Dáil debates

Tuesday, 16 April 2024

Saincheisteanna Tráthúla - Topical Issue Debate

Customs and Excise

11:15 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I thank the office of the Leas-Cheann Comhairle for selecting this Topical Issue and the Minister of State for being here this evening.

The Port of Cork plays a key strategic role in the economic life and development of the south and south-west regions. It is recognised as a port of national significance, tier 1. It is the Government's position that these ports are considered to be of national significance and must be capable of the type of port capacity required to ensure continued access to both regional and global markets for the trading economy. Indecon estimated the overall value of trade handled by the Port of Cork, based on modelling for 2012, 2023 and 2033 at €13.9 billion in 2012, growing to almost €28.7 billion in 2033. This supports 170,000 full time equivalent jobs, which will be doubled by 2033.

A border control post, BCP, is a designated entry point to the European Union market through which consignments of food, food contact materials, animals, feed and plants that are subject to increased import controls must enter the European Union. These import controls are carried out to protect animal and public health and animal welfare. These requirements include additional documentation and prior notification before arrival of the food to Ireland. They must enter Ireland through a specific entry point which is the border control post. All such products must be accompanied by a health certificate issued at origin and supported by a common veterinary entry document. There is a range currently of LoLo services operating between the European Union, the UK trans-shipment ports and the Port of Cork. Containers currently transiting through Dublin, therefore, could use feeder routings to Cork. A BCP in Cork could be an alternative, contingency and overflow facility should congestion arise at Dublin Port or Rosslare.

The construction of a new direct container service between Cork and the United States by Independent Container Line, ICL, would increase the number of boxes that would benefit from a control post in Cork. More than 2,000 containers have the potential to be examined at the Port of Cork and discussions with ICL support this estimate. New businesses that require BCP support face increased costs in trying to establish in Cork.

I am sure the Minister of State will be interested in the following point. More than 166 tonnes of pollutant emissions could be avoided if a BCP in Cork handled 2,000 diverted containers annually. Under current conditions, cargos of melons for instance coming to Cork from the Americas cannot be unloaded in the Port of Cork as they need to be checked at a designated BCP. As a result, the same cargo must go to Southampton, before being transferred onto another ship bound for Dublin. These are perishable goods so time is of the essence to get them off ships and onto the shelves. The reduction in the cost and time in delivering containers to companies now results in an additional cost of approximately €4,000 per container. Higher shipping costs have a negative impact on the consumer with higher end-user or purchasing prices. I ask the Minister of State in the short term to agree to the Port of Cork's request for a temporary derogation to be granted to customers upon application to the Department of Agriculture, Food and the Marine. The derogation should last for a specific period of three to six months to allow the import of goods without disruption as many goods requiring BCP inspection are essential.

A temporary derogation would offer the Port of Cork increased flexibility that would encourage importers to use Cork. Therefore, the goods would land in Cork, be transported to Dublin in the interim and be inspected there.

In the long-term, the Port of Cork sees the construction of a permanent fixed border control post situated at the Ringaskiddy base as the ultimate solution. I am interested in the Minister of State's response to this. It is good for business, the country and the consumer. It is good for emissions and pollution. It saves time and ensures that the product that is perishable lands in a timely fashion.

11:25 pm

Minister of State at the Department of Agriculture, Food and the Marine (Senator Pippa Hackett):

I thank Deputy Stanton for the opportunity to discuss the border control post designation at the Port of Cork. I am taking this on behalf of my ministerial colleague, the Minister, Deputy McConalogue.

Currently, Cork Port is a designated border control post for container shipments of wood and wood products only. Inspections of these products take place at the Tivoli container terminal near Cork city. I am advised that it is not possible at present to use this port as an entry point of regulated food products. I understand, however, that my Department has been assessing the feasibility of a limited derogation for certain seasonal low-risk commodities where there is legislative scope to enter outside of a border control post. A temporary derogation to use Cork Port for the import of melons for the 2024 season has been approved by my Department, with communication to stakeholders of the requirements and procedures issued recently. This will hopefully act as a much-needed trade facilitation measure for industry, helping to reduce freight costs and improve the shelf life of produce. However, it should be noted that outside of this temporary derogation, the physical infrastructure required for handling bulk wood products and that required for handling food products is very different.

