Dáil Éireann Debate, Wednesday - 6 March 2019
274. Deputy Lisa Chambers asked the Minister for Transport, Tourism and Sport the way in which he plans to ensure there is no disruption to supply chains both east-west and North-South in the event of a hard or no-deal Brexit; and if he will make a statement on the matter. [11181/19]
Amharc ar fhreagraA number of key supply chain risks have significantly reduced as a result of contingency measures proposed by the European Commission. The proposed measures were due to interventions by a number of Member States including Ireland. While these measures are temporary in nature, they will, if adopted, ensure the immediate continued access for our road hauliers to the UK market and also for direct flights to and from the UK, including for air freight. However, significant challenges remain and disruption cannot be fully avoided in all areas.
In relation to North - South, the Government is not planning for a hard border and the EU is fully supportive of this position.
In relation to east-west supply chains, the continued use of the landbridge as a key route connecting Ireland with the continent is a crucial concern given the level of imports and exports that are transported via this route, with 16% of the HGV traffic between Ireland and GB estimated to constitute landbridge traffic. The total value of our trade using the landbridge has been estimated to be approximately €21 billion. Goods using the landbridge include many time-sensitive or perishable goods, and are transported by truck on Roll-on / Roll-Off shipping services to and through the UK. Dublin and Rosslare ports handle almost all of this traffic.
In a no-deal scenario, the ease with which these movements of goods currently take place will no longer be guaranteed. Additional customs, agriculture and health controls will be required at EU ports that trade with the UK. In the case of the landbridge route, the ports of Dublin, Rosslare, Holyhead and the Dover-Calais link are of paramount concern. In Ireland, the OPW, the Department of Agriculture, Food and the Marine, the Department of Health and the Revenue Commissioners are already preparing by developing the necessary plans within Dublin and Rosslare Ports to allow for these controls. I am aware that similar preparations are ongoing in Calais.
Some trade currently using the landbridge route may, depending on the nature of the product, switch to the direct routes to the continent. For others, some delays at UK and other EU ports may not be such as to constitute a significant deterrent to the continued use of the landbridge. However, the use of the landbridge for some other products that are perishable or very time sensitive may become unviable and may also not be viable on the longer direct maritime links.
I updated cabinet on 15 January 2019 on the capacity on direct shipping routes to EU continental ports. In doing so, I set out the importance of the UK landbridge as a critical route for Irish trade and the importance of alternative direct shipping routes should traffic on the landbridge become disrupted as a result of Brexit. My view then was that sufficient capacity on the direct shipping routes to continental EU ports was available to meet the demands of Brexit and that the market was sufficiently flexible to cater for any increase in demand.
This understanding of the likely response of shipping companies to Brexit-related challenges was tested in a series of meetings with senior representatives of shipping companies, including both immediately before and after I briefed Government. While I remain of this view and I re-iterated it at Cabinet yesterday, I have asked that the IMDO and my Department continue to keep this under review.
