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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Annual Report 2001

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Department of Public Enterprise

An Roinn Fiontar Poibl

Department of Public Enterprise

Developing Transport, Energy and Communications in modern Ireland

2001

Tuarascail Bhliantuil

Annual Report 2001

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

AnnualReport

© Department of Public Enterprise 2002

Department of Public Enterprise 44 Kildare Street, Dublin 2 Tel 01-6707444 Fax 01-6709633 Email: [email protected] Website: http://www.dpe.ie Copies of this report may be downloaded from www.dpe.ie in both html and pdf format. The Department may be contacted from any part of the country for the price of a local call by dialing 1890-443311

An Roinn Fiontar Poiblí 44 Sráid Chill Dara, Baile Átha Claith 2 Tel 01-6707444 Facs 01- 6709633 Rphoist: [email protected] Laithair Eangach: http://www.dpe.ie Is féidir teangmhail a dheanamh leis an Roinn o aon phairt den tir le haghaidh praghas glaoch aitiuil ma dhiailionn tu 1890-443311

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Department of Public Enterprise

Roinn Fiontar Poiblí

contents

3 6 9 15 25 31 37 39 43 45 49 52 Statement of the Minister Statement of the Secretary General Aviation Sector Inland Transport Sector Energy Sector Communications Sector North/South Co-operation Departmental Issues Special Feature: PMDS in Public Enterprise Shareholder Issues Regulatory Issues Appendices · Legislation Passed/Progressed in 2001 · Revised estimates for Public Enterprise · Organisation Structure

It is the policy of this Department to make all legislation, legislative proposals and consultation papers available on the Department's website (www.dpe.ie). The website also contains a number of links to other Government Departments and organisations. Should you have any difficulty in accessing any of the documents referred to in the report please contact the press office at (01) 604 1089 or lo-call 1890443311 © Department of Public Enterprise Annual Report 2002

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Annual Report 2001

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Statement of the

Minister

I am very pleased to introduce my Department's Annual Report for 2001. The report outlines the activities and achievements in each of the main sectors under my responsibility during 2001. The calendar year 2001 was a difficult one. There were a number of serious challenges presented from a variety of sources. The global economic slowdown, already evident from the beginning of the year, was compounded locally by the impact of the travel and access restrictions due to the foot and mouth crisis, and generally by the September 11 terrorist attacks in the USA. Nevertheless significant advances were recorded in several of the sectors for which I have responsibility. Excellent progress was made in the telecommunications area with regard to projects detailed in the National Development Plan. Significant grant aid was given to projects involving the provision of broadband access. This is part of a continuing programme to eliminate any infrastructural problems in the country as we strive to develop a digital economy in Ireland. In May, my Department took responsibility for The Digital Hub project, which was originally initiated under the aegis of the Department of the Taoiseach. This exciting project aims to cluster Irish and International new media companies in Dublin in a bid to make Ireland an international centre for high-tech research and cutting edge digital industry. The first steps in the Digital Hub strategy were taken when funding was made available to purchase property in and around Dublin's city centre area, in order to provide space for digital enterprises and related facilities.

Further progress was made on railway safety with a continuation of the five-year investment programme. The latest independent audit of railway safety was published in August and gave an encouraging assessment of the progress made by Iarnrod Éireann. The Railway Safety Bill was published in December and when enacted, it will provide a modern and effective framework for the regulation of railway safety. During 2001, we continued to improve the public transport system in line with the objectives set out in the National Development Plan, with enhanced development of mainline rail, suburban rail and bus services. More funding was also put into the development of the Light Rail project for Dublin. Over 345 million was invested by the Exchequer in Public Transport and this expenditure is continued evidence of my commitment, and that of the Government, to provide the State with a modern, effective public transport system. I was pleased to announce, in December of 2001, a further increase in the Exchequer allocation, for capital spending, the total figure amounted to 434 million for 2002. The aviation sector was most immediately affected by the September 11 crisis. Shortly after the attacks, aviation insurers gave notice that they were withdrawing third-party insurance cover in respect of war and terrorist risks from airports, airlines and aviation support firms. I secured the Government's approval to step in and issue letters of comfort as an interim measure to keep the airlines flying and our vital airways open for business. At the same time, my Department urgently drafted the Air Navigation and Transport (Indemnities) Act 2001, and formal indemnities under the Act issued in December. An intense and successful effort was undertaken by all stakeholders in Aer Lingus to put in place a survival package for the airline in a very short timescale. Its already difficult financial position, resulting from the fall-off in business travel because of the economic slowdown in travel coupled with the impact of foot and mouth travel restrictions, was compounded by the abrupt drop in transatlantic traffic slowdown.

