Vol. 734 No. 1
25 Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport if he will outline in further detail the proposal in the jobs initiative that the Dublin Airport Authority will rebate substantial levels of airport charges to airlines in return for additional passengers. [13861/11]
The Government's recent jobs initiative includes a three-pronged strategy to encourage inbound tourism. The first element is the proposed abolition of the €3 travel tax; the second is a new growth incentive scheme recently introduced by the Dublin Airport Authority, DAA; and the third is a more targeted co-operative marketing of new air routes from key source tourism markets by Tourism Ireland, the DAA and the airlines. My officials and I have held a number of discussions in recent weeks with the DAA and the four main Irish airlines about this initiative, and I have also written to all the other airlines operating services to and from State airports. The response has been broadly positive.
The DAA's growth incentive scheme is due to run for the period 2011-14. Passenger service charges at the three State airports will be rebated to the airlines once the threshold of the previous year's traffic total has been surpassed at the airport in question. The rebates to airlines will be in line with their contribution to the overall growth at the airport.
The Finance (No. 2) Bill is currently being debated in the House and will make legislative provision for the suspension of the travel tax. The Government is only prepared to commence this provision if the airlines demonstrate a willingness to respond positively to these initiatives. This position will continue to be reviewed in the context of traffic performance in the current year as well as stated plans by airlines for growth in future years.
The new incentive is based on passenger numbers for the previous year. However, there has already been a considerable increase in numbers in the year to date, in the region of 4% or 5% across the airports, in line with a growth in economic activity in areas outside this jurisdiction. In light of that, is it wise to use 2010 as the base level against which a rebate will be given to the airlines? One must take into consideration that passenger numbers were depressed last year as a result of disruption arising from the volcanic ash cloud. Would there be a better saving for the Dublin Airport Authority if there were a nominal growth level and an adjusted figure for 2010 to take account of the depressed figures arising from the ash cloud?
The figures for this year so far may be somewhat misleading in that the numbers are down across the three airports, particularly Shannon and Cork. The numbers were down for January, February and March, but up for April as a consequence of low figures for last year as a result of the ash cloud disruption, and will probably be up for May for the same reason. It will be interesting to see whether they are up in June, July and August. The increase thus far this year arises from the relatively low figures for the corresponding periods of last year when there was disruption due to the ash cloud. We will have a better idea in June or July whether passenger numbers are rising anyway apart from this factor. A major aspect of the decline in passenger numbers is the reduction in domestic travel, and this will further reduce when the PSOs end in July. In the absence of an incentive, most commentators would expect the figures to be quite flat this year. That is why we are introducing this incentive.
It was the DAA which proposed that 2010 be set as the baseline. Under the old scheme it was 2010 adjusted for the effect of the volcanic cloud. When we asked the authority to come up with a more attractive airline incentive scheme it proposed that the unadjusted 2010 figures be used as the baseline.
The Minister's discussions with other airlines are welcome. We understandably tend to focus on our own airlines, but many tourists are attracted to this country through non-national airlines. Engagement with the latter should continue in order to encourage inbound tourism.
What impact will the incentive scheme have on the fiscal position of the DAA? We hear regularly about the authority's difficulties in terms of its continued financing of its debt. Has the Minister sought to have any analysis carried out on the impact of the scheme on the viability of the company and, in particular, on its debt rating and on the re-servicing of its debt if that becomes a requirement in due course?
On the first point, I have had discussions with the chief executive officers of Aer Lingus, CityJet, Ryanair and Aer Arann, as well as the chairpersons of three of those airlines. I have been in correspondence with the international airlines. Engagement with the latter is important because just as Irish people tend to fly with Irish airlines, even in these modern times, so too do people from Germany, France or wherever tend to fly with their own airlines. Non-national airlines, therefore, are particularly important in terms of attracting inbound tourists.
In coming up with the incentive scheme the DAA looked at the issues as to its own financial position, as did the board, before it was signed off. My guidance comes from the DAA in that regard and if it is satisfied the scheme will not damage its financial position then I too am satisfied. There is no point in having an incentive scheme which damages the DAA itself and the future of the airports it manages. It is a case of finding a balance.
It is always a challenge with issues like these where, for example, a company which is in trouble or is losing business may succumb to the initial temptation to increase prices and charges in a bid to attract more revenue. The risk in that strategy, however, is that one may lose customers. That is the decision-making process we have to go through. The DAA did that work itself before its board signed off on the growth scheme. On that basis I am satisfied there are no concerns about the authority's financial position arising from this scheme. Moreover, there must be growth before the incentive even comes into play. If there is no increase in passenger numbers, passenger revenues and commercial revenues then the scheme will not come into effect.
