Dáil Éireann debate -
Wednesday, 12 Dec 2001

Vol. 546 No. 4

Written Answers. - Offshore Islands.

Jim O'Keeffe

Question:

34 Mr. J. O'Keeffe asked the Minister for Arts, Heritage Gaeltacht and the Islands her views on whether the cost of living and doing business on the islands is greater than on the mainland; and the support which is available directly to islanders towards such additional costs, in particular in relation to the transport of animals and goods. [28486/01]

Minister of State at the Department of Arts, Heritage, Gaeltacht and the Islands (Ms Coughlan)

While my Department has not as yet carried out any study of the cost of living on the islands compared to that on the mainland, I understand that the recently appointed development officer of Comhdháil Oileáin na hÉireann or the Irish Islands Federation, whose post is funded by my Department, is currently in the process of undertaking a study of the extra passenger and cargo transport costs associated with living on the islands, the results of which will be forwarded to my Department for consideration.

Notwithstanding the results of this study, over the past number of years, the Department of Arts, Heritage, Gaeltacht and the Islands has generally recognised that certain costs incurred by island dwellers are higher than those incurred by mainland residents. As a recognition of the extra construction costs incurred by islanders, my Department's new house grant available to eligible Gaeltacht islands applicants has been increased from £6,000 to £12,000 while the house improvement grant on Gaeltacht islands has been increased from £3,450 to £12,000. In addition, the Department of the Environment and Local Government's new house grant for the islands has been raised from £4,800 to £9,600. These increases have helped considerably in offsetting the additional costs incurred by island dwellers while constructing or improving their houses.

In relation to transport costs incurred by islanders, it is estimated that my Department will, in 2001, pay approximately £1.477 million in subsidies towards the provision of ferry and air services to the islands, of which approximately £740,000 relates to ferry services which transport goods in addition to passengers. The intended purpose of these subsidies is not to reduce the charges made by the relevant ferry companies for the transport of goods but to guarantee a scheduled service on occasions when it may not otherwise be profitable to provide one. It could be argued, however, that the subsidies provided by my Department have the indirect effect of reducing the cost of transporting goods, animals included, to and from the islands.

Another aspect of my Department's work is the co-ordination of Government policy in relation to the islands which is mainly done through the work of the interdepartmental committee for the islands and resulting bilateral contacts with other Government Departments. Among the objectives achieved through this forum and which have had the effect of reducing the cost of living on the islands are an extra £10 per week for pensioners living on the islands which was announced in budget 2000; a special rate of £52 in respect of road tax for island cars which was introduced with effect from 1 April 2001; the introduction by the Department of Education and Science since September 2001 of a significant increase, from £2,000 to £3,000, in the level of remote area boarding grant payable in respect of island children attending secondary school on the mainland.