Darren O'Rourke (Meath East, Sinn Fein)
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5. To ask the Minister for Transport, Tourism and Sport his views on whether the State should be involved in creating and expanding shipping routes directly to the Continent in preparation for Brexit; the engagements he has had to date with shipping companies on this issue; and if he will make a statement on the matter. [35957/20]

Darren O'Rourke (Meath East, Sinn Fein)
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An estimated 150,000 heavy goods vehicles use the British land bridge every year to move goods between Ireland and the Continent. My question is about the preparations the Department is making to enable that movement of goods to continue given the challenges presented by Brexit.

Hildegarde Naughton (Galway West, Fine Gael)
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As signalled since the publication of the report, The Implications of Brexit on the Use of the Landbridge, by the Irish Maritime Development Office, IMDO, in 2018, it has been a matter of continuing concern that there is likely to be disruption to access to the British land bridge when customs and border controls between the EU and the UK are introduced at the end of the year. Since the publication of the report, my Department, in conjunction with the IMDO, has been keeping the issue of direct shipping routes to the Continent under close review, particularly in the context of the Covid-19 pandemic. The IMDO recently reviewed the conclusions and recommendations in the 2018 study and the issue of direct maritime connectivity and capacity to continental Europe at the end of the transition period. The IMDO analysis shows there is more than sufficient capacity on existing direct services in the roll-on, roll off - ro-ro - network between Ireland and mainland Europe to cater, if required, for all of the land bridge traffic, which is currently estimated at approximately 150,000 trucks per annum. It is also considered that the shipping industry is resilient, responsive and capable, without State intervention, of adjusting to and satisfying market demand.

My Department has had very regular discussions with shipping companies and other maritime stakeholders about this issue since January 2019. We have consistently received strong assurances from the shipping companies that if there is an increase in demand for shipping capacity on direct routes to continental Europe, they will respond. Significant additional shipping links have been added on direct routes to the Continent, even during the Covid-19 pandemic in summer 2020, with further improvements and increases in capacity announced to take place from January next. Indeed, in the past week, we have seen moves from Irish Ferries and Stena Line to change and increase their direct sailings to Cherbourg from January. Those changes mean that, between them, there will be a daily service from Ireland to France, resulting in a further increase in capacity on that direct continental Europe route.

Additional information not given on the floor of the House

The Minister and I met with the shipping companies regarding maritime connectivity in mid-July of this year. I met with them again recently to discuss this issue further. The companies confirmed the reassurance already given regarding their ability to respond to demand as needed. This engagement is in addition to the fortnightly meetings which take place between officials in my Department and the shipping companies as well as separately with haulage representatives. My Department has also had confidential briefings with individual shipping companies in which they have outlined a range of options they can implement quickly from January, if required.

The Government considers that direct State intervention to establish State shipping links in the context of Brexit would likely undermine a market response and result in an insufficient, inadequate and costly intervention being put in place. Such an intervention would be likely to result in legal challenges from incumbent shipping providers, breaches of EU state aid rules and consequent requirements for repayment of the state aids with interest, with resulting adverse impacts on the viability of any companies receiving such aid. It could also create difficulties for the State in extricating itself from the shipping market.

A communications campaign is currently under way, ACT Now and Prepare to Switch, which encourages importers and exporters to focus immediately on the direct route option. The campaign encourages stakeholders to assess their current routes to market, communicate their future needs clearly to shipping companies and trial alternative services in order that disruption to the British land bridge route does not preclude Irish businesses from accessing foreign markets.

My Department will continue to closely monitor and review the evolving situation regarding maritime connectivity to continental ports. We will remain in close consultation with the maritime sector and other relevant stakeholders on this issue.

Darren O'Rourke (Meath East, Sinn Fein)
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The Minister of State will be aware that there was a significant reaction from the haulage industry to the IMDO's report. Hauliers contested the conclusions that were drawn in it, particularly in regard to ro-ro capacity. They also pointed out that we do not have daily ferry connections. When I raised this issue previously with the Minister of State, she said that individual hauliers should contact ferry companies to try to stoke up demand. I take it from her reply that the ferry companies are responding to this demand and that we will have daily direct-to-the-Continent departures and arrivals from January.

Hildegarde Naughton (Galway West, Fine Gael)
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In regard to the IMDO report, it is important to note that its analysis took account of the capacity across the ro-ro network and on services between Ireland and continental Europe. As recently as last week, Stena Line and Irish Ferries both indicated that they will be putting on a daily direct service from January. Indeed, they have been responding to demand throughout the pandemic and they put on extra services during the summer. The Minister and I met with representatives of the shipping companies last July and I met with them again last week. My officials have had fortnightly meetings with all stakeholders in the maritime sector and we have been assured that they will respond to demand. The ACT Now and Prepare to Switch campaign is not just a call on the hauliers but also on importers and exporters to engage directly with shipping companies in regard to their needs.

Darren O'Rourke (Meath East, Sinn Fein)
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I attended a webinar last Friday, which was addressed by the Minister, and this was, understandably, one of the significant issues that came up for discussion. I welcome the Minister of State's further elaborations in that regard.

Where are we at in terms of preparations for the checks and controls that will be required on our side, including the three-step process? What action has been taken to ensure hauliers are familiar with those processes in advance of 1 January next year? What engagement has the Minister of State had with counterparts in the North on an all-Ireland approach to these issues? There is a significant haulage industry and a significant port industry in the North.

Hildegarde Naughton (Galway West, Fine Gael)
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As we move towards the end of the Brexit transition period, there is a lot of engagement happening at a cross-departmental level, incorporating Dublin Port, the Office of Public Works, Revenue and my Department, to ensure we are as well prepared as possible. A huge amount of work has gone into this over the past number of years. There have been many campaigns aimed at preparing businesses, including hauliers, for customs checks. I thank the haulage industry representatives for their ongoing engagement with my Department. We know that the situation from 1 January will not be easy and there will be delays at the UK land bridge. That is why our ACT Now and Prepare to Switch campaign is asking importers and exporters to assess their needs in respect of the direct routes to the Continent, communicate with the shipping industry and trial alternative routes in advance of 1 January. I have been engaging as well with the Minister of State with responsibility for trade, Deputy Troy, in calling for businesses to prepare in the two months remaining before the start of the new year.