Dáil Éireann Debate, Tuesday - 6 October 2020
196. Deputy Darren O'Rourke asked the Minister for Transport if the emergency designation of five strategic maritime routes as PSO routes for a period of three months will be extended; if so, the Exchequer funding provided for 2020; and if he will make a statement on the matter. [28125/20]
View answerOn 7 April 2020, the Irish Government announced the temporary designation of five strategic maritime routes into and out of Ireland as Public Service Obligation (PSO) routes during Covid-19 for a period of up to three months. These routes were Dublin/Cherbourg and Rosslare/Fishguard, Pembroke, Cherbourg and Bilbao. The Government also approved the emergency provision of a maximum contribution of €15m toward the costs involved in the continued operation of passenger ferry services on these routes in the three month period.
The decision was based on the strategic importance of these routes for their contribution towards the robustness and resilience of Ireland’s lifeline supply chain transporting goods, including foods and medical supplies, in and out of the country. These routes also provide alternatives and maintain contingency options to the main route into and out of Dublin during COVID-19, thereby circumventing a single point of failure within Ireland’s maritime connectivity
The PSO Agreements provided that a review of the operation of the services be carried out after the first month of operation and every month thereafter. The reviews concluded that the PSAs delivered the desired effects, including the alleviation of uncertainty and supported strategically important elements of the national supply chain. Also, the stability they provided gave stakeholders in the maritime industry - shipping companies, ports, international hauliers, and various providers of ancillary services - sufficient breathing space to adjust their operations and finances to deal with Covid-19 threats.
With the gradual recovery of freight volumes and the commencement of a number of new services, evidence suggested that a market failure no longer existed to the extent experienced in March 2020. This being the case, in line with the Government Decision and following a review of their operation, the designation of these five maritime routes Dublin/Cherbourg, Rosslare/Fishguard. Pembroke, Cherbourg and Bilbao as Public Service Obligation Routes expired on 12 July 2020. The final drawn down from the PSO support scheme will be approximately €3.5m.
While freight volumes have recovered and the shipping sector has shown itself to be resilient during Covid-19, there is no doubt but that risks remain as the pandemic is continuing longer than originally anticipated. Passenger travel remains severely depressed and may not recover until well into 2021. In addition, the Brexit transition period is nearing an end with, as yet, no clear sight on a final trading arrangement with the UK. Mindful of these risks, my Department, together with the IMDO, is continuing to closely monitor and keep under review the evolving situation regarding maritime connectivity to continental ports, and will remain in close consultation with the maritime sector and other relevant stakeholders on this issue.
