Robert Troy
Ceist:919. Deputy Robert Troy asked the Minister for Transport, Tourism and Sport the measures introduced to resolve a matter (details supplied) in order to ensure there is no disruption to the supply chain. [8849/20]
Amharc ar fhreagraWednesday, 3 June 2020
Ceisteanna (919)
Freagraí scríofa
Maintaining transport connectivity to support the movement of goods into and out of Ireland remains a primary objective of Government during the COVID-19 outbreak. Critical supply chains have continued to function well; however, the pandemic has negatively impacted on freight activity levels globally and the road haulage sector, like many industries, has been affected as a consequence.
The drop in freight activity was inevitable given the temporary closure of a range of commercial activities in Ireland and abroad. An increase in 'empty leg' journeys during the COVID-19 pandemic is, as pointed out, not specific to Irish hauliers, with incidents widely reported across Europe and I am aware that it has become more difficult for some Irish hauliers operating internationally to ensure full loads for both outbound and inbound journeys.
My Department, in conjunction with the Irish Maritime Development Office (IMDO) continues to keep maritime freight activity levels under review. As sectors begin to re-open both here (with Phase One of the Recovery Roadmap already underway) and across Europe, I expect that the demand for goods will begin to rebound. As a consequence, business for haulage operators should begin to revert toward more traditional levels. In fact, since the easing of some restrictions freight activity levels have already begun to show some early indications of improvements on both maritime routes and on our roads network, including the Dublin Port Tunnel.
I note that the Deputy’s question refers to a proposal whereby ferry companies in receipt of public service obligation (PSO) support should offer a discounted rate for empty vehicles or trailers. I wish to emphasise that the PSO arrangement was essential in safeguarding a basic level of maritime connectivity between Irish Roll-on Roll-off (RoRo) ports and Great Britain/Europe during the COVID-19 crisis. It was, and is, necessary to keep supply chains, and therefore hauliers, moving into and out of Ireland. The PSO support package is required to be targeted, temporary and restricted, with the explicit aim of keeping Ireland, as an island nation, connected to Great Britain and the EU. The PSO arrangement supports five routes only; other routes, where the number of services and providers were deemed sufficient to prevent market failure, were not supported. The aim was to ensure that operators continue to service the Southern and Continental Corridor instead of a complete cessation of these routes. The support measure is limited to covering the gap between specified costs and revenues generated on the relevant services. Under this model, no company would make a profit but the State secures strategically important services, which are vital for the haulage industry. This is similar to other services such as public transport and regional air routes, which also receive PSO supports. They do not, and cannot, reduce costs for any particular set of users but rather allow the service to remain in place for users to avail of.
The Deputy may wish to be aware of a number of COVID-19 specific measures that have been put in place, to help support the continued functioning of the road haulage sector, including:
- A temporary derogation from certain provisions of the EU drivers’ hours rules, which has been in place since mid-March and which expired on 31 May 2020;
- An extension of expiry dates on Driver Certificate of Professional Competence (CPC) cards. Irish Driver CPC cards that expire during the COVID-19 outbreak will be valid up to 26 September 2020;
- A three-month extension for vehicles with a Commercial Vehicle Roadworthiness (CVR) Test due on or after 28 March 2020;
- An extension of validity periods for drivers with driving licences due to expire between 1 March and 30 June 2020 inclusive, their date of expiry being extended by 4 months;
- Publishing an array of practical documents, including workplace guidance on how to manage business continuity; a communication regarding access to sanitary facilities and motorway services; a summary of motorway service area facilities; and guidelines for cleaning HGVs; and
- An array of enterprise COVID-19 specific supports that the haulage sector can also avail of including the Credit Guarantee Scheme; the COVID-19 Working Capital Scheme; Microfinance Ireland COVID-19 loan finance; Wage Subsidy Payments; and Pandemic Unemployment Payments.
In summary, while I recognise that the temporary closure of a range of commercial activities has led to a significant change in demand for goods into and out of Ireland, I am confident that the coming weeks will see an improvement in the situation as sectors continue to re-open here and across Europe. In the interim, I do not currently believe that Government subvention for empty leg journeys is an appropriate mitigation measure, and transportation costs should continue to be negotiated on a commercial basis between relevant parties. In addition, eligible hauliers may avail of the State supports outlined to assist them during these challenging times.