The review group, comprising Mr. Bill Attley, Mr. John Dunne and Mr. Kevin Bonner, which reported to me on 4 July on Iarnród Éireann: The Way Forward, indicated that there are major questions to be addressed with regard to the future of the rail freight business.
The review group set out a number of arguments in favour of, and against, retaining freight services generally. In this regard, it recommended that a special and thorough study of the issue be commissioned as a matter of urgency. In addition, the review group suggested that long range plans need to be established for the rail sector as a whole.
I am aware the boards of Iarnród Éireann and CIÉ are considering a business plan for the rail freight sector for 2001 to 2006 arising from commercial losses being incurred. They have forwarded a copy to me for my information. They are in the process of having discussions with the trade unions on the plan. I understand that no decisions have been taken in that regard. Furthermore, I understand that Iarnród Éireann is working on a business plan for the rail sector as a whole. We will commission a strategic study of the rail sector in line with the report of the three wise men, Iarnród Éireann – The Way Forward. This study will assess the CIE proposals and take account of the various other rail proposals which arise from land use studies being undertaken around the country. This study will also assess the rail freight proposals. It is intended to discuss the terms of reference for the proposed study with CIE and the social partners at the partnership forum on public transport.
EU funding of approximately £196 million – 249 million – is provided in the rail development programme set out in the national development plan for the upgrading and renewal of suburban and mainline rail services. No provision has been made for re-opening of passenger or freight lines. The decision by Iarnród Éireann to close the Kingscourt to Tara Mines rail line following the loss of the Tara Mines business is a matter of day-to-day responsibility of the board.