Lisa Chambers (Mayo, Fianna Fail)
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273. To ask the Minister for Transport, Tourism and Sport his plans in the event of a no-deal Brexit, particularly in the context of the implications for the landbridge; and if he will make a statement on the matter. [11156/19]

Shane Ross (Dublin Rathdown, Independent)
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The European Commission’s legislative proposal aimed at ensuring basic road connectivity with the UK in a no deal Brexit will allow UK hauliers to access the EU market for a temporary 9 month period, subject to reciprocal measures being put in place by the UK to grant similar access to EU hauliers. This measure, if adopted, will significantly mitigate the risk to our hauliers of accessing the UK market and using the landbridge.

I am very concerned at the potential for serious disruption at UK ports, in particular Dover, and also in Calais. This may make the use of the landbridge at least in the short term commercially unviable for some operators.

I  updated cabinet on 15 January 2019 on the capacity on direct shipping routes to EU continental ports as a potential alternative to the landbridge. Based on consultations by my Department with the main shipping companies, I am advised that the market is sufficiently responsive to respond to the demands of Brexit. I have asked the Irish Maritime Development Office and my officials to continue to keep this matter under review.

The Irish Maritime Development Office (the “IMDO”) carried out a study for the Department concerning the implications of Brexit on the use of the UK landbridge. The study, published last year, found that 3 million tonnes of merchandise trade with the EU moves between Ireland and the EU continent via the UK landbridge. The IMDO estimates that this equates to approximately 150,000 Heavy Goods Vehicles each year and the total value of our trade using the landbridge was estimated to be €21 billion.  This route is a strategically important route to market for many Irish importers and exporters and certain sectors of the economy may be adversely affected, mainly those that trade in time sensitive goods, e.g. Agrifood and seafood.

The Landbridge Project Group, chaired by the Department of Foreign Affairs and Trade and including officials from my own Department, the Revenue Commissioners, the Department of Agriculture, Food and the Marine, and others has been working closely with the European Commission and other affected Member States (France, Germany, the Netherlands, Belgium, Denmark and Sweden) with a view to preparing EU ports to facilitate the transit of EU products through the UK once it becomes a third country through the use of EU rules on internal transit as set out under the Union’s Custom Code.  The EU has agreed that the UK may join the Common Transit Convention upon its departure from the EU on 29 March 2019, and a number of formal steps were taken to allow this to happen on 4 December 2018 which will enable the use of the EU’s internal transit procedure. The Landbridge Project Group has also visited France and the Netherlands, and will visit Calais on 6 March.

I have also met my UK counterpart, Secretary of State for Transport Chris Grayling and have set out the importance of continued transport connectivity between Ireland and the UK, highlighting the importance of the UK landbridge for Ireland as a route to European markets, and the need for Irish trade to move efficiently through ports. I also met France’s Transport Minister Borne on Brexit matters including the landbridge, in November, and France’s Minister of Europe and Foreign Affairs, Jean Yves Le Drian on 19 February.

Businesses must however prepare for Brexit and examine their supply chains. The Minister for Business, Enterprise and Innovation, Heather Humphreys TD, on 4 March urged businesses to make sure that they are ready to avail of the customs transit procedure for moving goods through the UK landbridge post-Brexit. The transit procedure allows goods to pass across customs borders with all duties and other charges suspended until arrival at their destination. In order to avail of the Transit procedure, businesses will need to have a Revenue-approved comprehensive financial guarantee in place. This comprehensive guarantee is required as financial security to cover all potential and actual customs debts such as customs and taxes.

Lisa Chambers (Mayo, Fianna Fail)
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274. To ask the Minister for Transport, Tourism and Sport the way in which he plans to ensure there is no disruption to supply chains both east-west and North-South in the event of a hard or no-deal Brexit; and if he will make a statement on the matter. [11181/19]

Shane Ross (Dublin Rathdown, Independent)
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A number of key supply chain risks have significantly reduced as a result of contingency measures proposed by the European Commission. The proposed measures were due to interventions by a number of Member States including Ireland. While these measures are temporary in nature, they will, if adopted, ensure the immediate continued access for our road hauliers to the UK market and also for direct flights to and from the UK, including for air freight. However, significant challenges remain and disruption cannot be fully avoided in all areas.

In relation to North - South, the Government is not planning for a hard border and the EU is fully supportive of this position.

In relation to east-west supply chains, the continued use of the landbridge as a key route connecting Ireland with the continent is a crucial concern given the level of imports and exports that are transported via this route, with 16% of the HGV traffic between Ireland and GB estimated to constitute landbridge traffic. The total value of our trade using the landbridge has been estimated to be approximately €21 billion. Goods using the landbridge include many time-sensitive or perishable goods, and are transported by truck on Roll-on / Roll-Off shipping services to and through the UK.  Dublin and Rosslare ports handle almost all of this traffic.

In a no-deal scenario, the ease with which these movements of goods currently take place will no longer be guaranteed. Additional customs, agriculture and health controls will be required at EU ports that trade with the UK.  In the case of the landbridge route, the ports of Dublin, Rosslare, Holyhead and the Dover-Calais link are of paramount concern.   In Ireland, the OPW, the Department of Agriculture, Food and the Marine, the Department of Health and the Revenue Commissioners are already preparing by developing the necessary plans within Dublin and Rosslare Ports to allow for these controls. I am aware that similar preparations are ongoing in Calais.

Some trade currently using the landbridge route may, depending on the nature of the product, switch to the direct routes to the continent. For others, some delays at UK and other EU ports may not be such as to constitute a significant deterrent to the continued use of the landbridge. However, the use of the landbridge for some other products that are perishable or very time sensitive may become unviable and may also not be viable on the longer direct maritime links.

I updated cabinet on 15 January 2019 on the capacity on direct shipping routes to EU continental ports.  In doing so, I set out the importance of the UK landbridge as a critical route for Irish trade and the importance of alternative direct shipping routes should traffic on the landbridge become disrupted as a result of Brexit. My view then was that sufficient capacity on the direct shipping routes to continental EU ports was available to meet the demands of Brexit and that the market was sufficiently flexible to cater for any increase in demand.

This understanding of the likely response of shipping companies to Brexit-related challenges was tested in a series of meetings with senior representatives of shipping companies, including both immediately before and after I briefed Government.   While I remain of this view and I re-iterated it at Cabinet yesterday, I have asked that the IMDO and my Department continue to keep this under review.