Oireachtas Joint and Select Committees

Wednesday, 6 February 2019

Joint Oireachtas Committee on Transport, Tourism and Sport

Impact of Brexit on Transport Sector: Discussion

Photo of Pádraig Ó CéidighPádraig Ó Céidigh (Independent) | Oireachtas source

Gabhaim míle buíochas leis an gCathaoirleach. Tá brón orm go raibh orm imeacht ar feadh cúpla uair. I will keep my few questions very short because everyone has been here since 1.30 p.m. or earlier.

I will focus on three issues, the first of which is the landbridge which accounts for €21 billion in trade annually. The Minister can correct me if I am wrong but, from memory, 70% of all imports and exports pass through the United Kingdom. Is that correct? The Minister may or may not have the information with him. Obviously, if that is the case, it is an issue of huge magnitude. I also support Deputies Fitzmaurice and Troy and Senator O'Mahony in making their earlier points about the European Commission. They were very well made.

The second issue relates to VAT which may not directly be a matter for the Department of Transport, Tourism and Sport. Irish coach operators have a big disadvantage. Irish-based coach operators are outside the VAT net, meaning that fuel, maintenance and repair costs are not reclaimable. However, coach companies in Northern Ireland or elsewhere in the United Kingdom and Irish coach companies which only deal with tourists can claim back VAT. That is a significant disadvantage for many coach operators, particularly in rural Ireland where private coaches are very important in connecting communities and getting people from A to B. This question is somewhat separate but related in some ways. I would really appreciate it if the Minister looked at it and got back to me on it.

The third issue is that of EU airlines. The Minister probably knew that I would raise this issue in one way or another. I have a document from the European Commission Directorate-General for Mobility and Transport in Brussels, dated 18 January 2019. It was sent to all stakeholders and relates to the withdrawal of the United Kingdom from the European Union. It states that "as of the withdrawal date, the EU rules in the field of civil aviation safety will no longer apply to the United Kingdom". European Aviation Safety Agency, EASA, rules will not apply to the United Kingdom. We are talking about having two totally different sets of rules and guidelines, which is not the case at present. That will have serious implications from an EU and, particularly, an Irish perspective. On the second page of the document it is stated that, because of these differences, UK licences will no longer be valid from the date of withdrawal from the European Union. This is of particular concern as it means that pilots with UK licences will not have the same standing after the date of withdrawal. It may also mean that licences issued to Irish pilots by the Irish Aviation Authority will not have the same standing in the United Kingdom. The document states pilot licences, pilot medical certificates and so on issued in the United Kingdom will no longer be valid. Certificates for air operators, attestations of cabin crew, engineers and certificates for aerodromes will also be affected. The document lays out a few more areas. This will have deep repercussions for Irish airlines, their employees and, ultimately, passengers in Ireland. It is a very significant issue.

I am sure the Minister has a copy of the document. Will he share his thoughts with us on the issue? Has the Department considered it? Has it helped the aviation industry in Ireland in the transition, perhaps through discussions at EU level? We have a far higher percentage of UK-licensed engineers, pilots and so on employed in the industry here than in France, Germany, Spain or Italy. It will affect us a lot more. It could mean that aeroplanes would have to be grounded because there would not be the proper licences for them to fly. That is a worst-case scenario, but I do not know what the position is or what is happening. The document talks about third country status such as that of the USA from an aviation perspective. We were in a position where a commercial pilot holding a US licence could only fly in Ireland or elsewhere in the European Union for up to 12 months before having to sit examinations to gain a valid European licence. That was pulled and stopped a number of years ago. If the same was to apply to UK licence holders, it could cause a serious issue for the aviation industry.

The next part of my question is related to ownership, an issue the Minister raised in his earlier deliberations. If the majority of the shareholding - I understand 51% - is non-EU, the airline is not regarded as being an EU airline. Aer Lingus is not Irish-owned and will be outside the net. Ryanair may well be; I do not know. It depends on the percentage of the shareholding held in the European Union. It is a publicly quoted company, but in actual fact there is only one, really small, Irish airline. There is not really any Irish airline in the country. The airlines here are all owned outside the European Union, which could become a particular issue of concern. I would appreciate it, therefore, if the Minister and his colleagues in the Department could consider it because it could be a very significant issue.

Those are my thoughts. Again, I apologise for having to leave earlier.

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