Timmy Dooley (Clare, Fianna Fail)

I welcome the opportunity to contribute to the debate on this Bill. It is technical in nature and it is a requirement for it to be enacted by 4 December. I do not intend to delay the Bill's passage but I am concerned about its late publication. The Bill is being presented to give effect to EU regulations adopted more than two years ago. While provision was previously made for the regulations by way of statutory instrument, I find it hard to understand why the Oireachtas is expected to pass this primary legislation on the nod because the deadline is 4 December. It really is no way to do business. Rushed legislation, as the Minister is well aware, is never good legislation. There are times when it is necessary but this is not such a time. There was adequate time to prepare this legislation considering that it is more than two years since it became known that the regulations would ultimately require primary legislation. That said, Fianna Fáil will certainly facilitate the smooth passage of the Bill but I caution the Minister that Fianna Fáil is not to be taken for granted in this regard.

I look forward to the more comprehensive legislation the Minister has promised. Some of the points raised in my contribution will clearly show the necessity for that legislation to be introduced as a matter of urgency. It will ensure that there is a fair and competitive environment for all transport operators across the European Union who wish to operate in this jurisdiction.

The transport industry, as the Minister is well aware, is a vital component of our domestic economy. The licensed haulage sector comprises in excess of 18,000 vehicles, providing approximately €1 billion to the State over the course of a year, taking into account duty, road tax and various other taxes raised through the people who work in the sector, including those who pay PAYE tax and PRSI. There are approximately 50,000 people employed in the sector, including drivers, mechanics, warehouse staff and administrative staff. There are approximately 4,000 operators in the licensed haulage sector. This is just a fraction of the overall number in the transport sector. Obviously, own-account operators are in a different category and, to a large extent, they operate in an unlicensed environment.

The licensed haulage sector represents a substantial sector of our country. It is important that it be regulated appropriately and that standards be maintained to the highest level. Unscrupulous operators should be dealt with appropriately to the benefit of those who operate in a licensed environment and customers and suppliers generally within the sector. Customers need to be assured of the bona fides of operators. Those hauliers who wish to comply and operate reputably ought to be given the protection of the State to ensure there is not an anti-competitive environment.

The provisions the Minister announced that amend existing provisions on the good repute of applicants for licences are welcome. They set the appropriate standard for the applicants and existing licence holders. Access over the Internet to the national register of licensed operators is useful in that it protects customers and licensed operators. Increased penalties for unlicensed operators should act as a serious deterrent. A fine of €500,000 is appropriate. The old story applies; we often set targets and find that the Judiciary brings its own views to bear on them. It is obviously a matter for them but I hope that, where somebody has been operating in an unlicensed environment and seeks to breach the provisions and legislation, he will be dealt with appropriately. I hope the fines imposed by the courts will act as a deterrent. This would be exceptionally helpful.

As the Minister knows, the Bill is to give effect to three EU regulations, Nos. 1,071, 1,072 and 1,073 of 2009. Regulation No. 1,072 relates to the rules of access for the international road haulage market. It is becoming more clear to me that there are no provisions in this Bill relating to market access issues in general. Perhaps the Minister will address this in the legislation he proposes to bring forward next year. If so, I look forward to his views on it.

There is no provision in the Bill to regulate the procedure of cabotage. Perhaps there is some manner in which the Minister proposes to deal with it. I understand a very serious issue arises owing to a distortion of fair trade guidelines in so far as they bear on Irish road hauliers. This is because of the interpretation by the UK Government of Regulation No. 1,072 to the extent that it relates to roll-on, roll-off, or ro-ro, traffic. What efforts has the Minister made to address this problem? Has he negotiated a bilateral agreement with the United Kingdom in light of our island status and the importance of ro-ro traffic to our export sector? Has he sought any derogation for Irish hauliers from the Commission in regard to the application of the regulation in so far as it relates to the definition of the first movement allowable under the cabotage clause? In other words, has he sought to exclude the port of entry as the point of first movement under cabotage rules for ro-ro traffic, thereby treating ro-ro traffic in the same manner as accompanied traffic?

While this matter is technical and while it has taken me some time to get my head around the concept of point of first movement, I recognise the competitive disadvantage affecting Irish road hauliers who seek to develop a ro-ro business providing a cheaper offering to our exporters with a view to ensuring that our exporters remain more competitive in this difficult environment. Therefore, there is a very strong business case for finding a solution.

There are no provisions in the Bill to implement the cabotage provisions of Regulation No. 1,072. I understand that, by not doing so, we are allowing inequitable circumstances to continue to obtain for Irish road hauliers. UK hauliers, including those from Northern Ireland, who offer their services here are seen to have a free-for-all. As far as I am aware, there is no capacity for us to enforce the three-movement rule as set out in the cabotage clause in Regulation No. 1,072 in terms of external road hauliers in a way that would ensure a free and equitable competitive environment for all. We must not allow this to continue. If cabotage is a concept that the Minister intends to deal with in legislation next year, I urge him to bring it forward as quickly as possible.

I understand from talking to various actors within the industry that the problem is having an impact on their capacity to compete. It has been suggested to me that, for Irish road hauliers to level the playing pitch, they will have to register trucks in the United Kingdom. Obviously, this would result in considerable losses to the Irish State. The idea behind the cabotage rules was to negate this requirement. We need to move on this, bearing in mind that Irish road hauliers are subject to very stringent rules in the United Kingdom because of the UK interpretation. Much of this relates to the ro-ro aspect. The difficulty is that hauliers from Northern Ireland in particular seem to have unhindered access to the market on this side of the Border, yet they are treated as domestic hauliers on the other side of the Irish Sea. We are in a unique position because of the land and sea borders. Our exportation of goods in such large volumes to the United Kingdom puts our hauliers at a disadvantage. I would like the Minister to comment on this.

Owing to the Minister's role in tourism and transport, he is well aware that Ireland, as an island nation, is a major exporter. Exportation is really the only positive aspect of our economic activity in the current climate. Our export sector depends primarily on the road haulage sector to access the EU markets. It is vital, therefore, that we create a competitive environment for our road hauliers and give them the appropriate protection that other jurisdictions seem to provide for theirs. It is necessary not only because we need reduced rates to ensure we can get our product to market as cheaply as possible and compete with other primary producers on the Continent but because it will allow our indigenous transport sector to grow. As I pointed out, this sector is a significant component of our economy. If the cabotage issue is not dealt with, it will make it easier for foreign hauliers, particularly those from Britain and Northern Ireland, to compete more aggressively in Ireland, to the detriment of our haulage sector.

The Minister is aware of the price elasticity hazard that exists and which will, in terms of the transport of our goods, have a very negative impact on exports and, consequently, our economic output. We must not allow any practice that undermines our economic output at this time.

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