Dáil Éireann debate -
Wednesday, 27 Feb 2002

Vol. 549 No. 4

Written Answers. - Offshore Islands.

Jim O'Keeffe

Question:

36 Mr. J. O'Keeffe asked the Minister for Arts, Heritage Gaeltacht and the Islands her views on whether there are extra costs for those living and carrying on a business or farming on offshore islands; and her proposals to provide direct subsidy or support to those islanders to equalise their costs base with those living on the mainland. [6678/02]

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

While my Department has not carried out any study of the cost of living, running a business or farming on the islands compared to that on the mainland, I understand that the 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. However, 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 island applicants, has been increased from €7,618 to €15,300 while the house improvement grant on Gaeltacht islands has been increased from €4,380 to €15,300. In addition, the Department of the Environment and Local Government's new house grant for the islands has been raised from €6,094 to €12,190. These increases have helped considerably in offsetting the additional costs involved in constructing or improving houses on the islands.

In 2001, my Department paid a total of €1.84 million in subsidies towards the provision of ferry and air services to the islands. I should point out to the Deputy, however, that the intended purpose of these subsidies is not to reduce the charges made by the relevant ferry companies for the transport of passengers and, in some cases, cargo 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 passengers and cargo, farm animals and commercial goods 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. This is mainly achieved through the work of the inter-departmental committee on the islands and resulting bilateral contacts with other Government Departments. Amongst the objectives achieved through this forum which have had the effect of reducing the cost of living on the islands are an extra €12.70 per week for pensioners living on the islands which was announced in budget 2000, a special rate of €66 in respect of road tax for island cars which was introduced with effect from 1 April 2001 and the introduction by the Department of Education and Science since September 2001 of a significant increase, from €2,539 to €3,809, in the level of remote area boarding grant payable in respect of island children attending secondary school on the mainland. While considerable progress has been made in reducing the cost of living and of conducting business on the islands, it is my intention to continue to examine ways of making further progress in this regard.