Dáil Éireann Debate, Tuesday - 3 November 2020
292. Deputy Brendan Howlin asked the Minister for Transport his views on whether Ireland has the capacity post-January 2021 to have an uninterrupted continuation of the import and export of goods to continental Europe by sea; the analysis done by his Department on this issue; and if he will make a statement on the matter. [33658/20]
View answerAs has been signalled since the publication of the report ‘The Implications of Brexit on the Use of the landbridge’ by the Irish Maritime Development Office (IMDO) in 2018, there is likely to be disruption to the UK landbridge to the EU when customs and border controls between the EU and the UK are introduced, which is now due to happen from January 2021. Since the publication of the 2018 report, my Department, in conjunction with the IMDO, has been keeping the issue of direct shipping routes to Continental Europe under close review, including in the context of the COVID-19 pandemic.
Since early 2019 my Department together with the IMDO has consulted closely with shipping companies and other maritime stakeholders regarding the issue of direct maritime connectivity to Continental Europe. Shipping companies have assured my Department and the IMDO that they will respond to any increases in demand for direct maritime connectivity when border controls between the EU and the UK are introduced, and shipping companies have been adding capacity on routes to the Continent even during the COVID-19 pandemic in mid-2020.
The IMDO have very recently completed a review of the conclusions and recommendations in the 2018 Landbridge Study and, in particular, the issue of direct maritime connectivity to Continental Europe at the end of the transition period. The IMDO review confirmed that, at present, there is sufficient capacity on existing services in the RoRo network between Ireland and mainland Europe to cater, if required, for the landbridge traffic currently estimated at around 150,000 trucks per annum. The IMDO review will be published shortly. In addition, my Department in conjunction with the IMDO has recently completed a further round of consultation with shipping companies serving Ireland regarding the issue of direct maritime connectivity at the end of the transition period.
Given the spare capacity already available on routes from Ireland to Continental Europe and the spare freight carrying capacity of shipping companies serving Ireland and in the European shipping industry generally, identified by my Department and the IMDO, I am confident, including based on experience during the Covid-19 pandemic, that the shipping industry will respond quickly to any increase in demand for direct maritime connectivity to Continental Europe from January 2021 onwards. Any State intervention to provide direct shipping services in that context would be likely to undermine and disrupt a market response resulting in an insufficient, inadequate and costly intervention being put in place, legal challenges, and breaches of state aid rules with the requirement for repayment of any state aids provided with interest, with resulting adverse impacts on the viability of any shipping companies receiving such aid.
As set out in the Government’s updated Brexit Readiness Action Plan, published on 9th September 2020, businesses are being asked to consider moving, in advance of the end of the transition period, to direct route options for the movement of goods between Ireland and the Continent, to avoid potential delays and the new procedures that will be introduced associated with using the UK landbridge. Shipping companies should also continue to assess expected future demand requirements and remain ready to respond to increased capacity demands, and all the indications are that this is happening.
My Department, together with the IMDO, Department of Foreign Affairs and other Departments and Agencies has recently launched a renewed communications campaign, ACT, which encourages importers and exporters to focus on the direct route option now. The ACT campaign encourages stakeholders:-
- To Assess their current routes to market;
- To Communicate their future needs clearly to shipping companies, and
- To Trial alternative services so that disruption to the UK Landbridge route does not preclude Irish businesses from accessing foreign markets.
More information on this campaign can be found on the IMDO website here: https://www.imdo.ie/Home/site-area/news-events/be-prepared-brexit-act-and-prepare-switch.
My Department, together with the IMDO, is continuing to closely monitor and keep under review the situation regarding maritime connectivity to continental ports, and will remain in close consultation with shipping companies, ports, hauliers, and other relevant stakeholders on this issue.