Between 2015 and 2018, a number of meetings took place between my Department and the Port of Cork. I understand that in December 2018, the port authority advised that it did not intend to pursue the building of a border control post at that time, although it would consider doing so as a second phase of the development. The port authority has since submitted a business case for the building of a border control post that is capable of handling food product. Under the Union customs code, a border control post must be located in a customs-controlled area, necessitating consideration of any business case in this regard to be conducted in consultation with the Revenue Commissioners.

In recent years, following the Brexit referendum and the consequent increased volume of sanitary and phytosanitary official controls, my Department has managed a substantial expansion of our border control infrastructure to meet this demand. This involved a very considerable expansion of border control post infrastructure at Dublin Port, as well as the building of an interim facility at Rosslare Port. Construction of a permanent facility at Rosslare Europort is under way. Border control posts must also be developed, approved and operated in adherence with European regulations. Any change in the designation of Cork Port would ultimately require the endorsement of the Commission.

In determining if a location is viable for the establishment of a border control post, broad consideration and analysis must take place, including an assessment of both the need and the projected economic benefits of same. Consideration must be given to the costs of the establishment of the border control post as well as the longer-term running costs. Further regard must be given to the potential impact on our existing border control posts. A full border control post would also require close collaboration and co-ordination between my Department, Revenue and the HSE. The issue of whether an additional border control post might be required in the Port of Cork remains under consideration. Officials from my Department continue to analyse the requirements for this facility.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I thank the Minister of State for a very positive response. I welcome the fact that the derogation has been granted temporarily in recent days for the import of melons, which I also mentioned in my presentation earlier. I also welcome the fact that it remains under consideration. I urge the Minister of State to deepen that consideration and make it viable.

I understand that the cost of building a customs inspection facility is approximately €1 million and the cost of kitting it out is approximately €500,000. The total budget comes to roughly €3.5 million, which is not huge in the overall context when we bear in mind the actual benefits to the country as a whole. Cork has a catchment area that represents a large and strategically important part of the State's population and economic base. Almost two thirds of the port's customers are located in Cork while more than 70% are in the south-west region and 92% are in Munster. This has important implications in terms of the requirements of the port capacity to serve this catchment area.

Gross output in the manufacturing industry located in Cork city and county represents more than one third of output across the State as a whole. Cork Port is, therefore, already a very important economic facility for our country. If it had this border control post, it could add to the services provided. As I said, the emissions would be reduced. Cork itself would become more attractive. Even though we have extensions and expansions in Dublin and Rosslare - I understand there is also work going on in Belfast - very often we may see congestion there. Having a border control post in Cork would actually help as well in that regard. There are, therefore, considerable strong arguments for examining this presentation further.

I welcome the fact that the Minister said both now and last January when I first raised this matter that it remains under consideration. However, I ask the Minister of State this evening to ensure that it goes beyond consideration and that people roll up their sleeves and continue the good work they are doing to ensure a border control post is put in position in Cork.

Minister of State at the Department of Agriculture, Food and the Marine (Senator Pippa Hackett):

I thank the Deputy for those comments. I accept what he is saying. It is not a terribly large cost if it is €3.5 million. Again, however, that business case has been submitted. I am not sure of the status of that. I can certainly bring that back to the Minister, Deputy McConalogue.

As the Deputy said, Cork Port is an incredibly busy and strategically important port for Ireland and for trade. I do not know, but there may be further opportunities for other temporary derogations in the meantime. Certainly, however, there is continued interaction between my Department and the Port of Cork. Taking into account of those considerations in terms of the impacts on other border control posts and the cost implications, etc., those engagements need to continue. It would be good to come to some sort of answer sooner rather than later. I have been informed that officials from my Department will gladly receive any new information that the Port of Cork may well have gathered that might feed into that business case consideration. I thank the Deputy for raising this important issue.

Cuireadh an Dáil ar athló ar 11.07 p.m. go dtí 9.10 a.m., Dé Céadaoin, an 17 Aibreán 2024.

The Dáil adjourned at at 11.07 p.m. until 9.10 a.m. on Wednesday, 17 April 2024.