Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

233. To ask the Minister for Transport, Tourism and Sport if he will work with all stakeholders to avoid post-Brexit disruption on the UK transit route by helping to establish a direct ferry service for lorries to continental Europe from Rosslare Port to the French Port of Le Havre; if his attention has been drawn to the disruption already happening at UK ports such as Liverpool and Pembroke with delays of up to two days being experienced by hauliers; the interaction that has taken place between his Department and exporter and importer groups to make progress on the establishment of a new direct ferry service to continental Europe; and if he will make a statement on the matter. [36788/20]

Hildegarde Naughton (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As regards some delays happening at UK ports such as Liverpool and Pembroke, this issue was raised by haulier representatives recently with my Department.  I understand that these delays relate to operational issues at GB ports and are therefore matters for the GB authorities.

On the issue of maritime connectivity to Continental Europe, as signalled since the publication of the report ‘The Implications of Brexit on the Use of the landbridge’ by the Irish Maritime Development Office (IMDO) in 2018, it has been a matter of continuing concern that there is likely to be disruption to the GB landbridge when customs and border controls between the EU and the UK are introduced at the end of the year. Since the publication of the report, my Department, in conjunction with the IMDO, has been keeping the issue of direct shipping routes to the Continent under close review, particularly in the context of the COVID-19 pandemic.

The IMDO recently reviewed the conclusions and recommendations in the 2018 GB Landbridge Study and in particular the issue of direct maritime connectivity and capacity to Continental Europe at the end of the transition period.  The IMDO analysis shows that there is more than sufficient capacity on existing direct services in the RoRo network between Ireland and mainland Europe to cater, if required, for all of the landbridge traffic currently estimated at around 150,000 trucks per annum.  The shipping industry serving Ireland have shown that they are resilient, responsive and capable, without State intervention, of adjusting to and satisfying market demand.

My Department has had very regular discussions with shipping companies and other maritime stakeholders about this issue since January 2019.  We have consistently received strong assurances from the shipping companies that if there is an increase in demand for shipping capacity on direct routes to Continental Europe, they will respond.  Additional shipping links were added on direct routes to Continental Europe even during the Covid-19 pandemic in Summer 2020, with further improvements and increases in capacity announced to take place starting from January 2021.  Indeed in the last week, we have seen moves from Irish Ferries and Stena Line to change and increase their direct sailings to Cherbourg from January 2021 so that between them there will be a daily service available from Ireland to France.  This will further increase capacity on that direct Continental Europe route.

The Government considers that direct State intervention to establish State shipping links in the context of Brexit would likely undermine a market response resulting in an insufficient, inadequate and costly intervention being put in place. Such an intervention would be likely to result in legal challenges from incumbent shipping providers, would result in breaches of EU state aid rules and consequent requirements for repayment of the state aids with interest, with resulting adverse impacts on the viability of any companies receiving such aid.  It could also create difficulties for the State in extricating itself from the shipping market.

As set out in the Government’s updated Brexit Readiness Action Plan, published on 9th September 2020, businesses are being asked to consider moving, in advance of the end of the transition period, to direct route options for the movement of goods from Ireland to the Continent, to avoid potential delays and the new procedures that will be introduced associated with using the UK landbridge.  Shipping companies should also continue to assess expected future demand requirements and remain ready to respond to increased capacity demands, and all the indications are that this is happening.

A communications campaign is currently underway, "ACT now and Prepare to switch", which encourages importers and exporters to focus on the direct route option now. This campaign encourages stakeholders to Assess their current routes to market, Communicate their future needs clearly to shipping companies, and Trial alternative services so that disruption to the GB Landbridge route does not preclude Irish businesses from accessing foreign markets.

My Department will continue to closely monitor and keep under review the evolving situation regarding maritime connectivity to continental ports and will remain in close consultation with the maritime sector and other relevant stakeholders, including importer/exporter/freight logistics associations and companies, as we all prepare for 1 January 2021.