26 Deputy Dessie Ellis asked the Minister for Transport, Tourism and Sport the progress made in the process to decide on which of the three major capital projects BXD, metro north or DART underground, under his portfolio that he will proceed with; and if he will make a statement on the matter. [13741/11]
The Government recently announced a comprehensive review of capital spending which is now under way. The review will examine capital proposals across all sectors of the economy to establish a set of priority projects and programmes that will support economic recovery and provide new employment opportunities. The results will form the basis of a new national development plan.
The preparation of the new framework requires that my Department reviews all existing projects and programmes. The review will also need to take account of new funding realities. A major priority will be to ensure funding to protect and maintain investment made to date and to maintain high safety standards. This will of necessity restrict the funding for new projects, with only those offering the highest return having any prospect of being prioritised.
As part of the review process all agencies funded by my Department have been requested to make submissions supporting their programmes and setting priorities in a scenario of reduced allocations. Submissions have recently been received from the National Transport Authority, Railway Procurement Agency and Iarnród Éireann in regard to public transport projects. These submissions are being examined by my officials and will inform my Department's conclusions on the capital review.
I will not speculate on the outcome of the review. However, I have already stated that, given funding constraints and the uncertainty about the availability of private funding for major infrastructure projects, it is likely that only one of the major Dublin projects can proceed in the period to 2016. I will seek to secure that outcome if at all possible.
The last time I raised this matter I was told that these three projects were the only projects under consideration. Now there is some indication that a fourth project, linking Malahide to the airport, may be in contention. This project will not serve the communities along the route from Drumcondra out to Swords, including Ballymun and Santry, in which we are seeking to get the best returns. The objective is to get as many cars off the road as possible by providing a proper public transport system. The northside of Dublin has been left behind in comparison with other areas. People are not aware that metro north alone has already cost €150 million.
Does the Deputy have a question?
It is absolutely scandalous. Some €45 million has been spent on preparatory work for the DART underground project and a further €8 million or €9 million on the Luas BXD proposal. The Government has promised it will undertake one of these three projects. I urge that we proceed with the one that gives us the most, including the most jobs. The Government is always talking about jobs. The returns from metro north are huge for the communities it will serve. I urge the Government to look at that.
To clarify, there are four projects in the mix, as we have stated clearly on several occasions. After the spending review, after the information has been provided to the Department and the process has gone through the Government, we will hopefully be in a position to go ahead with one of them. We are aware of all the issues raised by the Deputy, particularly those concerning north Dublin, and we will do our best to ensure the decision made will facilitate the best project within the Government's limitations. All variables will be taken into consideration but this is about thinking about the future and providing transport infrastructure in Dublin. That will be one of the main components.
All along, we said three projects were being considered. Now, the Minister of State has mentioned a fourth. I have never been at so many meetings over one project, metro north. It will deliver more jobs——
This is Question Time.
Will the Minister consider the project that will deliver most jobs and the greatest benefit to the community, as well as ancillary benefits for residents? Also, this will deliver a first-class service to Dublin Airport. The Minister should not take the short route, which is throwing €150 million down the drain.
All variables will be taken into consideration. All the projects have merit in what they are trying to achieve. We are aware that the project to which Deputy Ellis refers has great merit. The cost benefit analysis across all projects is quite good and we will take that into account. It is incumbent on us to examine all projects. A fourth project has been brought to our attention and we are examining it. It is our intention to pick the best project from the four to ensure it facilitates people in Dublin. As a consequence, this will entail a considerable amount of work. We will choose this to the best of our ability and all variables will be taken on board.
27 Deputy Richard Boyd Barrett asked the Minister for Transport, Tourism and Sport his plans to develop Dún Laoghaire harbour as a vital public amenity for the people of Dún Laoghaire; and if he will make a statement on the matter. [13743/11]
Dún Laoghaire Harbour is owned and operated by a commercial State company. The primary responsibility for the development of the harbour lies with the company, on behalf of the State. The company is unique among the ten State port companies in that, while its main income stream is still from commercial shipping, the harbour is also the State's largest marine leisure amenity. In addition, the harbour is an important maritime heritage site and is host to what is reputed to be the nation's most popular walk. The company successfully manages these multiple roles and continues to invest in the amenity value of the harbour.
The company is currently in the process of preparing a master plan for the future development of the harbour. I welcome this initiative, which is in line with international best practice for the medium to long-term planning of ports and harbours. I encourage the many stakeholders in the harbour to participate positively in this process.
