Written Answers. - Transportation Policy.
Deirdre Clune
Ceist:
159
Ms Clune
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the terms of reference of a report commissioned by Forfás to examine the need for reform in road, rail and air transport; when this report will be published; and if she will make a statement on the matter.
[1798/00]
In its annual competitiveness reports for 1998 and 1999, the national competitiveness council – NCC – discussed the topic of regulatory reform and its impact on competitiveness.
The work of the council focused initially on the general principles that should apply in regulatory reform, as well as an assessment of the existing regulatory framework for enterprise in Ireland and the identification of broad sectors for further examination. Two sectors, transport and business services, were identified for more detailed examination because of their links throughout the economy.
In September 1999, following a competitive tendering process, Forfás on behalf of the NCC, commissioned research on competitive changes in the transport sector from Peter Bacon and Associates. A copy of the consultant's terms of reference is set out at Appendix 1. The study focused on several aspects of the transport sector including road freight services; air transport services; ports and sea transport services; and surface passenger transport.
The consultants have finalised a report that reviews competitiveness in the different parts of the transport sector and makes recommendations on how regulatory reform could improve competitiveness in areas including infrastructure provision; internal surface passenger transport; air and sea ports; road freight services; and information requirements to allow ongoing monitoring of the position. This report is not expected to be published in its own right, but is intended as an input to a draft competitiveness council statement on regulatory reform, covering the economy as a whole, for the consideration of the council. In preparing this, Forfás will draw on several studies carried out including transport, business services and comparative institutional frameworks.
APPENDIX 1
Terms of Reference for the National Competitiveness Council
Study on Regulatory Reform in the Transport Sector.
1. Background
Regulatory reform in Ireland is a priority for enterprise policy, and is essential for competitiveness. There are a number of reasons for this:
Many of the traditional instruments used by Government to encourage enterprise are no longer available, because of EU rules, EMU and other international agreements.
Other countries have been placing considerable emphasis on regulatory reform, including many of our close competitors, because they see it as a way to improve competition, to increase the efficiency of markets and promote the interests of consumers.
Changes in the regulatory system in Ireland have been fragmented, undertaken in response to EU directives or associated with particular privatisation issues.
In Ireland no comprehensive review has been undertaken of existing regulation and its effects, and no statement exists of the principles to be followed in the future.
Regulatory reform amounts to a redistribution of costs and benefits of the existing system. These costs can be substantial. However, the cost of the reform itself is usually low, and the return on the "investment" can be very high.
Forfás, the industrial policy advisory board for Ireland, is undertaking research on regulatory reform and the kinds of policy changes needed in Ireland to improve competitiveness. This work is intended to provide inputs to the National Competitiveness Council, and to assist policy makers in preparing decisions in this regard.
Initial work has been undertaken by Forfás that covers the following aspects: 1. the arguments for regulatory reform; 2. principles of policy to be applied; 3. regulation in Ireland; 4. summary of sectoral regulation; 5. mechanisms for regulation and 6. recommendations.
Among the recommendations of the initial study is that more detailed analysis be undertaken of the regulatory position with regard to key sectors of the economy. Through linkage effects, a number of other sectors are affected by their operations. The purpose of the present study is to undertake detailed analysis of a sector with a view to deriving policy conclusions. Attention in the study should focus on activities within the sector where regulatory reform is likely to improve competition.
The inland transport service sector is defined as railway transport services and associated services; local transport services, including underground railways, tramways and regular bus services; long distance road transport services for passengers; long distance road transport services for merchandise; services of transport by pipelines; land-borne transport services (funicular railways, cable cars, chairlifts) and inland waterways services. In addition to these, the study should also cover regulatory reforms for Ireland in air services, air ports and sea ports.
2.Outputs
The contractor will prepare a report covering the following topics:
Economic overview of the sector: this will describe its size, structure, linkages, employment and ownership, contribution to GDP, and productivity trends.
Existing regulation of the sector: this will summarise the principal legislation covering the activities of the sector.
Institutional aspects of regulation: this will include an overview of the nature, composition, and operating methods of the institutions concerned with regulation of the sector. Self-regulating bodies and associations should be included as appropriate, as well as a commentary on the nature and extent of communications between the economic actors concerned and Government.
Diagnosis: an assessment of the need for improved regulation of the sector based on the need for improved competition, especially in so far as it would lower prices, improve quality and increase choice of services.
Recommendations: Policy changes needed in the regulatory regime of the sector, distinguishing between immediate short-term measures that could be implemented quickly and more fundamental longer term structural changes required.
The report should include an "Executive Summary" of no more than ten pages in length.
3.Method of work
The contractor will draw on the following in carrying out the work: legislation: the principal legislation will be examined for the key impacts on the operations of the sector and existing studies: the contractor will review relevant studies in the economic and regulatory literature providing information on the sectors operations in Ireland and in other countries. Work of international organisations, especially OECD, will be drawn upon as appropriate.
Discussions will be held with the sector in question, especially through its representative bodies, and with business associations, Government Departments and other bodies in order to identify data sources, relevant studies and also to highlight key areas of concern with regard to the regulatory regime for the sector in question and to assess the degree to which the sector is meeting the requirements of its customers. Discussions will also be held with specialists in relevant areas at universities and institutes of higher education. A provisional list of bodies to be consulted is given below.
4.Timing
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Short Progress Report
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1 October 1999
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Draft Final Report
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15 November 1999
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5. Payment
50% on submission of progress report
50% on acceptance of final report
6.Reports
All reports to be supplied in three paper copies, together with Microsoft Word version (by e-mail or on diskette)
A provisional list of the bodies to be consulted is as follows:
Transport
IBEC
SFA
ICTU
Chambers of Commerce of Ireland
Dublin Chamber of Commerce
Cork Chamber of Commerce
Enterprise Ireland
IDA Ireland
County Enterprise Boards
Institute of Freight Forwarders
National Institute of Transport and Logistics
CIE
Dublin Bus
Bus Eireann
Iarnród Eireann
Aer Lingus
Nestor
Aer Rianta
National Roads Authority
Department of Enterprise, Trade and Employment
Department of Public Enterprise
Department of An Taoiseach
Port Authorities
The Competition Authority
