Joe McHugh (Donegal North East, Fine Gael)
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To ask the Minister for Transport, Tourism and Sport his views on the importance of cross-channel ferries to the Irish transport network and to the Irish tourism industry; his views on differentials in north European ferry route prices for car passengers and foot passengers; and if he will make a statement on the matter. [45353/12]

Leo Varadkar (Dublin West, Fine Gael)
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The Irish ferry market is an extremely important element of the Irish tourism transport network. There are currently six shipping lines providing passenger services, with approximately 500 sailings weekly between Ireland and Britain and continental Europe depending on the time of year.  The Irish passenger ferry market also played a vital role in keeping Ireland's foreign transport passenger networks open during the Volcanic Ash crisis in 2010, when it carried an additional 150,000 passengers over this period.

While the vast majority of our overseas visitors arrive in Ireland by air,  836,000 visitors came to Ireland by sea in 2011. Research has shown that visitors coming to Ireland by car are very important to our tourism industry as they tend to stay longer, they tend to tour around more (with consequential benefits for regional tourism) and they tend to spend more than those arriving by air. Accordingly, the state tourism agencies have continually targeted this segment and undertake co-operative marketing activity with ferry providers.

In terms of price differentials in northern European ferry routes, all ferry companies servicing routes to and from Ireland are independent commercial companies who operate in an open and competitive market.  Strong competition on a route is the most effective way to ensure consumers get the best value for money. Therefore, my Department through its agency, the Irish Maritime Development Office, works closely with all existing operators as well as promoting Ireland as a location for new services.

It should be noted that the fares charged by ferry companies are influenced by a number of factors. The length of journeys and fuel costs are the most significant factors contributing to the difference in cost between routes. For example, the distance between Dover to Calais is about 41kms while that between Liverpool to Dublin is nearly 220 km and Rosslare to Pembroke is about 123 kms. This means that, for example, three to four times more fuel is burned on routes on the Irish Sea than on the Dover to Calais route. The exact costs of fuel used by a vessel is also dependent upon a number of variables such as volatility of the fuel market, currency fluctuations, length of journey, speed, prevailing winds, weather, engines specification, type of vessel, age of vessel, the mix of HGV, car and foot passengers, etc. In 2011, oil prices rose sharply with Bunker prices increasing by 40% over the course of the year, adding significantly to costs borne by ferry operators. To remain competitive ferry companies also offer promotional fares at various times during the year, which might influence price comparisons.