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Department of Public Enterprise

Roinn Fiontar Poiblí

My colleague, Minister of State Joe Jacob T.D. has special responsibility for the Energy sector. Together we were able to make progress on a wide variety of issues. The natural gas network was expanded. A new peat fired electricity station near Edenderry, was completed. Whitegate oil refinery and the Whiddy Island oil terminal of the Irish National Petroleum Corporation were sold. We ratified the International Atomic Energy Agency's Joint Convention on Safety of Spent Fuel Management and Safety of Radioactive Waste Management. On the regulatory side we published the Gas (Interim) (Regulation) Bill, which aims to establish independent regulation in the gas sector and to introduce greater liberalisation of the gas market. In the electricity sector, EirGrid, was incorporated on February 7 2001. These latter two initiatives continue my policy of putting in place independent regulators to monitor the sectors for which I have responsibility. This is the fifth consecutive year for which I have had the privilege to report on the progress achieved in the transport, energy and communication sectors. I know that the environments in each of those sectors have radically changed and improved since this Government has had responsibility for them. While 2001 was perhaps our most difficult year to date, it can be seen from this report that much has been achieved despite the adverse external conditions that we encountered. Finally, I would like to take this opportunity to thank the management and staff of the Department, and our associated agencies for their contribution in progressing the Government's agenda in the important sectors for which I have responsibility. Their dedication and work ethic has once again been outstanding.

Ráiteas an Aire

Tá an-áthas orm ceann a bhaint de Thuarascáil Bhliantúil mo Roinne don bhliain 2001. Leagann an tuarascáil amach na gníomhaíochtaí agus na héachtaí i ngach ceann de na príomhearnálacha faoi chuimsiú mífhreagrachta i gcaitheamh 2001. Bliain deacair a bhí i mbliain féilire 2001. Bhí roinnt dúshlán tromchúiseach ann a tháinig romhainn ó fhoinsí éagsúla. Cuireadh leis an moilliú domhanda san eacnamaíocht, a bhí le tabhairt faoi deara cheana ó thús na bliana, ar bhonn áitiúil de thoradh ar thionchar na srianta taistil agus rochtana de bharr ghéarchéim an Ghalair Chrúb is Béil, agus go ginearálta de bharr na n-ionsaithe sceimhlitheoireachta sna Stáit Aontaithe ar 11 Meán Fómhair. Ina dhiaidh sin agus uile, rinneadh forás suntasach ina lán de na hearnálacha a as a bhfuil freagracht orm. Rinneadh dul chun cinn iontach i réimse na teileachumarsáide maidir le tionscadail a sonraíodh sa Phlean Náisiúnta Forbartha. Tugadh cúnamh suntasach deontais do thionscadail a bhain le rochtain leathanbhanda a chur ar fáil. Is cuid é seo de chlár leanúnach le haon fhadhbanna infrastruchtúir sa tír a dhíothú agus muid ag féachaint go crua le heacnamaíocht digiteach a fhorbairt in Éirinn. Ghlac mo Roinn freagracht i mí na Bealtaine as an tionscadal um an Mol Digiteach, a tionscnaíodh ar dtús faoi choimirce Roinn an Taoisigh. Tá sé díaidhm ag an tionscadal corraitheach seo comhlachtaí Éireannacha agus Idirnáisiúnta a phléann leis na meáin chumarsáide nua, a chnuasú i mBaile Átha Cliath mar iarracht lárionad idirnáisiúnta i gcomhair taighde ardteicneolaíochta agus tionscail úrnua cheannródaíche digitigh a dhéanamh díÉirinn. Tógadh na chéad chéimeanna i straitéis an Mol Digitigh nuair a cuireadh maoiniúchán ar fáil le maoin a cheannach i limistéar lár chathair Bhaile Átha Cliath agus timpeall air, chun spás a sholáthar i gcomhair fiontair dhigiteacha agus áiseanna a bhaineann leo. Rinneadh breis dul chun cinn ar an tsábháilteacht iarnróid leis an gclár infheistíochta cúig bliana ag dul ar aghaidh. Foilsíodh an t-iniúchadh neamhspleách is deireanaí ar an tsábháilteacht iarnróid i mí Lúnasa agus thug sé measúnacht spreagúil ar an dul

