CABOTAGE
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CRISP
• The introduction of cabotage on 1 July was not greeted with much enthusiasm from Northern Ireland hauliers. They had been told, just a few months earlier, that they would be eligible for just 50 permits.
'The Republic, however, was awarded just under 600 permits.
Industry pundits say it is too early to judge the effects of cabotage between the North and South. But many are convinced southern firms could flood the Northern Irish transport market or grab the bulk of international trade going out of Ireland.
Operators have already written to the International Road Freight Office to complain about the allocations. The Transport and General Workers' Union has pressed the Department of the Environment in Northern Ireland to redress the permit balance between North and South.
"It will have a very serious effect because we are talking about a country just a few miles up the road," says Eddie Sheridan, group trade officer for the TGWU.
"Northern Ireland's permits are part of the UK award of over 1,000. So 585 Southern Irish hauliers will be able to bid for business in Northern Ireland."
Details of cabotage allocations are sketchy. But the IRFO says two batches of permits have already gone out_ In the first batch, 828 permits were allocated to 61 firms. Only five Northern Ireland transport companies got permits.
INSISTENCE
There have also been complaints about the Department of Transport's insistence for proof of international contracts before awarding cabotage permits.
"You can't get a contract until you start doing cabotage work," says Leslie McDowell, managing director of Highway Transportation in Belfast.
This criticism is echoed by many UK hauliers. But Northern Ireland transport firms often feel more bitter when they compare this DTp system with the Republic's.
According to the Irish Road Haulage Association, no-one has been refused permits in the Republic. "They have accommodated every body — even though applicants are not very specific about what the permits are needed for," claims general secretary Stephen Spoor.
However, not all Northern Ireland hauliers are pessimistic about the future. Leslie McDowell might not be happy with cabotage allocations but he does not believe Northern Ireland will see a flood of Southern operators.
"The majority of costs are very different between North and South. Therefore, I believe Northern Ireland operators can and will continue to run operations much cheaper than in the South." D by Tanya Cordrey