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Dáil Éireann debate -
Wednesday, 23 Oct 2002

Vol. 556 No. 1

Adjournment Debate. - Rail Services.

I am glad to raise this issue. Some Deputies raised it in the Dáil already but I am glad of the opportunity to broaden our concerns. We are concerned about what is apparently a continuing closure, section by section, of all Iarnród Éireann's freight line business. It is being done under the current Government and was done during its last term of office.

Iarnród Éireann, if asked, will say that no lines have been closed and that everything is much the same. The reality, however, is clear. Even in the past 12 to 18 months the Kingscourt line has closed and the Ennis to Claremorris and the western rail freight line have seen no business. The Foynes to Limerick line has also closed to business and there is no freight business on several other lines.

There is deep concern following the closure of IFI. Following the review that Irish rail management is undertaking on the freight business it seems it is now looking at closing the North Wall depot in the centre of Dublin for general freight business. There will also be a discontinuation of line or freight traffic in Cork, Mallow and Tralee stations and the Limerick to Waterford freight line business will also be closed.

The problem is that this closure by stealth or by section is killing the possibility of freight line business and it threatens the whole rail network. A railway system needs a large volume of traffic if it is to work as there is such a heavy fixed cost involved while the marginal cost is relatively low. If we remove most of the train services on the lines, the viability of other freight lines and of passenger services come into question.

Any report on the matter will find that the reason so much is being invested in road haulage systems is that 90% of freight now goes by road. One of the reasons for that is the flexibility that road haulage brings, but another reason is the lack of investment and lack of faith in the service over the past 30 years. Not only has this Government but others over the years have failed in this area. I argue, however, that Fianna Fáil and the Progressive Democrats have shown particular disfavour to rail transport systems. They have not invested over the years and it is not surprising that we now have a situation where the usage of freight transport and of rail transport in general, compared to road based systems, is very low.

The national development plan, which was trumpeted by the former Minister for Public Enterprise, now Senator O'Rourke, predicted a whole new era for rail. The reality is that we are witnessing continual closure and reduction in the rail service. The Fianna Fáil election manifesto listed a number of rail crossings that were upgraded or signalling systems that improved safety on some of the lines from Dublin. There was, in reality, no strategic vision for how the rail network is developed. Now four years after the national development plan was negotiated and agreed the Minister is talking about getting a strategic rail plan in place. That is a sign of lack of vision for rail-based transport.

It is urgent that the Minister clarifies his position on this issue. The Government does not want Iarnród Éireann management to fund a rail-based freight system. Iarnród Éireann believes that funding will not be available. The Minister will wash his hands and say it has nothing to do with him but that the board of Iarnród Éireann must decide. Ultimately, the Government is the shareholder and it has the ability to say whether it wants the country to follow the policy set out in the European White Paper on Transport which promotes a return to rail-based freight transport systems.

I am keen to hear the Minister's view on the possible closure of the North Wall freight handling yard, his view on the possible closure of the Cork, Mallow and Thurles freight services and on the Limerick to Waterford freight services.

As was indicated on the Adjournment debate last night, the Minister understands that the management of Iarnród Éireann is carrying out a review of the implications for its rail freight business of the loss of revenue associated with the closure of IFI. The closure of IFI, which was the third largest customer of freight services from Iarnród Éireann, has resulted in serious loss of business and revenue. The current review of rail freight is the normal business response, which could be expected from a commercial organisation responding to the loss of a major customer. This is against a background where it is projected that rail freight will lose approximately €14 million in the current year, with the company as a whole incurring an overall deficit, after subvention, estimated at approximately €25 million.

The Minister is seriously concerned about the current trading position of Iarnród Éireann, in particular given the significant subvention received by the company – in excess of €150 million in the current year – and the increases in State support over recent years. He has received proposals for significant fare increases from Iarnród Éireann and the CIE bus companies in response to their deteriorating financial position. The Minister is considering these applications in the context of the need for reform within public transport generally and he hopes to be in a position shortly to respond to those proposals.

The Minister understands that Iarnród Éireann is examining all the major loss-making areas of its business with a view to rectifying its serious financial position but he is informed that the board of CIE has not yet reached any final conclusions in this regard. In addition the strategic rail review, currently under way, will examine the long-term rail requirements for the country as a whole in the light of the emerging spatial planning and regional development policies and local land use and transportation studies.

This review encompasses both rail freight and passenger services and will cover urban commuter and inter-regional services. The future of rail freight needs to be considered in the context of sustainable economic policies and the commercial viability of rail freight operations. The review is due to be completed by the end of this year. Therefore, the Minister expects decisions on the future of rail freight to be taken in the context of the strategic rail review in the long-term national economic interest and the interest of Iarnród Éireann.

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