Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

I will address the impact of Covid on the aviation, freight and maritime sectors in the context of the vital role they play in ensuring that our supply chains continue to operate effectively during the pandemic.

The maritime sector has had to be agile and shipping and ports operations have had to respond, in one form or another, in order to maintain delivery of essential goods and mitigate the risk of the virus, ensuring that both workers and passengers were transported as safely as possible. I want to say how deeply appreciative I am of these efforts. The maritime sector is essential to the continued supply of goods and accounts for 90% of Ireland's international trade in volume terms. This sector is facing challenges, not least of which is the significant decline in passenger numbers. Passenger figures for 2020 showed a reduction of over 70% in comparison with 2019. Continuing travel restrictions have severely impacted on the combined freight and passenger services and leave questions over their viability. These restrictions have been necessary, however, in order to ensure the protection of everyone. I am hopeful that as we roll out the vaccination programme and case numbers begin to fall, we can once again look to align ourselves more closely with the EU position on a more co-ordinated approach to international travel.

The haulage industry has also played a huge role in keeping flows of goods moving into and out of the country during the pandemic while also adapting to the huge changes to our supply chains arising from Brexit. The challenges to the sector have been compounded by the imposition of testing by some EU member states for some of our essential supply chain workers. A new French law came into force on 28 January requiring truck drivers arriving in France on direct ferries from Ireland to show a negative Covid test result. Following a rapid procurement process, my Department has contracted an Irish company, RocDoc Limited, to provide free tests for commercial drivers travelling to France. Three new test centres are now up and running and testing is also available at an existing facility at Cork Airport. This testing is separate to the public health Covid testing. The new arrangements are working well at both the Irish and French ends, but will be kept under close review. Ireland is still advocating that all EU member states should adhere to the EU green lanes recommendation that essential transport workers should be exempt from such tests in the interest of keeping essential supply chains running.

Turning to aviation, as with maritime passenger traffic, international air passenger traffic has collapsed due to Covid-19 and the Irish aviation sector is currently experiencing its most challenging crisis, more severe than 9/11 or the global financial crash. Many analysts are predicting that it will take several years for the sector to return to 2019 levels. Traffic in 2020 was down 80% on 2019. Traffic levels at our three State airports are down between 90% and 97%. Dublin is down 90%, and Shannon and Cork are down 94% and 97%, respectively. The smaller airports have also been affected. No scheduled services will be operating at Shannon until April at the earliest. Knock, Kerry and Donegal have no scheduled international routes either, and Cork Airport has currently one airline serving one route on which there are only three flights a week. The sector will continue to face a range of challenges over the coming months and a protracted recovery is likely. Irish aviation will only begin to fully recover when there is some prospect of a sustainable return to international travel, including non-essential leisure travel.

It is true to say that the maritime sector does the heavy lifting for Ireland as a global trading nation. It has proven resilient, competitive and robust throughout this and previous economic crises. It continues to provide an essential lifeline to our key markets and for the supply of essential goods into the country. That does not mean that this sustained pandemic has not severely impacted the sector. My Department provided for a financial intervention for the sector for a short period last year by way of the designation of five key strategic routes as public service obligation routes. Shipping operators are clear that their survival is not guaranteed should this pandemic and the associated impacts on international connectivity continue for a prolonged period. My officials continue to engage with the sector to determine the measures we can put in place which will ensure that the sector remains operational throughout this pandemic, particularly in light of the added challenges emerging since Brexit.

My Department is also monitoring the enormous financial impact of Covid-19 on the Irish aviation sector on an ongoing basis, in consultation with all key stakeholders and relevant Departments. The Government has put in place a range of supports for businesses, including the aviation sector. These supports include the wage subsidy scheme, waiver of commercial rates, tax clawback, the Covid restriction support scheme, the credit guarantee scheme, and the Strategic Banking Corporation of Ireland, SBCI, working capital scheme. In addition to these general business support measures, the Government has also agreed a revised €80 million funding package specifically for Irish aviation. Subject to state aid clearance, which is being worked on as a priority, this funding will be made available primarily to our airports through a number of schemes. Despite all of this, and my commitment to do more if it is needed, a protracted recovery is likely. Irish aviation will only begin to fully recover when there is some prospect of a sustainable return to international travel, including non-essential leisure travel.

I wish to briefly address the impact of Covid on the delivery of essential transport services a bit closer to home. There have been a number of impacts on driver and road safety services provided to the public by my Department and the Road Safety Authority and arrangements have been put in place to assist those affected. Extensions to both driving licences and learner permits were put in place in 2020 and certificates of professional competence have also had their validity extended. Special measures have also been put in place regarding the renewal of driving licences for the over-70s. The National Driver Licence Service has expanded the online facility to accommodate all driving licence and learner permit applications to enable accessibility online rather than by calling to an office. At present, in level 5, driving tests are available only to those who are involved in essential services and significant backlogs have resulted from this. We are discussing how we can return to the normal target for the maximum waiting time, which is approximately ten weeks. It is important to recognise that there are no quick fixes and that the continuing build-up of applications means that it will take time to reach a normal waiting time. The national car test and the commercial vehicle roadworthiness test inspection regimes are now classified as essential services and there is no suspension or interruption to either service at present.

Staff in the Department and its agencies are working to ensure that the most negative impacts of Covid on the sector are managed, and mitigated. Transport remains one of the hardest hit sectors. The minister and I are working ceaselessly to ensure that the sector continues to meet the challenges facing it and delivers the essential connectivity, supply chain access and services that we all need.

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