Michael Ring (Mayo, Fine Gael)
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Question 505: To ask the Minister for Transport if he has had any meetings recently with Irish Rail; his plans to discontinue the freight service in the country; the Government's policy on the freight service; and if he has had any discussions with Irish Rail on its stopping the freight services. [19638/05]

Martin Cullen (Waterford, Fianna Fail)
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It is my policy that Irish Rail should remain in the rail freight business and I am aware that it has made great strides in restructuring this element of its operations. Irish Rail has had wide ranging consultations with business interests around the country to identify those freight activities best suited to rail transport. It has developed a business plan based on a freight strategy which is to breakeven by 2006, increase the profitability of the existing profitable business, withdraw from those businesses that are heavily loss making, and target trainload traffic.

The company has made significant progress in growing the rail freight business in areas where it holds a competitive advantage over road haulage, such as in the carriage of sugar beet, cement and pulpwood. Irish Rail continues to pursue a policy of growing its rail freight business where opportunities are presented. However, as in all businesses, it must adjust the freight business from time to time to reflect market realities. I support this position which has been conveyed by my officials to Irish Rail.