Mary O'Rourke, T.D. Minister for Public Enterprise

April 2002

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Annual Report 2001

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chun cinn a rinne Iarnród Éireann. Foilsíodh an Bille um Shábháilteacht Iarnróid i mí na Nollag agus cuirfidh sé frámaíocht nuaaimseartha éifeachtach ar fáil le haghaidh rialúchán na sábháilteachta iarnróid nuair a achtófar é. Leanamar le feabhsú an chórais iompair phoiblí i gcaitheamh 2001 de réir na gcuspóirí a leagadh amach sa Phlean Náisiúnta Forbartha, le forbairt mhéadaithe ar sheirbhísí na bpríomhlínte iarnróid, na línte iarnróid bhruachbhaile agus ar sheirbhísí bus. Cuireadh tuilleadh maoiniúcháin isteach i bhfobairt tionscadal an Iarnróid Éadroim i gcomhair Baile Átha Cliath freisin, breis agus Ä345 milliún ón Státchiste in Iompar Poiblí agus is fianaise leanúnach an caiteachas seo ar an tiomantas atá agamsa, agus ag an Rialtas, le córas iompair phoiblí nua-aimseartha éifeachtach a chur ar fáil don Stát. Bhí áthas orm méadú breise i leithdháileadh an Státchiste i gcomhair an chaiteachais phoiblí a fhógairt i mí na Nollag 2001. Bhí Ä434 milliún san fhigiúr iomlán i gcomhair 2002. Is ar earnáil na heitleoireachta is túise a chuaigh géarchéim 11 Meán Fómhair i bhfeidhm. Thug árachóirí eitleoireachta fógra go gairid i ndiaidh na n-ionsaithe go raibh siad ag tarraingt siar cumhdach árachais tríú pháirtí maidir le priacail chogaidh agus sceimhlitheoireachta ó aerfoirt, aerlínte agus chomhlachtaí tacaíochta eitleoireachta. Bhain mé ceadú an Rialtais amach le dul isteach agus litreacha sóláis a eisiúint mar bheart eatramhach leis na haerlínte a choinneáil i mbun eitilte agus ár gcuid aerbhealaí ríthábhachtacha a choinneáil oscailte i gcomhair gnó. Dhréachtaigh mo Roinn an tAcht um Loingseoireacht agus Iompar Aeir (Slánaíochtaí) 2001 go práinneach ag an am céanna, agus eisíodh slánaíochtaí foirmiúla faoin Acht i mí na Nollag. Rinne na geallchoimeádaithe uile in Aer Lingus dianiarracht, ar éirigh léi, le pacáiste marthanais a chur i bhfeidhm i gcomhair na haerlíne in achar an-ghairid. Ghéaraigh an titim thobann sa trácht Trasatlantach ar a staid airgeadais, a bhí doiligh cheana féin de thoradh ar an titim sa taisteal gnó de bharr an mhoillithe eacnamaíche, anuas ar thionchar shrianta taistil chrúb is béil. Tá freagracht speisialta ag mo chomhghleacaí, An tAire Stáit Joe Jacob T.D., as an earnáil Fuinnimh. Bhíomar in ann dul chun cinn a dhéanamh le chéile ar réimse leathan de cheisteanna éagsúla. Ina