The business is facing a substantial reduction in its commercial shipping revenue this year. It has been preparing for this eventuality for the last number of years by pursuing a twin strategy of developing alternative income streams from marine leisure and tourism related business, while also reducing its cost base.
Following a public consultation on national ports policy last year, it is my intention to publish a revised ports policy document later this year. This will provide a renewed policy framework for any future decisions on individual ports, such as Dún Laoghaire.
I am sure the Minister has read the McCarthy report, which has yet to be discussed in the Dáil. It "recommends that privatisation of some or all of the ports should be considered, ideally after the recommended restructuring". I would like an assurance from the Minister and the Government that there will be absolutely no question of selling Dún Laoghaire Harbour, which the Minister correctly indicated is one of the most important amenity harbours in the country. It is of historic, cultural, heritage and economic value to Dún Laoghaire, a town that is in considerable economic difficulty. I would like the Minister to assure us there will be no consideration given to the sale of the harbour.
The Minister referred to the efforts of the harbour company to reduce its cost base. Some aspects of that are worrying and might imply to workers and locals that the restructuring prior to possible privatisation is already under way. For example, five harbour police had their jobs axed recently, with a detrimental effect on the security to walkers and users of the port. Other workers were supposed to enjoy the protection of the Harbours Act, having been transferred when the port moved from direct Government ownership to semi-State status. They were given protection under the Harbours Act in terms of pay and conditions but were recently asked to accept a 35% pay cut, while the management of the harbour company is refusing to entertain pay cuts for management.
Can we have a question please?
I would like the Minister to assure us there will be fairness in any restructuring and that the fairness will include negotiation on a reduction in pay for workers, protecting workers' jobs in the harbour, ensuring management is required to share in any reduction they ask of the workforce, that there is real consultation with the workforce and local people on how to develop this vital amenity and that it is not facing sale or will not be commercialised——
Can we have a question please?
——in a way that will damage and be detrimental to the future of the harbour as an amenity.
I assure the Deputy there will be real consultation and input from users, stakeholders, the local community and the staff in respect of the master plan. That is the point of the master plan. We will launch the master plan consultation in the coming weeks. Everyone will be invited to participate.
In respect of ports, the McCarthy report recommends that they be consolidated into three port companies — Dublin, Cork and Shannon Foynes — and that privatisation be considered at a later stage. The Government is considering the McCarthy report and has made no decision on it. It will be further down the line before the Government is in a position to publish its views on the recommendations of the McCarthy report. That is under discussion at departmental and Cabinet level and it would be wrong of me to prejudice the outcome of those discussions and deliberations. The restructuring of the port is in no way connected to any possible privatisation in the future. The restructuring is taking place because the port needs to match its expenditure with its income. It is a port company and a business that must match expenditure with income. That is why the workforce is being reduced from 42 to 26 and why there are discussions at the LRC. The LRC is the right place for that work to be done on how further savings can be made.
Deputy Boyd Barrett referred to people who were previously civil servants. They have special protection under the Harbours Act but it is up to the Minister for Finance to make a determination on their tenure, under section 39(3) of the Harbours Act, after consulting me. No process has commenced in that respect. Those who were previously civil servants and transferred to the port company did not have the pension levy or the public sector pay cut applied to them in the way it was applied to current public servants.
Can I ask a supplementary question?
No, time has expired.
28 Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport the amount of the €75 million provided for transport projects under the jobs initiative that was reallocated from existing funds within his budget; and the schemes or projects that will be affected by this reallocation of funds. [13862/11]
All of the €75 million provided for transport projects under the jobs initiative was reallocated from existing funds within my Department's overall capital allocation as follows. Some €40 million savings on the national roads budget for 2011 had been provided for close-out payments on projects already completed and is not now required in 2011. Some €10 million savings came from Luas projects due to appropriate substitution by unused section 49 levies, €11 million savings came from purchases of equipment including the purchase of new buses now due for delivery in 2012 instead of 2011, €7 million savings due on allocations for metro north and the Marlborough Street bridge projects due to revised work programmes and delays, €7 million saving on allocations for contingency and for design and planning of public transport projects, amounting to €75 million. This was identified for reallocation following a detailed review by my Department of all capital allocations for 2011 in consultation with relevant agencies funded by my Department. The €75 million has now been allocated to shovel-ready labour-intensive transport projects, which will create approximately 1,000 jobs in 2011. Of the total, €60 million has been provided to local authorities to repair regional and local roads across Ireland damaged in the past two severe winters, along with €15 million for improvements to train stations, traffic management and smarter travel projects, mainly in cities and towns, to facilitate public transport users, pedestrians and cyclists.
