Tá áthas mór orm, agus ar mo chomhleachaí, Mr. Colm Grogan and Professor Padraic O'Donoghue, deis a bheith againn labhairt ar an ábhar seo inniú. As the committee will be aware, Galway is a city of tremendous international renown as a centre of culture, the arts and tourism. It is also an important regional capital and economic hub, and is home to many major multinational corporations, most notably in the biomedical and ICT sectors. However, when it comes to transport, Galway suffers from an enormous infrastructure deficit. I am sure the members have all had difficulty at one time or another trying to navigate through our narrow medieval streets. With this in mind, a cross section of people consisting of academics, business people, engineers, architects, construction professionals and civic-minded Galwegians came together at a light rail workshop in 2007 which was hosted by the university, NUI Galway. It was agreed at that workshop that if ever a light rail was to come to Galway, it could only be good. Given that the city has a population of 80,000 and a hinterland population of 350,000, the challenge was always going to be to start thinking outside the box.
Even with city council partnership and the generous assistance of the department of engineering in NUIG, local architects, engineers, construction companies, with major Galway employers and multinationals such as Boston Scientific and Medtronic supporting us financially and physically, and with the encouragement of numerous organisations such as the Galway City Business Association and chambers of commerce, both local and American Irish, we cannot under estimate the significant contribution local Galwegians have given of their expertise to realise a better Galway.
Professor Lewis Lesley, a much respected expert in urban transport who spent many years at John Moores University in Liverpool and now of Trampower limited, carried out a series of studies over many months on Galway, its transport requirements and population movements and concluded to use an innovative LR55 track and light rail trams which Trampower has developed.
Research concluded that it was possible to have 21 km track travelling over a two route system: Route 1 from Briarhill in the east via the city centre to Bushypark in the north; and Route 2 from Cappagh Road in the west over the Quincentennial Bridge to the Dublin Road in the south. Provision for an integrated park and ride facility would also operate at the four terminal points. There would be seven minutes frequency at peak time and it would employ 75 persons and carry a minimum of 12,000 passengers per day. The RPA consider these figures as conservative. An affordable €2.50 average fare per journey would be charged. Being electrically powered by hydro and wind turbine would reduce the carbon output, help finance a sustainable business plan and reduce fossil fuel imports.
We are encouraged by the Government's stated policy that innovation is the route on which the country will depend to make a recovery from the dark clouds of recession coupled with the Department of Transport's smarter travel stated wish, that Europe looks to Ireland to learn how we solve our traffic problems. For these reasons, we have put most of our energies behind the Trampower proposition.
However, a second recognised tram supplier, Translohr, a French company with a tried and proven rail rubber wheel tram system that already operates in Clermont-Ferrand and Paris North in France, in Padua in Italy, and in Shanghai in China, has been to Galway and reviewed our strategy. Attracted by the cities linear shape and the information we have given it, Translohr also concluded a light rail was possible at a cost of €250 million.
Trampower is priced at circa €200 million due to its innovative nature. A very small section of this LR55 track has been operating maintenance free in Sheffield for more than 16 years. While it has many British certificates, the fact that a full system is not in situ has always been an argument given by doubters not to choose such a system. This cost also includes the infrastructure of sustainable energy, including wind and hydro stations.
We must still establish whether the Translohr system, priced at €250 million, will be viable for us or whether it will be too expensive. However, as construction costs and land prices continue to drop, along with further studies of our city, the Translohr or some other similar system of which there are numerous continue to be a possibility. It is clear both estimates still cost much less then the €700 million as suggested in a recent study conducted by MVA for Galway City Council.
Questions might be asked as to how we pay for this. In that context, we considered the three options. The first of these is the total public funding option. The Luas in Dublin received 100% funding from the Government. We accept that, without a shadow of a doubt, this is not the best time to seek such a funding. However, we are not proud and if it is provided, we will accept it. The second option we considered relates to public and private funding made up of a long-term loan from an institution such as the European Investment Bank, a Government grant and share capital from a major utility company. I suspect that the drawbacks I outlined in respect of the first option would again apply in this case. The third option relates to raising private funding through the provision of tax incentives.