measc seo bhí leathnú an ghréasáin gháis nádúrtha, cur i gcrích móinstáisiúin nua leictreachais i ngar díÉadan Doire, díol scaglann ola an Gheata Bháin agus theirminéal ola nua Fhaoide de chuid Corparáid Náisiúnta Pheitriliam na hÉireann, agus Éire a bheith ag daingniú Chomhchoibhinsiún na Gníomhaireachta Idirnáisiúnta um Fuinneamh Adamhach ar Shábháilteacht Bhainisteoireachta Breosla Õdithe agus Shábháilteacht Bhainisteoireacht Dramhaíola Radaghníomhaí. Maidir le cúrsaí rialúchain, dífhoilsíomar an Bille Gáis (Eatramhach) (Rialáil), a bhfuil sé díaidhm leis rialúchán neamhspleách san earnáil gháis a chur ar bun agus liobrálú breise den mhargadh gáis a thabhairt isteach. Corpraíodh EirGrid san earnáil leictreachais ar 7 Feabhra 2001. Leanann an dá thionscnamh deiridh seo de mo pholasaí maidir le rialtóirí neamhspleácha a chur i bhfeidhm le monatóireacht a dhéanamh ar na hearnálacha as a bhfuil freagracht orm. Is é seo an cúigiú bliain as a chéile a bhfuil sé de phribhléid orm tuairisc a thabhairt ar an dul chun cinn a baineadh amach sna hearnálacha iompair, fuinnimh agus cumarsáide. Is eol dom go bhfuil athrú agus feabhas raidiceach tagtha ar na dálaí i ngach ceann de na hearnálacha sin ó bhí freagracht ar an Rialtas seo astu. Cé go mbífhéidir go raibh 2001 ar an mbliain ba dheacra dá raibh againn go nuige seo, is féidir a fheiceáil ón tuarascáil seo gur baineadh cuir mhór amach in ainneoin na gcoinníollacha neamhfhabhracha seachtracha a tháinig romhainn. Faoi dheireadh, ba mhaith liom an deis seo a thapú le buíochas a ghabháil le bainistíocht agus foireann na Roinne, agus leis na háisínteachtaí a bhaineann linn, as ucht ar thug siad dúinn le clár oibre an Rialtais a chur chun cinn sna hearnálacha tábhachtacha as a bhfuil freagracht orm. Arís eile, bhí a gcuid díograise agus a neitic oibre ar fheabhas ar fud.

Máire Uí Ruairc, T.D. Aire Fiontar Poiblí

Aibreán 2002

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Department of Public Enterprise

Roinn Fiontar Poiblí

Statement of the

Secretary General

I am very pleased once again, to have an opportunity to present the Department's Annual Report for 2001. I hope you find this Report informative and that it gives you an insight into the work of the Department of Public Enterprise. I consider that timely reporting of our activities is very important and, therefore, this year's Report is different from those of previous years as it does not contain the Financial Statements of the Department. These will not be available until much later in the year as they are required to be audited before publication. Separating out the Financial Statements and issuing it later in the year in a separate document allows us to report on the activities of the Department and our progress against our Statement of Strategy in a more timely fashion. The Financial Statements will be issued as a supplement to this report after they have been audited. A considerable amount has been achieved in all the sectors for which the Department has responsibility. This is due, in no small way, to the efforts of the staff of the Department. Many Divisions of the Department were effected by the global economic downturn and the events of September 11 in the USA. This put additional pressure on staff but their response to the challenges encountered during the year was exceptional and I am most grateful for that. The reaction of staff to the dramatic global changes within the sectors was a good example of how organisations need to be prepared to embrace changes and display flexibility particularly when dealing with major unforeseen events. We

are fortunate in having very good staff within the Department who are enthusiastic about the change agenda in the public sector and accept change as the normal order of things. It is also my belief that the partnership process, which has been operating in the Department for some years now, has contributed in a different but equally significant way to enhancing the working environment in the Department. The willingness to embrace change within a partnership approach allows staff to positively react to challenges when they appear on the horizon. One of the key modernisation items on which the Department made significant progress during 2001 was the continued roll out of the Performance Management and Development System (PMDS). I am sure that the PMDS will continue to be of great assistance to us over the coming years in improving the way we set our strategic goals, and in delivering on those goals. It aligns the role of each member of staff to the objectives set out in the Department's Statement of Strategy, and in turn, it allows for ongoing monitoring of delivery of the outputs. A key ingredient of the Performance Management and Development System is individual staff development. Each member of staff has a personal development plan which links into the Department's ambitious training programme. I trust all who read the special feature on the implementation of the PMDS in this Report will be as impressed as I have been with the achievements to date. In concluding I would like to express my thanks to Minister, Mary O'Rourke T.D. and Minister of State, Joe Jacob T.D for their ongoing support, encouragement and leadership.

