Austin Deasy
Ceist:12 Mr. Deasy asked the Minister for Tourism and Transport if he intends to liberalise both passenger and freight road transport; and if he intends to introduce legislation for such measures.
Ceisteanna — Questions. Oral Answers. - Passenger and Freight Transport.
I am in the course of completing my consideration of all the issues associated with the update and replacement of the Road Transport Act, 1932, including liberalisation of bus passenger transport services. I hope to have the Bill published and circulated as soon as possible.
In relation to road haulage, the Road Transport Act, 1986, finalised the liberalisation process governing access to the market. Road freight carrier's licences, unrestricted as to area of operation, types of goods carried and number of vehicles operated are freely available to all applicants who satisfy the requirements of good repute, appropriate financial standing and professional competence, laid down by the EC for access to the profession of road haulage operator.
Can the Minister tell the House if he will be publishing the legislation before Easter or before summer? Is he aware that 125,000 units are carried northwards each year by northern carriers at a loss estimated, on the basis of the most recent estimates, to the Exchequer of £56 million per year? Is he aware, therefore, that under the proposed changes in the cabotage rules we could be left without a freight industry in the Republic if he does not act soon on this matter? Therefore, I impress on him the need to publish the legislation before Easter.
The legislation in question has to do with the liberalisation of bus passenger transport services. It does not deal with freight. We have already dealt with that. There is substantial freedom of movement with freight. I aim to publish the Bill by summer but as I have already said at a number of public functions I held back the publication of the Bill because I want to inject a greater degree of liberalisation and a greater degree of competition into the bus business in the State.
Can the Minister tell the House when he intends to act to save the road freight industry since it is in a perilous state?
I reject the notion that the road freight industry is in a perilous state. The road freight industry has been liberalised. I recently met various representatives of the industry and, as the Deputy is aware, they do have costs which their counterparts in Northern Ireland do not have — excise duty on petrol and trucks and insurance costs——
Fifty-six million pounds.
——which are additional and in excess of those of their northern counterparts. Various steps are being taken to reduce all of those, not least the tax harmonisation proposals of the European Community. I would encourage Irish hauliers to seek out business throughout the Community because the Community is now opening up for road freight transport. When they put their mind to competing they are exceptionally good at it. The costs are gradually being reduced.