Dáil Éireann Debate, Tuesday - 6 October 2020
228. Deputy Ged Nash asked the Minister for Transport the capacity on direct routes to continental ports and the contingency capacity should additional support be needed due to a disorderly Brexit; his plans for sourcing additional capacity if required; and if he will make a statement on the matter. [28636/20]
Amharc ar fhreagra229. Deputy Ged Nash asked the Minister for Transport his views relating to the sole reliance on the privately run and owned shipping sector in the case of a disorderly Brexit; his views on whether the Government should intervene to create a semi-State shipping sector in view of the fact this is a vital link in the supply chain here that is not in public hands; and if he will make a statement on the matter. [28637/20]
Amharc ar fhreagra230. Deputy Ged Nash asked the Minister for Transport his views on whether the creation of a semi-State shipping sector as opposed to the current private monopoly will help guarantee the delivery of goods and services and safeguard the economic viability of Ireland, which is dependent on the ability to trade effectively. [28638/20]
Amharc ar fhreagraI propose to take Questions Nos. 228 to 230, inclusive, together.
As has been signalled since the publication of the report ‘The Implications of Brexit on the Use of the landbridge’ by the Irish Maritime Development Office (IMDO) in 2018, there is likely to be disruption to the UK landbridge when customs and border controls between the EU and the UK are introduced, which is now due to happen from January 2021. Since the publication of the 2018 report, my Department, in conjunction with the IMDO, has been keeping the issue of direct shipping routes to the Continent under close review, particularly in the context of the COVID-19 pandemic.
Shipping companies have assured the IMDO and my officials that they will respond to any increases in demand for direct connectivity at the end of the transition period and shipping companies have been adding capacity even during the COVID-19 pandemic in mid-2020.
At present, there is more than sufficient capacity on existing services in the RoRo network between Ireland and mainland Europe to cater, if required, for the landbridge traffic currently estimated at around 150,000 trucks per annum. It is also considered that the shipping industry is resilient, responsive and capable, without State intervention, of adjusting to and satisfying market demand.
The Government considers that State intervention to establish a semi-State shipping sector or to establish State shipping links, in the current circumstances and in the context of the end of the UK’s transition period, would be likely to undermine a market response resulting in an insufficient, inadequate and costly intervention being put in place. Such an intervention would be likely to result in legal challenges from incumbent shipping providers, create difficulties for the State in extricating itself from the shipping market, would result in breaches of EU state aid rules and consequent requirements for repayment of the state aids with interest, with resulting adverse impacts on the viability of any companies receiving such aid.
My Department, together with the IMDO, is continuing to closely monitor and keep under review the evolving situation regarding maritime connectivity to continental ports, and will remain in close consultation with the maritime sector and other relevant stakeholders on this issue. We will also continue to engage with ports, hauliers, shipping companies and other stakeholders regarding the processes and facilities at Dublin and Rosslare Europort to deal with traffic post the end of the UK’s transition period.
In that context, the IMDO is specifically reviewing the conclusions and recommendations in the 2018 Landbridge Study and, in particular, the issue of direct maritime connectivity to Continental Europe at the end of the transition period. That re-assessment is expected to be completed shortly.
As set out in the Government’s updated Brexit Readiness Action Plan, published on 9th September 2020, businesses are being asked to consider moving, in advance of the end of the transition period, to direct route options for the movement of goods from Ireland to the Continent, to avoid potential delays and the new procedures that will be introduced associated with using the UK landbridge. Shipping companies should also continue to assess expected future demand requirements and remain ready to respond to increased capacity demands, and all the indications are that this is happening. My Department, together with the IMDO and other relevant Government Departments and Agencies, is also engaging in a communications campaign with stakeholders in this regard over the remaining weeks up to the year end.