Brendan Tuohy Secretary General

April, 2002

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Annual Report 2001

pg. 07

Ráiteas an

ghnáthphróiseas an tsaoil. Tá mé den tuairim chomh maith gur chabhraigh próiseas na comhpháirtíochta, atá i bhfeidhm sa Roinn le roinnt blianta anois, ar bhealach difriúil, ach chomh tábhachtach céanna, le timpeallacht oibre na Roinne a shaibhriú. Ligeann an toilteanas le glacadh le hathruithe faoi chuimsiú chur chuige comhpháirtíochta don fhoireann freagairt go dearfach do dhúshláin nuair a thagann siad romhainn. Ar cheann de na príomhnithe nuachóiriúcháin, ar a ndearna an Roinn dul chun cinn suntasach i gcaitheamh 2001, bhí tionscnamh leanúnach an Chórais Bhainistíochta agus Forbartha Feidhmíochta (CBFF). Tá mé cinnte go mbeidh an CBFF ina chúnamh mór i gcónaí dúinn i gcaitheamh na mblianta amach romhainn maidir leis an mbealach a cheapaimid ár gcuid spriocanna straitéiseacha a fheabhsú agus leis na spriocanna sin a chomhlíonadh. Nascann sé ról gach ball foirne leis na cuspóirí atá leagtha amach i Ráiteas Straitéise na Roinne, agus déanann sé foráil dá réir sin le haghaidh monatóireachta leanúnaí ar sholáthar na dtáirgeachtaí. Comhábhar buntábhachtach den Chóras Bainistíochta agus Forbartha Feidhmíochta is ea forbairt foirne indibhidiúil. Bíonn plean forbartha pearsanta ag gach ball foirne a nasctar le clár uaillmhianach oiliúna na Roinne. Glacaim leis go mbeidh gach duine a léann an gné-alt speisialta ar chur i bhfeidhm an CBFF sa Tuarascáil seo chomh tógtha is a bhí mé féin leis na héachtaí go dtí seo. Mar fhocal scoir, ba mhaith liom mo bhuíochas a ghabháil leis an Aire, Máire Ní Ruairc T.D. agus an Aire Stáit, Joe Jacob T.D., as a gcuid tacaíochta, spreagtha agus ceannasaíochta leanúnaí.

Ard Rúnaí

Tá an-áthas orm go bhfuil deis agam, arís eile, le Tuarascáil Bhliantúil na Roinne i gcomhair 2001 a nochtadh. Tá súil agam go mbeidh sí ina tuarascáil eolasach duit agus go dtugann sí léargas duit ar obair na Roinne Fiontar Poiblí. Measaim go bhfuil sé an-tábhachtach tuairisc a thabhairt ar ár gcuid gníomhaíochtaí go tráthúil agus mar sin, tá Tuarascáil na bliana seo difriúil le tuarascálacha blianta eile de thairbhe nach bhfuil Ráitis Airgeadais na Roinne inti. Ní bheidh siad seo ar fáil go dtí i bhfad níos déanaí sa bhliain toisc nach foláir iad a bheith iniúchta sula bhfoilsítear iad. Bímid in ann tuairisc a thabhairt ar ghníomhaíochtaí na Roinne agus ar ár ndul chun cinn de réir ár Ráitis Straitéise ar bhealach níos tráthúla má dhealaímid an Ráiteas Airgeadais leis an Tuarascáil Bhliantúil, agus í a eisiúint amach sa bhliain i gcáipéis ar leith. Eiseofar na Ráitis Airgeadais mar fhorlíonadh leis an Tuarascáil seo tar éis iad a bheith iniúchta. Baineadh cuid mhór amach sna hearnálacha uile as a bhfuil freagracht ar an Roinn. Is de thairbhe iarrachtaí fhoireann na Roinne cuid mhór é seo. Chuaigh an meathlú san eacnamaíocht dhomhanda agus ar tharla ar 11 Meán Fómhair 2001 sna Stáit Aontaithe i bhfeidhm ar go leor Rannóga den Roinn. Chuir sé seo brú breise ar an bhfoireann agus is go breá amach is amach mar a dífhreagair siad na dúshláin a tháinig rompu i gcaitheamh na bliana agus tá mé fíorbhuíoch as sin. Sampla maith a bhí sa chaoi mar a chuaigh na hathruithe domhanda dochreidte laistigh de na hearnálacha don fhoireann, den bhealach ar gá díeagraíochtaí a bheith ullmhaithe le glacadh go fonnmhar le hathruithe agus solúbthacht a léiriú, go háirithe agus iad ag déileáil le heachtraí móra gan choinne. Tá an-ádh orainn go bhfuil foireann an-mhaith laistigh den Roinn againn, a bhíonn díograiseach faoi chlár oibre ëan athraitheí san earnáil phoiblí agus a ghlacann leis an athrú mar

Brendan Tuohy Ard Rúnaí

Aibreán 2002

pg. 08

Department of Public Enterprise

Roinn Fiontar Poiblí

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Annual Report 2001

pg. 09

Aviation

pg. 10

Department of Public Enterprise

Roinn Fiontar Poiblí

Strategic Objective

To facilitate and encourage a wide range of reliable, regular and competitive commercial air services for Irish tourism, trade and industry.