Will the Minister provide more detail on the €40 million from the national roads projects? From what projects was the money saved? I am familiar with a number of national road projects which are shovel-ready, with some in my constituency. I do not want to be parochial but the council is having difficulty having safety works carried out. Recently there was an accident, which could have been more serious, when a car toppled from the road into a water course. I understand it has not been possible to get funding from the National Roads Authority, NRA, because it did not have the appropriate funding identified early in the budgeting process.
I welcome funding being made available more quickly to shovel-ready projects but there are some within the national roads programme which could have received some of that money. I am somewhat confused that the NRA had money lying around and was not able to allocate it. That seems to have been the position.
With regard to the €40 million, this came from funding allocated to final close-out payments for motorways and the inter-urban motorway network in the main. These final payments go to arbitration as costs are estimated in advance. As it turned out, after arbitration less money was owed for those roads than was anticipated. The decision was then to be made as to whether the €40 million would be reallocated to a small number of national road projects or spread across the 30 or so local authorities to allow them repair 1,000 km of local and regional roads. On balance, it was preferable to spread the money over the approximately 1,000 km of local and regional roads that had to be repaired as opposed to just allocating the money to two or three national road projects that probably would not have even commenced this year. Road maintenance can be done quickly but full new projects take time to commence. Some local authorities have sought reallocation within the funds given to them and we are happy to consider that.
29 Deputy Sandra McLellan asked the Minister for Transport, Tourism and Sport his plans to maximise the tourist dividend from the Titanic anniversary in 2012; the budget available to promote the anniversary; the scope for cooperation with his counterpart in Northern Ireland and with stakeholders, including those in Cobh and in Belfast; and if he will make a statement on the matter. [13744/11]
It is obvious that next year's centenary of the Titanic sailing presents significant opportunities for Irish tourism and work is already under way to ensure the benefits are maximised. Tourism Ireland commenced its Titanic promotion activities last September with a week-long showcase in the Grand Central terminal in New York. It has also set up a dedicated Titanic website and has brought overseas journalists to Cobh to highlight the links to the Titanic. I understand that just last week, the agency met with the Cobh and harbour chamber of commerce to discuss future activity and has also met with the organisers of Cobh 100. Similarly, I understand Fáilte Ireland is meeting with the town council in Cobh this week to explore how to develop a calendar of events around the centenary and promote these events to the overseas trade and media.
With regard to co-operation with Northern Ireland, as the Deputy is aware, tourism was specifically identified in the Good Friday Agreement as one of the key areas for North-South co-operation, and consequently it is one of the sectors on which the North-South Ministerial Council meets in sectoral format, to make decisions on common policies and approaches in the area of tourism. Arrangements are being finalised for the next meeting in sectoral format at which I will meet the Minister for Enterprise, Trade and Investment in Northern Ireland, Ms Arlene Foster, MLA. With its historic connections to both Belfast and Cobh, the Titanic story is one with obvious potential for co-operation and I understand the agenda for the next sectoral meeting will permit discussion of major tourism events on the island next year, including the Titanic centenary.
With regard to the budget for tourism-related promotion of the centenary, it is a matter for the agencies to decide on best use of resources. I understand that their plans for this year include Titanic-related promotional activity as already outlined.
The anniversary of the Titanic is a fantastic opportunity to promote the island of Ireland and commemorate those who lost their lives. The Titanic exhibition at the Ulster Folk and Transport Museum, which opened yesterday to mark the ship’s launch 100 years ago, should form part of a well-planned calendar of events next year. It is essential that the overall Titanic 2012 anniversary is presented as a complete package that ties in all the various aspects of the voyage and its relationship with different parts of the island, North and South, both in Belfast and Cobh.
The Titanic was Ireland’s most famous maritime export. Given repeated Eurobarometer polls indicating the attraction of the sea and waterways for incoming tourists, has the Minister plans to develop further our harbours and marinas for tourism?
I am sure the Deputy has seen it already but there is a website, www.the-titanic.com, which has much information and has been translated into a number of languages. It is worth a visit. We have plans to develop amenities at the harbours and ports. There are regular grants for harbours to allow this development. By and large, most of the resources must come from the port companies in the case of ports or the local authorities when it comes to harbours. I agree with the Deputy’s basic sentiment that the Titanic centenary is a major opportunity for Ireland, both North and South, and we must consider our harbours in a different way. In particular, we must build on the leisure and tourism opportunities deriving from them.
