Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Forfás Cost of doing Business in Ireland 2012 report identifies the key components in transport competitiveness as fuel costs, distance from markets, competition and efficiency in the provision of transport services. My Department has no direct control over many of these issues but keeps under close review costs arising from the services provided through our agencies.

Over 90% of Ireland’s trade moves by sea. All shipping companies servicing routes to and from Ireland are independent commercial companies that are market driven. The costs facing the shipping industry today are due in no small part to external global factors such as fuel costs and currency fluctuations. It is vital that their operations are supported by an appropriately planned efficient national port infrastructure. To this end, I recently launched the new National Ports Policy which sets the necessary policy framework to achieve this aim and provide for the sector's continued commercial development.

Furthermore, the Competition Authority is currently carrying out a review of the sector. Once this review has been completed and published, my Department is committed to responding to any recommendations made to us within six months.

As regards the airline market, Forfás recommends that we maintain competition in the airline sector. We are fortunate to have several strong and profitable airlines in Ireland. The Government has made clear that it plans to sell its shareholding in Aer Lingus but only at the right time, for the right price and under the right conditions. The position in this respect remains unchanged and subject to ongoing consideration within Government.

Roads are a key component of the transport infrastructure. The report points out that the cost of the internal movement of export goods in Ireland is the cheapest in the euro area. However, we are not resting on our laurels. A fuel rebate scheme for licensed operators and bus operators is being introduced in the second half of 2013 by the Department of Finance. In addition, a new online licensing system is due to go live this summer which will cut costs for hauliers by streamlining the processing of road transport operator licences. This new licensing system is expected to realise a saving of about €32 million per annum to the industry in reduced administrative costs.

On the road system itself, in the current economic circumstances the capital allocations to the NRA have been reduced significantly. For the moment, the primary focus for direct Exchequer spending is the maintenance of the existing network and this will continue to be the case for some years. The Government's stimulus package of July 2012 does envisage €1.4 billion in private investment being directed to infrastructure projects, including roads identified by Forfás, as a way of stimulating economic growth and creating employment.

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