Aer Lingus

Developiments affecting policy in relation to Aer Lingus in 2001 are summarised in the Shareholder section. The key priority since the impact of the events of September 11 is the full implementation of the Survival Plan in order to secure the future of the airline and provide a basis for future development.

Progress Achieved

Aviation Insurance

The year 2001 was overshadowed by the terrorist attacks in the USA on September 11. Some days after the attacks aviation insurers gave seven days notice of the withdrawal of third-party insurance cover in respect of war and terrorist risks from airlines, airports and aviation support firms. As the absence of adequate insurance would have meant the grounding of airline fleets around the world, most Governments stepped in at very short notice to fill the gap in insurance cover. Within the EU, this was endorsed by an informal ECOFIN Council on 22 September 2001 and subsequently by the Transport Council. The Minister provided letters of comfort, with Government approval, to the relevant firms, for the period from 24 September to 23 December 2001. During this period, work began on the drafting and enactment of the Air Navigation and Transport (Indemnities) Act 2001. The Act formally passed into law on 19 December 2001. Formal indemnities under the new Act were issued on 20 December 2001.

Essential Air Services Programme

In 2001, 15.27 million was paid out towards the cost of maintaining air services on routes that are not commercially viable, linking Donegal, Derry, Galway, Kerry, Knock and Sligo to Dublin. Public Service Obligation (PSO) contracts for the four existing routes, linking Donegal, Galway, Kerry, and Sligo to Dublin, were renewed in early 2001 and contracts for services from Knock and Derry were awarded at the same time. The number of rotations on the Kerry and Galway routes increased from two to three and from three to four daily return flights respectively. Following a tender process, Loganair secured the contract to operate the Dublin Derry PSO route and Aer Arann was awarded the other five routes. Each contract was for a three-year period. However, because of the fall off in traffic due to the foot and mouth crisis, Aer Arann requested the Department to terminate their contracts late in 2001. Services on the routes affected were maintained under a temporary contract with Aer Arann while the Department initiated arrangements to run a new EU tender process for a further three-year PSO contract starting in 2002.

State Aid for Airlines Affected by the Closure of US Airspace

The closures of all US civil airports for four days after September 11 had a direct financial impact on many European airlines. The EU Commission agreed that Member States could reimburse airlines under strict conditions. The Department was given the responsibility for administering this aid, including obtaining EU Commission approval, and monies were paid to Aer Lingus and Cityjet in accordance with the terms of the scheme.

ICAO / UNIDROIT Aviation Registry

(Note: ICAO is the International Civil Aviation Organisation and Unidroit is the International Institute for the Unification of Private Law) The Department worked successfully for the adoption, in November, of an International Convention and Protocol to create an international legal framework to facilitate asset-based financing of

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Annual Report 2001

pg. 11

aircraft, aircraft engines and helicopters. This convention is important for Ireland because the aviation related financial services covered by the Convention make up a significant element of Ireland's aviation business sector. The "Convention on International Interests in Mobile Equipment" and an associated "Protocol thereto on Matters specific to Aircraft Equipment" will require the establishment of an internet based international registry of financial interests in aircraft. The hosting of the registry by Ireland would be entirely appropriate having regard to our aviation and e-commerce sectors. The Department obtained Government approval to bid to be the country that hosts the international registry. The competition to select a host country is expected to begin late in 2002.

Strategic Objective

To ensure that the principal gateway airports of the State are in a position to provide the appropriate infrastructure to meet the current and prospective needs of airline, and other aviation companies at the lowest cost to those users consistent with Aer Rianta's commercial mandate; to assist in optimising the contribution of the country's network of regional airports to balanced regional development.

ICAO Council Seat and the ICAO General Assembly

During 2001, the Department, greatly assisted by the Department of Foreign Affairs, managed the campaign that led to the election of Ireland to the Council of the International Civil Aviation Organisation Council for the period 20012004. The 38 member Council is the formal decision making body for ICAO which has 187 member countries and is a UN affiliated body.

