Trevor Ó Clochartaigh (Sinn Fein)
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Cuirim céad fáilte roimh an Aire Stáit. Táim thar a bheith buíoch dó as teacht isteach ar an ábhar seo. The ferry service to the Aran Islands and Inis Mór in particular is in effect the highway for people living on the island because it provides their access to and from the island. Until recent years there was a subsidy available to the operators of the service to serve all three islands. The Minister of State at the Department of Arts, Heritage and the Gaeltacht, Deputy McGinley, decided to unbundle that contract so that the service to Inis Meáin and Inis Oirr continued with a subsidy but there is no subsidy available for the service to Inis Mór. The logic was, I suppose, that because many tourists go to Inis Mór, it is a busy service and would be self-sustaining. It appears that is not the case.

Members of Comharchumann Forbartha Arann have raised this with me. They are very concerned. They met representatives of the Oireachtas in January and asked us to raise this issue. The local Deputies on the Government side assured us at that meeting that they would seek a meeting with the Minister of State on this issue because it is very serious. That has not happened. What engagement has there been between the Minister of State and the people of Inis Mór on this issue? The major issue raised by Comharchumann Forbartha Arann is that an unsubsidised ferry service cannot be guaranteed during the winter months, and it asks that this route be advertised for tender as soon as possible. The company running the service commercially says it is losing money during the winter months. There is no obligation on it to provide a service during the winter months and therefore the people of Inis Mór could be left without any service whatsoever.

The comharcumann also has a problem with levies imposed by Galway County Council and has asked the Minister of State to intervene. As islanders they feel this is an unfair tax and they vehemently oppose it. They have asked the Minister of State to intervene with the local authority to try to come up with another solution instead of a levy, which they maintain has an adverse effect on the numbers travelling to the island. The numbers have dropped dramatically and they have written to inform the Minister of State about this. They feel that Galway County Council as a public body should work in the interests of the island and not impose a tax on travel to the island. This Government abolished tax on flights in and out of the whole island because it was detrimental to tourism but allowing a county council impose a tax on people travelling to a smaller offshore island raises the same argument, as the figures show.

The co-op also notes that no other coastal island has such a levy, and the loss of between 40,000 and 50,000 people per annum travelling from Doolin to Inis Mór is due to this levy. This is generating a great deal of negative publicity and ticket prices will probably increase due to this levy, resulting in fewer people travelling. This is a serious problem for the people of the Aran Islands. They have forwarded the statistics to the Minister of State on the fall in visitor numbers. They feel the locals are being penalised because the cost of travelling from Inis Mór to Rossaveal has increased as a result of the subsidy's being discontinued.

It is unacceptable that since the meeting in January the Minister of State has not met the Comharchumann Forbartha Arann on this issue. I will call on him to have that meeting as soon as possible to see what can be done to rectify the situation. The tenders for the ferry service at least could be advertised to see what type of operators would pitch for them, how much it would cost and whether a subsidy could or needs to be reinstated for the ferry service.

Seán Sherlock (Cork East, Labour)
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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.

Trevor Ó Clochartaigh (Sinn Fein)
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Gabhaim buíochas leis an Aire Stáit agus molaim é as cúpla focal Gaeilge a úsáid ag an tús. The key line in the reply is that the Department does not have in its possession any evidence which would indicate the outcome of another public tendering process would differ dramatically. I contend that there cannot be any extra evidence unless there is a tender. The Minister needs to put the needs of the people on the island first and should meet representatives of Comharchumann Forbartha Árann Teoranta, as they may have the evidence sought by the Department. His first priority should be a year-round sustainable service to Inis Mór so they can continue to develop the island economically, socially, etc. I call on the Minister of State to ask another Minister of State, Deputy McGinley, to intervene and meet representatives of the co-op as soon as possible in this regard.

Seán Sherlock (Cork East, Labour)
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I acknowledge the Senator's contribution. I know the Minister will make himself available to seek a resolution to the matter and I will convey to him the Senator's contribution.