Dáil debates

Thursday, 20 November 2025

Haulage Costs for SMEs: Statements (Resumed)

 

8:25 am

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South-West, Fianna Fail)
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I am glad the Ceann Comhairle addressed that issue in her comments. People are quick to blame wildlife and birds. It is the old trope of what is more important. The Ceann Comhairle is absolutely right. There are six months in the year when works can be done. Landowners have a role to play as well. Even within those six months, where a stretch of road is deemed to be dangerous or causing issues, the remit is within the local authority. Funding is, of course, an issue. The other way we can improve safety on our roads is by investing in them, improving surfaces and realignment. Fair play to her for commenting. I am sure she is biting her lip because there are loads of other suggestions she would love to make about how we can look after and protect this important industry and sector.

In fairness to the Minister of State, Deputy Canney, I know he listened carefully. I saw him making notes on a lot of the statements that were made. He is knowledgeable about this sector too. I am sure there are a lot of things he wants to do at pace but we know that within the confines of Government, it is not always easy to solve things quickly. I know he will agree with most of what was said but maybe not all. I know he was taking a lot of notes on that.

I reiterate that this Government recognises the need to support the haulage, logistics and supply chain sector, which is a key enabler for all other industries. It is important to address long-standing challenges such as driver shortages and to work with the sector on its transition to decarbonisation. The sector has faced multiple shocks in recent years and its response to the national and geopolitical crisis must be applauded. It has worked with policy makers to develop innovative and practical measures to keep our supply chains moving and viable into the future. We all agree that the road freight forum has provided an excellent platform for structured engagement between policymakers and key stakeholders. Policy should never be developed in a vacuum and the discussions at that forum and the willingness of the sector representatives to be open, constructive and pragmatic has been helpful for the officials in the Department of Transport.

Officials in the Department want to continue this spirit of collaboration to assist the sector to achieve the goals set out in the road haulage strategy and the actions identified by the sector in the logistics and supply chain skills group action plan. By working together, we are confident that we can improve current processes, build a resilient and skilled workforce equipped to meet the future needs of the sector and achieve our collective goals on the path to decarbonisation. The logistics and supply chain skills group is not a new initiative. It was established in 2019 with the key objective of supporting the promotion of careers, skills development and sustainable employment in the logistics and supply chain sectors in Ireland. It is chaired by the Department of Transport and includes haulage and logistics sector industry representatives, education and training providers and all relevant Government Departments and agencies. The Minister commends the group on its hard work and for identifying and leading on the implementation of actions to address gaps and challenges in the sector.

The Minister of State, Deputy Canney, mentioned the logistics and supply chain skills week during his opening remarks. This is possibly the most visible outcome of the working group. Skills week was first held in 2023 and showcased over 30 online and in-person events across the country. Initially it was intended as a one-off event but due to the success of that first event it has now become an annual fixture looked forward to by everyone in the sector. The event has grown year on year and now includes the annual transition year event that the Minister of State mentioned. I strongly encourage all companies and organisations to participate in next year’s events to help support their future employees gain the relevant skills needed in the sector. Other work being done via the group includes an assessment of future skills needs, examining the process of recruitment of drivers from outside the EU and European Economic Area with a view to simplifying the process and reducing the time it takes, looking after driver CPC training and recommending improvements, and improving awareness of the sector as an attractive career path for school leavers and those looking to change careers.

Decarbonisation of the haulage sector is a complex challenge but the results outlined in the FTAI’s report suggest a growing momentum within the sector to move to a more sustainable business model. This is a positive indicator that Government supports for operators to transition to alternatively fuelled vehicles are having the desired impact.

I thank those businesses that have availed of the supports to date. Without first movers, the path forward would be far more challenging for the sector.

Additionally, the heavy-duty vehicle electrification pathway working group has brought together industry representatives to share experience and best practice in progressing decarbonisation in the freight and logistics sector. The group has identified the availability of charging infrastructure as a critical enabler for this transition. The working group is finalising recommendations for workable solutions to these barriers. Separately, some funding has been made available for 2026 to advance considerations for a HDV charging hub.

While electrification is the preferred path to decarbonisation, I am sure all Members will agree that this will be a long journey, and we cannot afford to wait to reduce our emissions. The Minister of State, Deputy Canney, mentioned the results of a study on the use of HVO in his opening remarks. While those results were not as positive as we would have liked, it does not mean we can stop our considerations of how to encourage and maximise the use of alternative fuels. The Department of Transport has commissioned a study to conduct a hierarchy-of-use assessment of HVO in transport modes, including land transport, aviation and maritime, and non-transport sectors. The study will take account of sustainability, availability, alternative energy sources and incentives for supply in the different sectors. While the study will focus specifically on HVO, the concerns raised by the haulage sector in relation to alternative fuels will be fed into this study. I look forward to hearing the recommendations made.

Other initiatives the Department of Transport is undertaking to support the sector include the introduction of a new online road transport operator licensing system. The system was introduced on 10 November, providing user-friendly access for operators to apply for, renew and amend operator licences. The Department's road transport operator licensing division was in direct contact with each operator prior to going live with details on how to register for and use the new system.

While these examples demonstrate that a lot of progress has been made to address the challenges faced by road haulage operators, I think we can all agree that there is more work to be done. Officials from the Department of Transport and TII and members of the road freight forum have been discussing challenges raised in relation to tolls throughout the year. Some practical suggestions made by the road haulage sector have been tested on the N25 Waterford city bypass over the past few months. They include opening additional lanes to HGVs, providing additional contactless payment points at heights suitable for HGVs and relocating tag readers to allow earlier reading of tags and reduce the need for vehicles to stop at the barrier. While these are only small steps, they have been positively received by the haulage industry, which has noted the improvements made by the changes. TII is working with the operator of the M1 toll plaza and hopes to have similar measures in place at that site later this month or in December at the latest. Officials from the Department of Transport look forward to expanding on this discussion over the coming months to consider the longer term future of tolling in Ireland with continued input from TII and the haulage sector.

Increases in motor insurance premiums have been discussed multiple times recently. The Minister of State at the Department of Finance, Deputy Troy, provided a comprehensive statement on the matter on 12 November, including details of the measures introduced under the 2020 and 2025 action plans for insurance reform to address issues with the cost and supply of insurance.

The challenges faced by the road haulage sector are complex. We acknowledge the genuine concerns raised by the sector with many Members and with officials in the Department of Transport. We acknowledge many of the suggestions that have been made in the Chamber today as well. There are no simple solutions to the bigger questions of decarbonisation and the lack of skilled drivers. I am confident, however, that the structures established in recent years, the actions identified by industry itself and included in the logistics and supply chain skills group action plan, and the long-term framework provided by the road haulage strategy provide the necessary tools to tackle these issues head-on.

The Minister, Deputy O'Brien, the Minister of State, Deputy Canney, and officials in the Department of Transport are committed to continuing to work collaboratively with the sector over the coming years. I again thank all Deputies for their contributions.