Oireachtas Joint and Select Committees

Thursday, 19 October 2017

Joint Oireachtas Committee on Transport, Tourism and Sport

European Transport Sector: Discussion with European Commissioner

11:30 am

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I welcome the European Commissioner. She is appearing before the committee at a highly opportune and appropriate time given the challenges that face us as a consequence of Brexit. Being pro-European we must ask ourselves why the United Kingdom voted to leave the European Union. How we deal with how the United Kingdom leaves the European Union will be a testament to the Union. In the case of how this country is dealt with, we must see the benefits of being a fully paid up and engaged member of the European Union.

I will refer to the key areas the witness mentioned. One is the transport infrastructure and the funding streams under the EU investment plan or the Juncker fund, as it is commonly known. At present, Ireland has the second lowest level of capital spending in the European Union. Is the Government using this funding effectively to increase our net infrastructure outside the parameters set down by the fiscal rules? In her contribution the European Commissioner complimented the use of public private partnerships in respect of our fabulous road infrastructure. What is her opinion on the Department of Finance cap which limits PPP investment to 10% of total annual capital expenditure? Does she think this is too arbitrary or does she think we should relax that and avail of the Juncker funding? As yet, this country has not put forward a single transport proposal for this funding. Perhaps the Commissioner will comment on that issue.

With regard to the challenges of Brexit and the funding for the European transport network, the European Commissioner referred to the Connecting Europe Facility, CEF, as the main source of funding from Europe. Will there be an opportunity to review the comprehensive TEN-T network in the light of the fact that Northern Ireland will be leaving the European Union? The only rail infrastructure at present is from Belfast to Dublin and to Cork. Will we be able to avail of the CEF funding if that connection or network is broken? Can we consider new networks and new connectivity, such as the Rosslare Europort? At present, 80% of our exports go through the landbridge. Should we be considering investing in Rosslare Europort to make a direct link to mainland Europe and will there be a facility to review the TEN-T network in the future?

Ms Bulc talked about the challenges faced by the freight industry and complimented the establishment of the €300 million fund in the most recent budget. However, that is a fund that offers a low interest rate. Has the European Union considered relaxing the state aid rules? A certain number of our export dependent companies will need direct capital investment and grant aid funding, not just the ability to avail of low interest rates. I would welcome Ms Bulc's opinion on that matter.

The aviation sector will be severely impacted in that regard. The European Commissioner spoke about the hundreds of flights. There are thousands of flights every week between Ireland and the United ingdom. It is the second busiest intercity connection in the world and the busiest in Europe. In that context can the witness confirm, due to the wider economic importance, that an aviation deal will be dealt with separately under a separate agreement? It must be dealt with earlier and independently of the wider trade negotiations. As the European Commissioner said, the date of exit is fast approaching. Seats are sold one year in advance so it is critical that a deal is done in the near future. Some of our key players made this point recently at an EU committee meeting in the European Parliament.

Would the Commissioner support maintaining the current aviation market access arrangements? Would she support the retention of the open skies policy? Would she support the reintroduction of duty free sales on EU-UK routes as soon as the European Union becomes a third country as a means of softening the Brexit blow for the industry? Has she learned from any of her experiences with the lengthy approval process required for Norwegian airlines to get an operating licence recently? How does she envisage the United States evolving in respect of the open skies policy? It took almost two years to get a route opened between Cork and the United States and now the United States is imposing extraordinary taxes of 30% on the Canadian Bombardier Inc. company. Is the European Union going to press the United States to deal in a more open way with the Union with regard to the open skies policy? In addition, there are standards across the European Union with regard to aviation. How does the witness envisage those standards being maintained? Does she envisage the United Kingdom being able to retain the same standards as Ireland?

The European Commissioner referred to decarbonisation and a suite of measures or packages. Given the negative cost of €500 billion per annum, there is a real incentive to roll out initiatives to make people transfer. I am conscious of some of the measures introduced in the recent budget.

The reply to a parliamentary question I tabled recently indicated there are more than 6,000 vehicles currently in State ownership but only six hybrid or electric cars were purchased on behalf of the State last year. We are not leading by example in this matter. Will the Commissioner comment on that matter?

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