Dáil Éireann Debate, Tuesday - 26 July 2022
303. Deputy Paul Murphy asked the Minister for Transport if he will estimate the cost of nationalising the international passenger ferry network from Ireland to facilitate its expansion in the context of climate change and the need to reduce carbon emissions; and if he will make a statement on the matter. [41617/22]
View answerThe nationalisation of the international ferry sector is not in line with Government policy. As an Island nation, over 90% of Ireland's international trade in volume terms is carried by sea. An efficient and resilient maritime transport sector is fundamental to the successful functioning of the Irish economy. The best maritime transport model to meet the trading needs of our economy is one which is open and competitive.
The strength of the current competitive model has been demonstrated over the last two years. COVID-19, Brexit and the current Ukrainian conflict have posed enormous challenges to the sector. However, the sector has shown remarkable resilience, agility and ability to respond quickly to change.
At the end of the Brexit transition, Ireland saw a rapid and unprecedented reconfiguration of its traditional supply chains. New customs obligations drove a surge in demand for services on direct routes between Irish ports and mainland Europe. This re-organisation of Ireland's supply chains was made possible by the unprecedented response from the shipping industry in terms of increasing capacity to match market demand. Operators in both RoRo and LoLo markets responded to this demand in late 2020 by adding unprecedented capacity to these direct services. To put this in context, in 2019, Ireland had about 30 direct sailings to and from European ports. Today, there are over 60 direct sailings to the continent, and capacity continues to be added. Through all the recent challenges, Ireland's maritime sector has continued to underpin our economy by maintaining vital shipping links for both trade and tourism.
Proposals to address climate change are now at the forefront of transport policy across my department. From a maritime point of view, with the majority of trade to and from Ireland taking place through shipping, it is incumbent upon us to work to reduce the impact of maritime transport on the environment. This is being addressed domestically through the Climate Action Plan and internationally through the EU Green Deal and proposals being considered by the IMO.
Maritime Transport is a global industry operating between multiple jurisdictions. The most effective action to reduce carbon emissions from the sector can be found through international agreements at EU and IMO level. Considerable engagement has taken place at EU level in relation to the Fit for 55 proposals, in particular concerning the FuelEU Maritime, alternative fuels infrastructure, the EU Emissions Trading System, and the revision of the energy taxation directive. This basket of measures reflects the EU’s goal to cut greenhouse gas emissions by addressing the various barriers to the decarbonisation of the maritime sector. Ireland has given full support to these proposals, ensuring maritime transport plays its part in achieving climate neutrality in Europe by 2050.
