Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 165 to 169, inclusive, together.

The Government’s Islands Policy, Our Living Islands2023 -2032aims to ensure that our offshore islands continue to support sustainable and vibrant communities through economic and social development and thus improve the quality of life of those who live on the islands.

Access to year-round reliable and affordable cargo services is a fundamental issue of concern to island communities as it impacts on every aspect of island life. They provide support and sustainability to indigenous island manufacturers and businesses sectors, including tourism, shops, hotels and farming. Cargo services greatly improve the quality of life for the island communities.

My Department currently subsidises 9 heavy cargo contracts for 17 separate off-shore islands. In 2022, the most recent full year of service, 44,500 tonnes of heavy cargo were carried on these services. In addition to these dedicated cargo services, 4 passenger ferry contracts provide a light cargo element to their service, while 2 others are delivered using ‘Roll on/ Roll off’ vessels, which also allows the carriage of cargo.

None of these contracts are Public Service Obligation (PSO) contracts. A ‘contract for services’ approach is favoured, which ensures that the island community’s current (and future), needs and requirements remain central to the subsidised service. Services are sourced on the open market through public procurement competitions, where successful tenderers are provided with a subsidy to deliver services in accordance with the requirements of an agreed contract.

As cargo requirements vary from island to island, so too do the tender documents. Tenderers are required to provide vessels that are adequately equipped to deliver a service, as requested, and must also take into account the availability of key mainland and island infrastructure such as slipways, cranes, pontoons, cargo storage area etc., in their submissions.

Regarding the monitoring of a service, subsidised operators provide the Department with daily sailings logs that capture key performance indicators. This allows the Department to monitor the service to ensure contract compliance. In recent years, and as contracts are renewed, monitoring committees now form part of the service. The committees meet regularly during the year and review the service. They give the island community a forum to provide direct feedback to the Department regarding a subsidised service.

To ensure that a service remains affordable, the tender document for a service sets maximum fares that operators can charge. Cargo items are categorised by weight, size and/or volume, and charged against an agreed capped price list. The distance of an island from the mainland does not impact on these charges.

As the Deputy is aware the ‘Our Living Islands Action Plan 2023-2026,’ launched in June 2023, in conjunction with the islandspolicy, makes a clear commitment to “Review the cost of transporting goods on subsidised cargo services for future contracts, with particular emphasis on the carriage of building materials”. The Department intends to have this review completed by the end of 2024.