Progress Achieved

Airport Development

The three State airports have seen a dramatic growth in passenger traffic in recent years. Notwithstanding the downturn in the US economy, the foot and mouth crisis and the impact of September 11, traffic continued to grow in 2001 but at a more modest 3% compared to 2000. With the completion of the extension to the main terminal, Dublin Airport has the physical capacity to absorb continuing growth in passenger traffic for a number of years ahead. Terminal facilities at Cork are already seriously stretched, but Aer Rianta are proceeding rapidly with plans for a new terminal at Cork to cater for expected traffic growth going forward. Shannon Airport continues to have an ample surplus of terminal capacity.

pg. 12

Department of Public Enterprise

Roinn Fiontar Poiblí

Investment in Regional Airports

In 2001, 1.9 million was allocated in grants to the six regional airports (Donegal, Galway, Kerry, Knock, Sligo and Waterford) to assist with the necessary work involved in marketing and promoting the airports, and also with providing essential safety and security measures at each of the airports. The Department is responsible for implementing the Regional Airports Measure of the National Development Plan (NDP). 10.16million has been allocated for the BMW (Border, Midlands and West) region airports i.e. Donegal, Galway, Knock and Sligo and 3.81 million was allocated to the S&E region airports, Kerry and Waterford. A further 3.81 million has been allocated to the S&E (Southern and Eastern) region over the period 2004-2006. Proposals for projects to be assisted under the NDP were received from all the regional airports during 2001. The maximum aid rates available for the airports under the NDP are up to 90% for safety related projects and up to 75% for other projects. A small number of safety related projects were assisted during 2001. The assessment of other projects proposed by the regional airports is continuing.

Public Safety Zones at Airports

Consultant, Environmental Resources Management Ltd (ERM), were engaged to propose revised guidelines for the protection of people on the ground from aircraft accidents during landing or takeoff. This project is being undertaken jointly with the Department of the Environment and Local Government. When the guidelines have been finalised, they will be promulgated by the Minister for the Environment and Local Government for use by the Local Authorities who will be responsible for taking account of public safety issues when dealing with planning applications near airports. Work continued with the consultants on this matter, but was suspended in the last quarter as priority was given to the aviation insurance problems and other necessary responses to the events of September 11. Work on this project has now resumed and should be completed shortly.

Strategic Objective

Ensure an on-going strategic and operational role for the Irish Aviation Authority in the provision of Air Traffic Management services.

Aviation Regulation Act

The year 2001 saw the enactment of legislation to establish a Commission for Aviation Regulation (CAR) to provide independent economic regulation in the aviation sector. The principal function of the CAR is to set limits on the level of airport charges; the CAR made its first determination in that respect in August 2001. The Aviation Regulation Act, 2001 also provided for the transfer of the travel trade licensing, air carrier licensing, ground handling and slot allocation functions of the Department to the Office of the Commission for Aviation Regulation.

Progress Achieved

Air Traffic Management

The Department and the Irish Aviation Authority continued to play an active role in the formulation of policy in regard to air traffic management of European Airspace. During 2001, the European Commission put forward a package of proposals on air traffic management designed to create a Single European Sky by 31 December 2004. The Commission's Single European Sky initiative aims to solve the problem of ever-growing air traffic delays. The proposed measures are based on the November 2000 report by the High Level Group on the Single European Sky, which was chaired by Commissioner Loyola de Palacio.

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The Department continued to participate in EU discussions on Global Satellite Navigation Systems (GNSS) development in Europe to ensure that full benefit will be derived for Ireland from this multiapplicational project.

Strategic Objective

To ensure that the rights of air passengers are safeguarded in the context of continued growth at all levels of air transport.

Progress Achieved

EU Developments

The Department continued to represent Ireland at EU Council Working Groups dealing with Air Carrier Liability, Air Passenger Rights in the European Union, competence of cabin crew in civil aviation, and a range of technical and organisational matters relating to aviation.

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Inland Transport

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Strategic Objectives

To ensure the provision of a well functioning, integrated public transport system, which enhances competitiveness, sustains economic progress, promotes balanced regional development and contributes to social cohesion; To ensure the provision of a defined standard of public transport, at reasonable cost to the customer and the taxpayer; To ensure the timely and cost effective delivery of the accelerated investment in the infrastructure and facilities necessary to ensure improved public transport provision;

Public Transport Infrastructure Development

National Development Plan

During 2001, further progress was achieved in improving the public transport system in line with the objectives set out in the National Development Plan (NDP). Capital funding to Coras Iompair Éireann (CIÉ) for the development of mainline rail, suburban rail and bus services amounted to 217.9 million. State subvention to CIÉ for the provision of non-commercial socially necessary services increased from 189 million to 222 million. A further 163.5 million was allocated to CIÉ in respect of the Light Rail project. This was an unprecedented level of investment.

