Dáil debates

Wednesday, 11 November 2020

Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020: Second Stage

 

5:20 pm

Photo of Verona MurphyVerona Murphy (Wexford, Independent) | Oireachtas source

I am certainly not in the habit of correcting colleagues but the reality is the review released this week by the Irish Maritime Development Organisation, IMDO, has certain cohorts under the illusion that extra ships have been brought on and I would like to correct this miscommunication. At this point in time, no extra ships have been brought on to service land bridge traffic. The review included factors such as an overview of freight volumes through Irish ports, focusing in particular on land bridge traffic, which is roll-on, roll-off traffic, with trucks and drivers, as well as lift-on, lift-off traffic, with no trucks or drivers. It is a minuscule amount of what would be regarded as land bridge traffic. It took into account demand factors and supply factors as well as a case for State intervention in the shipping market.

The report states freight demand will be lower than normal in 2021. As a word of caution I state the review was carried out in the second quarter of 2020, in the middle of a pandemic when most of Europe was in lockdown from a manufacturing perspective. This means there would not be a true reading of movements during this time. Another conclusion of the report was that supply capacity will be higher than normal in January 2021. Again, this is not true with regard to land bridge traffic. Land bridge traffic will not be catered for on lift-on, lift-off routes, where the IMDO states the capacity exists. Furthermore, Rosslare Europort, which is the most strategic port and provide the shortest crossing to mainland Europe, does not have the facilities required for lift-on, lift-off container ships. Therefore, any extra capacity is on much longer sea routes than a direct 18 hour roll-on, roll-off service. In some cases, the capacity we are expected to use as an alternative requires a 38 hour shipping journey.

This is at a time when the Minister, Deputy Coveney, said the Government could subsidise it but it is not currently required. The report states that State intervention is problematic and the case has not been made that it is necessary at this time. This is not true either. The case has been made continually by the customers of these shipping providers and the Irish Road Haulage Association, IRHA, but the IMDO did not ask the IRHA nor did it ask any of the pharmaceutical companies or major food producers to whom I spoke. From what I can tell, it only asked the current shipping providers, which is the equivalent of asking turkeys to vote for Christmas. A move to direct routes from the land bridge will increase shipping costs by 30% in one fell swoop to the supply chain and its service providers. This is detrimental in most cases and far too much to bear in this climate. Neither Covid nor Brexit are of our making and a subvention to eliminate this cost until the dust settles on Brexit is a most or jobs will be lost.

The Taoiseach told the house yesterday the IMDO is informing Government policy, so the reasons I have outlined, and the misinformation provided by the IMDO's report, can only mean the Government's policy on shipping and ensuring the land bridge traffic suffers the least interruption will also be flawed. The Government's policy should be ensuring that an efficient and effective daily service is put in place now. This service requires extra ships to be chartered and placed in service from a port that is the closest in line time wise to the current land bridge service of 13.5 hours. This means Rosslare Europort must have a daily service. This may require a subvention from the Government. We were told at the outset that the EU would support Ireland if it was disproportionately affected by Brexit. That time is now. We are disproportionately affected. The Connecting Europe Facility, commonly known as the EU connectivity fund, is available for infrastructural investment in transport aimed at greater connectivity between European Union member states and must be drawn down to prepare Rosslare Europort to be the direct access port to mainland Europe. This must happen in the national interest. The Taoiseach said last night that it is never too late. Let us act now and ensure it happens before it is too late and businesses and jobs are irreparably affected.

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