Dáil Éireann Debate, Tuesday - 2 April 2019
1. Deputy Robert Troy asked the Minister for Transport, Tourism and Sport if he will address the recent announcement that Dublin Port will be significantly restricting the number of cruise ships which can enter the port and the negative impacts this will have on tourism; and if he will make a statement on the matter. [15461/19]
View answerWill the Minister for Transport, Tourism and Sport address the recent announcement by Dublin Port to significantly reduce and restrict the number of cruise ships which can enter the port between 2021 and 2023, along with the negative impact this will have on the tourism industry?
I am keen to mitigate any adverse effects that Brexit or other factors may have on the tourism industry, including cruise tourism. With these concerns in mind, I met with the Dublin Port Company recently regarding its capital development plans and rationale for prioritisation in the context of Brexit, as well as the specifics with regard to cruise berths.
At the meeting, Dublin Port outlined the ambitious development programme under way to provide additional cargo handling capacity to cater for our growing economy. Given space constraints, it was explained that cruise berths will have to be limited for a period from 2021 onwards to allow this construction work to take place, while ensuring the port can continue to handle large cargo volumes. It is expected the period of disruption will be two to three years and will impact on three cruise seasons.
Nonetheless, Dublin Port confirmed it will operate a full cruise season in 2019 and 2020. Although the subsequent temporary reduction in berths available to cruise calls is regrettable, the company intends to build cruise calls back to 150 ships for the 2024-2025 season. The company is also considering the potential for a significant additional investment which would increase capacity for cruise liner berthing to over 200 ships. Consideration of that investment is at an early stage and would be conditional on some factors outside of Dublin Port's control, such as securing the necessary finance and securing long-term guarantees from the cruise industry.
With regard to the wider tourism industry, in my meeting with the company, I emphasised the need for the Dublin Port Company to take account of the broader impacts of its commercial decisions. This includes the effect on sectors supporting the cruise tourism industry or serving cruise visitors, not just in Dublin but in other ports and associated regions. While Dublin Port is important in attracting cruise liners to Ireland through Dublin, the benefits that accrue to other ports around our coast are significant.
In the meantime, Cobh continues as a dedicated cruise berth and will remain so post Brexit. The Port of Cork is working with Belfast Harbour to see if it can take some of the additional business which may be lost as a result of Dublin Port's infrastructural works. In addition, Fáilte Ireland continues to support the development and promotion of the cruise tourism sector.
There is significant concern in the industry because of the 50% reduction in the number of cruise ships that will come into Dublin Port, as well as the reduction in their sizes. The stakeholders claim there was very much a lack of information given to them on this point. I accept there are capacity issues at the port because of the significant growth in its freight business. That in itself must be welcomed. However, it should not be to the detriment of the leisure cruise industry.
While freight might be more profitable for the port, the company has a responsibility to ensure key tourism sectors are protected also. Last year, 442,000 visitors on cruise liners came to Dublin which contributed €50 million to the economy, not insignificant by any manner or means.
I know from an interview on “Morning Ireland” that the Minister met with the chief executive officer of the Dublin Port Company last month. Does the Minister meet regularly with the company on its growth and needs, given its centrality to the economy? Was he aware of this announcement in advance? Has he met with the key stakeholders and representative group of the cruise line industry? The Minister said this will only be a temporary arrangement and that a significant investment will be made. He also made the point that no funding has yet been secured for that investment, however.
The Deputy’s time is up.
How can the Minister be sure this significant investment can be made when the resources are not allocated for it?
I was taken somewhat by surprise by this announcement and did not expect anything quite so immediate. I have responded to it by bringing in the chairman and the chief executive of the Dublin Port Company. Since becoming Minister, I am a regular visitor to and frequently keep in touch with the company, as do my officials. There is no lack of communication normally.
The chief executive has made it quite clear that this is a temporary blip. There is no intention that the reduction in the number of cruise ships will last for more than two years. It is expected the numbers will go up subsequently. For 2020, bookings are already at 140 and it will hit a new peak this year.
If the Minister is a frequent visitor to Dublin Port but was taken by surprise by this announcement, is he just looking at the seagulls there?
This announcement will have serious consequences for the leisure industry. Will the Minister give a commitment that he will meet the industry? Will he also give a commitment that this decision will be reviewed? The shipping freight industry is important, particularly with Brexit. Will he ensure it can work together with the cruise industry in the short term while this investment is made?
The Minister acknowledged that in order for the port to be able to cater for the ships docking in it now and to increase that capacity, it will need a significant infrastructural investment. Are the resources for that investment ring-fenced? If not, how can the Minister be confident that this will be a blip and a short-term problem?
The port has shown a great commitment to the cruise industry and cruise liner numbers have been rising. The Deputy is well aware of the pressures of freight and cargo on Dublin Port. It is not a matter of making a choice of one or the other. It is about ensuring cargo is secured and there is enough space for it.
I was surprised by the timing of this particular announcement, although people were aware of it brewing. A significant investment in the port is needed. The company has made it quite clear that it will be looking to the cruise industry to contribute towards that investment if it is going to complete the necessary construction to bring numbers up from 160 to 200 liners. The company predicts confidently that it would be possible if the investment were forthcoming. I am also confident it is forthcoming because Ireland has a great future in this regard.
On cruise tourism, the Deputy asked about stakeholders. I have already asked the main stakeholders to come to a meeting in about two weeks' time to discuss the matter raised by the Deputy in the broader national interest.
