Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I thank Senator Healy Eames for raising this matter. As she has said, I am speaking on behalf of the Minister of State, Deputy McGinley. She will be aware that the Department of Arts, Heritage and the Gaeltacht is the principal Department charged with island development by supporting the improvement of infrastructure and assisting with the provision of essential services. The Department subsidises lifeline transport services for inhabited offshore islands. These comprise passenger and cargo ferry services with a connecting bus service where necessary. In addition, the Department subsidises an air service for the three Aran Islands, including Inis Mór, under a public service obligation contract. The Department also subsidises a management service for the aerodromes based on these islands. Transport services are subsidised for 19 offshore islands in counties Donegal, Mayo, Galway and Cork. These services provide safe, all-year round transport to and from the islands involved, thereby improving the quality of life for islanders, supporting sustainable island communities and promoting island tourism. Expenditure on these services was €5.9 million in 2013.

As Senator Healy Eames has said, the subsidised passenger ferry service for Inis Mór came to an end on 31 January 2013. The Department of Arts, Heritage and the Gaeltacht sought expressions of interest on etenders.gov.ie in the normal way for a further five-year contract up until 31 January 2018. No tender was received by the Department within the deadline set. In the absence of a tender, departmental officials held discussions with the ferry operator that had been providing the contracted service to explore the possibility of entering into a new contract for the service on the same terms as the previous contract. Unfortunately, these discussions were unsuccessful as the Department could not accept the operator's claim for a substantial subsidy increase on a service that is, by all accounts, profitable without a subsidy. The Department understands that the operator has continued to provide the same level of service since the end of the contract with the State but that the fares payable by island residents have increased, as the Senator has said.

I understand there is some uncertainty regarding the continuation of the service at the same level. When a representative of the operator met departmental officials recently, it was indicated that the company's circumstances have altered and that the company cannot guarantee it will be able to continue operating as previously. Departmental officials have also met representatives of the island co-op. The Minister of State, Deputy McGinley, is aware of their concerns regarding the current situation. I wish to make it clear to the Senator that the Minister of State is open to undertaking any reasonable steps that would assist in finding a resolution to the island community's dilemma. Any steps the Department of Arts, Heritage and the Gaeltacht might take must be within public procurement regulations and be achievable within the resources available to it. I understand there are no plans at present to re-advertise this contract as the Department does not have any evidence to indicate that the outcome of any procurement process will be different from the previous attempt. I assure the Senator that efforts will continue to ensure there will be a regular passenger ferry service to the island at a reasonable cost throughout the year. The Department is at all times available for discussions.