In order not to waste a good recession, our preferred option would be to obtain a loan made up of funding provided from sources such as the European Investment Bank, business expansion schemes, tax allowances, VAT refunds and capital expenditure tax incentives for light rail which would be similar to those currently in place in respect of nursing homes, private hospitals and research and development opportunities. My colleague, Colm Grogan, who is a chartered accountant, will expand on these incentives during the question and answer session.
The proposal for a light rail tram system for Galway immediately brings to mind an image of the Dublin Luas system. The Galway Gluas light rail trams will look and will function on the street like Dublin Luas trams. However, and most importantly, the similarities with the Dublin Luas system will end with appearance and functionality. The Gluas for Galway differs radically from Luas in a number of ways: it will be an innovative rail system for Galway; there will be practically no need to make land purchases — CPO or otherwise — in Galway because the Gluas will share public carriageways; it will be financed through a private funding option; it will utilise the hydro and wind green power supplies in Galway; and there will be an assertive traffic management plan which will give trams priority over cars on the streets of the city.
Our analysis, which was compiled by Professor Lesley — by reference to population, locations and travel patterns — identified the two intersecting lines to which I have already referred. The MVA report has confirmed one of these lines — almost identical to that which we suggested — as meriting rapid transport corridor status and to be served by a dedicated rapid transport utility. We propose that the tram form the basis of such a utility. With the benefit of park and ride facilities, local green power supplies and the enormous penetration that interconnecting two lines provides, the case for the second intersecting line remains compelling.
The MVA feasibility study opted for the €122 million bendy bus option over a heavy duty Dublin-style Luas system. This was an option that we at Gluas never ever envisaged. We are informed that the bendy bus option is short-sighted because the vehicles used have a short lifespan of approximately five to six years and we want to pay for the solution once; it is noisy and creates pollution and does not, therefore, offer a sustainable green solution; it has a limited transport capacity, which could be potentially frustrating for passengers at peak times; and the limited turning potential of articulated buses make them unsuitable for Galway city centre.
While Galway City Council accepted the MVA report on rapid transit at its meeting in March, it also stated that light rail was the preferred means of transport. As a result of this endorsement, we have formed a partnership with Galway City Council's transport unit. Through this partnership we are currently exploring the exact impact the presence of underground utilities would have in the context of installing a light rail transit, LRT, system. The transport unit is also investigating LRT systems in other countries which might fit the profile and price relating to Galway.
In order to succeed, we cannot depend solely on the generosity of good-minded people. We come to seek the committee's help. Our preference is a system that incorporates some science, that will be innovative and in respect of which some research is needed. The proposal put forward by Trampower Limited would be one option in this regard. If we are to achieve what we are setting out to do, we will provide a model urban public transport system which will encourage a large number of car users to abandon their cars and use a carbon-negative mode of transport. We are seeking assistance in encouraging the Minister for Transport to instruct the RPA or any other relevant agency to work in partnership with us to bring a light rail system to Galway. I accept that this is a big ask. If we are correct, however, the RPA will be able to use Galway as a showcase and highlight its system as the Holy Grail of light rail for small cities. There is a major gap in the market in respect of such systems.
The mind boggles when one considers how many cities all over the world might require such a proven system. If the relevant trams, tracks and accessories were to be manufactured in Ireland, the level of good-quality, sustainable jobs that would be created could be measured in the hundreds if not the thousands. As members are aware, never before in the history of this State has there been a need for people to stand up and be counted. If others put together resources in the same way Galway City Council and Gluas have done, the rewards for everyone could be immense.
We are convinced that the growth of our region will depend on the step-change enhancement of our infrastructure. We have a great maritime tradition. In that context, the Volvo Ocean Race will return to Ireland in 2012. The exciting developments that are planned for Galway's port will not achieve their full potential in the absence of a quality transport system on land. I ask the members to combine their resources with ours and support our quest for tax incentives for light rail investment that can be ring-fenced. If they do as we are requesting, this will show what we can do together.
It is said that a picture tells a thousand words. Let me, therefore, show members our vision.
The joint committee viewed an audio-visual presentation.
