Dáil Éireann Debate, Tuesday - 7 December 2004
106 Mr. Cuffe asked the Minister for Transport if he will consider introducing support mechanisms for rail freight transport such as exists in other European countries, for example, the direct subvention of rail freight or the provision of tax exemptions for every kilometre of road freight transport that is diverted to rail. [32395/04]
View answerIarnród Éireann has restructured its rail freight operations in recent times to refocus on the more profitable elements of rail freight and seek out new business in those areas where the rail mode is best suited to the traffic. I understand from the company that it has had some success in this regard and that its efforts are continuing. To date it has reduced the deficit on freight operations and has achieved this significant improvement by rationalising its network and handling costs as well as targeting the trainload business, such as pulpwood and point to point container traffic.
Iarnród Éireann receives significant funding annually from the Exchequer by way of capital grants and subvention towards operating expenditure. Such funding has been increasing annually in recent years and the company has succeeded in improving its overall financial performance.
The Irish Exporters Association and a number of interests involved in the freight sector have recently made representations to me suggesting the provision of subsidies to private sector business for using rail. While I have no additional funds at my disposal for the provision of subsidy for rail freight, I am considering these representations in the light of funding generally available for rail transport, the potential for the development of rail freight and taking into account EU requirements in the matter.
