Seán Sherlock (Cork East, Labour) | Oireachtas source

Ta me ag labhairt inniú ar son an Aire Stáit Mac Fhionnlaoich a bhfuil aifeala air nach féidir leis a bheith i lathair de bharr go bhfuil sé ar ghnó eile.

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, which includes Inis Mór, under a public service obligation contract. In this regard the Department also subsidises a management service for the aerodromes based on these islands. In all, the Department subsidises transport services for 19 offshore islands in counties Donegal, Mayo, Galway and Cork. These services provide safe, all-year round transport services for the islands involved, thereby improving the quality of life for islanders and supporting sustainable island communities as well as promoting island tourism. Expenditure on these services was €5.9 million in 2013. The same allocation is available in 2014.

The contract for the subsidised passenger ferry service for Inis Mór came to an end on 31 January 2013. The Department sought tenders through a public tendering process, as it does with all its subsidised services, for a further five-year contract until 31 January 2018, but received no tender within the deadline set. In the absence of a tender, officials from the Department 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 continued to provide the service at the same level since the end of the contract with the State but that the fares payable by island residents were increased.

I understand that some uncertainty has recently arisen regarding the continuation of the service at the current level. A representative of the operator met with my Department and indicated that circumstances for the company have altered and that it cannot guarantee it will be able to continue operating as previously. Officials also met representatives of the island co-op and the Minister of State is aware of their concerns with regard to the present situation.

The Minister of State would like to make it clear to the Senator that he is open to undertaking any reasonable steps that would assist in finding a resolution to meet with the requirements of all parties. Any steps the Department might take must fall within public procurement regulations and be achievable within the resources available to it. There are no plans at present to re-advertise this contract as the Department does not have in its possession any evidence to indicate that the outcome of another public tendering process would differ dramatically from that which took place towards the end of 2012. As the Senator will appreciate, it is incumbent on the Minister of State to ensure public money is spent in the most cost-effective manner and achieves the maximum return for the State. The Department cannot justify subsidising a service if such subsidy is not warranted.

I assure the Senator that efforts will continue to ensure there will be a regular passenger ferry service to the island at reasonable cost throughout the year and Department personnel are always available for discussion.