Vol. 403 No. 5
4 Mr. G. Mitchell asked the Minister for Tourism and Transport whether approximately 125,000 container loads are picked up in the State and exported to Britain via Northern Ireland ports; if he will outline his views on this situation; and if he will make a statement on the matter.
The statistic quoted by the Deputy is an estimate published by Dublin Chamber of Commerce in their February 1990 report, "Corridor to Competitiveness". They estimate that some 125,000 units of unitised freight whose natural market is the Central Corridor travels via the Northern Corridor. I accept this figure as a reasonable estimate. I would point out to the Deputy that it relates to both imports and exports.
This diversion of traffic is attributable to a number of interwoven factors which operate in favour of the Northern ports, including shipping costs, frequency and capacity of shipping services, port charges, lower costs of Northern Ireland hauliers and so on.
We have begun to tackle some of these problems through a major programme of investment in transport infrastructure agreed recently with the EC in the context of an operational programme on peripherality. This will be published shortly. In addition, the Government in conjunction with Irish export interests, are continuing to press the EC for assistance in financing mobile asset investment to offset the cost disadvantages which our unique peripherality and island nation status imposes on Irish exporters.
This is the time for priority questions. I have only one question but I am entitled to have three. One question was disallowed. I hope the Chair will allow me extra time on this question.
If the Deputy gets extra time, will that interfere with my time as I also have put down a question?
The Chair will deal with such matters. I must be careful not to create a precedent in respect of priority questions.
Is the Minister aware that port charges in Larne are 30 per cent lower than they are in the Republic and ferry costs in the Republic are 204 per cent higher than they are in Northern Ireland? Something of the order of 125,000 containers are collected as far south as Cork each year, moved up North and via Larne, Warrenpoint and Belfast shipped across the Irish Sea and on to London at a cost that is more economic than using the central corridor through Dublin. In view of that, and of the loss of £56 million to the Exchequer, would the Minister consider that it is long past time for reports? It is time for action. It is time an investment was made in Dublin Port and that they were made get their costs down.
I want to assist the Deputy elicit information but he may not embark on a speech.
It is vital that the B & I be kept viable to ensure competition.
The Deputy has made his point adequately.
There has been no increase in the rates for freight in Dublin since 1 April, 1988 and a cut of almost 40 per cent in cargo dues for driver accompanied roll on/roll off vehicles has been in place since 1 January, 1990. I share the Deputy's analysis of the problem and would welcome, as I always have, hearing from him on some specific solutions. A new dual carriageway is due to commence in 1993, partly in tunnel form from Whitehall to Dublin port. That will be a £100 million roadway and over £1 million is to be spent on the existing rail link within Dublin Port. In the Northern corridor in Larne, there are 17 daily sailings compared to eight sailings from Dublin. I have asked SKC in the access study report to advise on how best to get more capacity on the Irish Sea. I am aware of the lower vehicle excise duty that pertains in the UK. I am sure no one has a magic solution for our higher rates of indirect tax but I would welcome ideas on this.
Port charges in Larne are 30 per cent cheaper. Dublin Port had to borrow £17 million since 1975 whereas Larne received £4.2 million from the EC and a further £1.3 million from the British taxpayer by way of grant. That militates against Dublin Port. The Government should come to the assistance of Dublin Port and ask the EC to assist them in the same way they assisted Larne.
It is not just investment in Dublin Port. There is investment, as I pointed out, in roads and railways. It is the frequency of sailings which has to do with the financial state of shipping companies. As the Deputy knows, I am considering options for B & I at the moment and I want to deal with that matter sensitively and as quickly as possible and take into consideration all the views put to me. It is not just Dublin Port that is affected. I have already pointed out to the Deputy that Irish hauliers have to pay higher excise duty, and there are additional costs involved in that operation.
A Cheann Comhairle——
It must be a very brief question, Deputy. I am going on to another question.
May I ask the Minister if he accepts that a viable B & I operating on the Irish Sea is absolutely essential to ensure competition? Does he accept that, for instance, an operator in the midlands exporting a container to London can save 12 per cent per container by sending it through the circuitous route of Northern Ireland rather than through the central corridor, which is more logical?
With respect, the Deputy has asked two questions. I had expected that he would put down a question on B & I.
I did put down a question but it was disallowed.
Now that the picket is at the gate the Deputy has chosen to raise the matter by other methods. As I have already said, I will be dealing with the B & I position sensitively and as quickly as possible. I am aware of the excellent work done by management and staff in trying to hold the company together. They have my full support in trying to forge a future for the company, and I do not rule out any option. I have set up a liaison group with the trade union movement and we meet regularly to discuss the issues in B & I. We are dealing with that matter urgently and, I hope, sensitively.
Does the Minister accept the figure of 12 per cent?
No. 5, Deputy Eric Byrne's question.
