P J Sheehan (Cork South West, Fine Gael)
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I thank the Leas-Cheann Comhairle for allowing me to raise this important matter on the Adjournment. Earlier last year when it became evident that we would not have a ferry service between Cork and Swansea, little did we realise the important economic artery which had been severed. The dismal 2007 season cannot be blamed entirely on the weather as people pre-booked their holidays. A noticeable drop in tourism figures has been witnessed throughout the west Cork region. My research indicates a drop in revenue of approximately 30% across the board. Little did we realise what was to be lost to us. The Minister of the day with responsibility for tourism stated that the loss of the Cork-Swansea ferry service would have a minimal impact on tourism in the city and in west Cork. It is now crystal clear that the loss of our ferry service is similar to and on a par with the loss of the Heathrow slots to Shannon, when Aer Lingus pulled out. With uncertainty looming over Cork Airport, it is of paramount importance that the ferry service is restored at the earliest opportunity.

I recently heard the Minister for Enterprise, Trade and Employment state on the radio that perhaps the city corporation and county council should contribute to new ferry proposals. I take this opportunity to inform the Minister that the ratepayers of the county and city of Cork are pushed to their limit with rates, coupled with the cost of their services, and any monetary intervention would have to come from Government.

Recent research shows that Ireland is now the third most popular holiday destination for the British public. In areas throughout west Cork which are not serviced by rail or bus, the ferry service was a lifeline for the many hotels, guest houses, bars, restaurants and seasonal businesses, such as boating services, pony trekking etc. A very large influx of golfers came from the west midlands, Wales and the south of England, and Europeans also used the service. With the demise of the service, it is alarming to find a fall-off in this type of business, which in the case of British visitors amounts to a drop of 51% in one west Cork golf club alone and an overall loss to the south-west region of at least €35 million.

It is my contention that the impact has been anything but minimal. Figures at my disposal indicate that for almost three years of its existence, the ferry carried 285,250 passengers to the area, bringing with them 108,459 cars. These are real figures which show the loss to the region, with peninsulas such as Beara, Muintir na Mara and the Mizen, with the associated towns and hinterlands becoming increasingly more dependent on tourism for survival. The lost revenue of these and the adjoining regions, if allowed to continue, has a lethal effect on the economic sustainability and viability of these proud communities which continuously battle on a daily basis for their existence. Lost revenue from this lucrative market has to be recaptured as soon as possible. There are talks and rumours abounding at present that others are in the process of providing a service but, as one correspondent recently stated, these are only phantom ships, and as we all know, phantom ships will bring phantom people with phantom money, which will not pay the piper at the end of the day.

The Minister cannot stand idly by and watch our main industries in the peripheral area of our county disintegrate before our eyes. We have no rail service in south-west Cork, no roll-on roll-off service in the area, no bus service to the peripheral areas of our three peninsulas and not one mile of national primary route in the Cork south-west region.

Does the Minister of State expect our inhabitants to survive on fresh air and cold water? At least, the Minister for Community, Gaeltacht and Rural Affairs, Deputy Ó Cuív, has subsidised ferry services to all the islands off our regions. It is not beyond the bounds of possibility for the Minister for Transport to subsidise a ferry service to aid the beleaguered tourist industry in south-west Cork. If the Minister, Deputy Ó Cuív, can do it for the islands, surely the Government can do it for the south-west Cork region.

We now have no facilities to bring tourists into our region. Proper infrastructure is the key to a successful tourist business in that area. Every citizen in this country should be equally cherished, according to our Constitution. Actions speak louder than words. We have only three natural industries — agriculture, fisheries and tourism — and the first two are bedevilled by a quota system and the red tape of bureaucracy. Tourism has no quota. I ask the Minister to help to restore the industry and act before it is too late. The Cork-Swansea ferry service must be restored. It is of paramount importance to the area. No area in the country should be abandoned by the Government the way the south-west region has been abandoned.

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I am replying on behalf of my colleague, the Minister for Transport, Deputy Noel Dempsey. I thank Deputy Sheehan for raising this issue.

The Cork Swansea Ferries Company suspended its service in 2007. The Minister for Transport appreciates the concerns that have been expressed in the region in response to this development. The Minister understands that a number of interested parties and stakeholders have been in discussions with the Port of Cork Company about the possibility of commencing a new passenger and freight service out of the port. The Minister is also informed that a commercial examination of the route has been carried out which indicates that, subject to procuring a suitable vessel, the service could be feasible on a year-round basis. The Port of Cork Company will certainly do what it can to facilitate the resumption of the service.

The Minister for Transport is of the view that it is important that the market should offer a diverse range of maritime links both into and out of the State. That is vital to facilitating trade and tourism. It is hoped that the current efforts show that the service is commercially viable and that it can be resumed as soon as possible.

I will outline other recent developments in the maritime sector. The Minister for Transport has responsibility for national ports policy which provides a framework for the provision of commercial port infrastructure and services that are efficient, effective and adequate for the needs of our trading economy. In addition, the Minister for Transport is the primary shareholder in the ten State-owned port companies, including the Port of Cork Company. However, he has no role in the day-to-day operational matters of the company.

The principal objectives of the Port of Cork Company are to take all proper measures for the management, control, operation and development of its harbour. Current policy is to require the ports to operate commercially, without Exchequer support and to provide adequate in-time capacity for the future needs of the economy. The Port of Cork Company has a number of projects under development to significantly increase and improve the port facilities it has to offer within Cork harbour.

The Minister for Transport also has responsibility for policy in regard to the shipping and maritime commerce sectors, which are the largest direct employers in the Irish maritime economy. The Irish Maritime Development Office, IMDO, is the shipping sector's statutory, dedicated development and promotional agency. The Government has introduced a number of fiscal and strategic policy measures that have had significant positive impacts on the sector. Government policy to promote the shipping sector concentrates on fiscal areas, marketing and education.

As regards fiscal reliefs, a range of beneficial fiscal reliefs, with EU state aid approval, is in place for the shipping sector. These include a full refund to employers of social insurance contributions relating to seagoing employees, a unique €6,350 income tax allowance for seafarers who are at sea for more than 161 days and a €5,000 tax-free allowance for Irish seafarers.

As regards marketing, the Irish shipping industry is marketed through the Irish Maritime Development Office, IMDO. The IMDO pursues its promotional activities, supported by the Department as appropriate, through direct marketing, including contact through the embassy network and through the holding of information seminars for the industry.

The Government has also taken a number of initiatives in the area of maritime education. The €51 million National Maritime College of Ireland opened in autumn 2004 in Ringaskiddy, County Cork.

P J Sheehan (Cork South West, Fine Gael)
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That is cold comfort for the tourism industry.

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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Students pursuing careers at sea can now obtain qualifications in Europe's most modem nautical college. The Department of Transport and the IMDO keep in close touch with the college management on its future development strategy. The Government also provides grants through the Irish Maritime Development Office for the training of seafarers, including cadets. These developments illustrate well the many initiatives that the Government is taking to promote the Irish maritime sector activity both at sea and on shore.

P J Sheehan (Cork South West, Fine Gael)
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They are of no advantage to the tourism industry in west Cork.