been submitted on that matter and it will be answered. I have not yet replied to Deputy Naughten, who asked about the Mullingar line.
I will return to Deputy Stanton, he should not look so injured. I will not leave him abandoned.
May I return to Deputy Naughten's question?
I call Deputy Enright.
The rail line from Ballybrophy, through Nenagh and Roscrea to Limerick is a very important line for passengers and an essential service for people living along the route. Will the Minister assure the House that a freight service will be continued along this line? There is considerable concern about the future of this service and of the line.
That specific line is not mentioned but I will contact the Deputy with the information he requires.
Does the Minister agree she is being too apologetic about her role as Minister in charge of Iarnród Éireann, that since she is the shareholder, on behalf of the Irish people, with the power to appoint directors her job is to outline policy? Does she agree with the policy of taking freight off our roads and transferring it to the railways? If she agrees with this policy will she, as the only shareholder and having the power to appoint directors, ensure that the policy is implemented?
The Deputy was not in the House earlier when I answered Deputy Higgins's question on this matter. I agreed with Deputy Higgins that—
Why does the Minister not do something about it?
The Deputy asked a question. Will he allow me to answer it? I answer as I answered Deputy Higgins's question. It is my belief that freight is much better carried by rail than by road.
Deputy O'Rourke is the Minister. Why is she apologising?
I am not apologising to Deputy Barrett.
Will the Minister request CIE to re-open the freight lines between Kingscourt and Drogheda?
I will, as Minister, inform the chairman of CIE of today's debate and of my belief that freight is better carried on rail than on road.
Who is in charge?
Written Answers follow Adjournment Debate.