Bus Átha Cliath

Bus Átha Cliath ordered and took delivery of 56 replacement buses. All buses delivered under the National Development Plan are low floor and wheelchair accessible. They provide for increased reliability as well as an increase in frequency and capacity. A further five Quality Bus Corridors were introduced bringing the total number to nine. The Nitelink has proved to be an outstanding success and is now available throughout the week, rather than just at weekends. In 2001, it carried 1.3 million passengers.

Bus Éireann

Bus Éireann took delivery of 97 new buses of which 70 were replacement buses. Thirty-four of these buses are servicing the Greater Dublin area with 36 city buses for the provincial cities of Cork, Waterford, Limerick and Galway. The remainder are being utilised on rural services. The purchase of extra buses has led to a very substantial improvement in services increasing peak capacity by 50% on all main corridors into Dublin and regenerating public transport services in Cork, Limerick, Galway and Waterford with departures up by between 25% and 50%. Tralee bus station has been refurbished and work began on a major refurbishment programme for Bus Áras.

Iarnród Éireann

Building on the improvements to the suburban network already achieved in 2000, Iarnród Éireann took delivery of a further 28 new DART carriages during 2001. Capacity on the DART network will have increased by almost 50% when the last of these new carriages enters service in the first quarter of 2002. In preparation for the delivery of 80 new diesel rail cars, work commenced on a new depot at Drogheda. This facility, built to the highest international environmental standards, will service and maintain Iarnród Éireann's entire fleet of 144 rail cars.

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Work also commenced on the Heuston Station Project. When completed the station will have four additional platforms and a revised track and signalling layout. This will allow the station to handle additional trains more efficiently than before. The design and planning of the Kildare Route Project and the DART Upgrade Project commenced. The Kildare Project will separate express and commuter trains between Kildare and Heuston Station. This will allow faster journey times for express trains and more frequent operation of commuter trains. Meanwhile, the DART project will see hourly capacity increase from 11,800 passengers, at the moment, to 22,500 passengers when it is completed. The report `Iarnród Éireann ­ The Way Forward' was received by the Minister in July 2001. Since then the Minister has proceeded with the necessary legislation to increase the size of the Board of the company from six to nine members and to implement revised corporate governance arrangements as recommended in the report.

Transport (Railway Infrastructure) Act 2001

The Transport (Railway Infrastructure) Act 2001 was enacted on 23 December. The Act provides for: the establishment of an independent statutory state body, the Railway Procurement Agency; a single statutory railway order procedure for the approval of all railway infrastructure projects; the regulation of light rail services when running on street.

Railway Procurement Agency

The Minister formally established the Railway Procurement Agency in December, 2001. The Agency's main function is the procurement of light rail and metro systems through Public Private Partnership (PPP). In addition the Agency has taken over responsibility for the Luas project already under construction.

Dublin Metro Light Rail

Significant progress was made on the Dublin Light Rail (Luas) project during the year. Preparatory physical works on Lines A (Tallaght to the City Centre) and B (Sandyford to St. Stephen's Green) were advanced and in some cases, completed. The contract for the main construction work, involving track-laying, cabling and the construction of the Sandyford depot was signed and work commenced on both routes during the year. The first of the 40 trams for operation on both lines was delivered to Dublin in November and a further four arrived by the end of the year. A competition to select an operator for Luas commenced in December 2000. Evaluation of tenders took place in the Autumn and detailed negotiations with one company began in November with a view to selecting a preferred bidder in early 2001. A market consultation on the development of the Rail PPP Frameworks used the metro proposals as a case study. Useful feedback was received from over 30 correspondents. The Light Rail Project Office of CIÉ progressed work on the preparatory work for the metro and on potential alignments and ridership levels. This work is continuing under the Railway Procurement Agency.

Quality Customer Services Committee

A Quality Customer Services Committee was set up in February 2001 with representatives from CIÉ, the three operating companies and the Department. The committee aims to encourage the acceleration of improvements in the "soft issues" such as better information, equality related issues and other customer focused improvements in public transport. An Annual Report will be produced and presented to the Minister in early 2002.

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Mini CTC Inquiry

The Oireachtas Joint Committee on Public Enterprise and Transport established a sub-committee on the miniCTC signalling project, when the extent of the cost over-run in CIÉ was brought to its attention. This sub-committee was given the power to inquire into the circumstances surrounding the entering into, and performance of, the Iarnród Éireann mini-CTC and Knockcroghrey signalling projects and the Esat/CIÉ cabling and telecommunications project and related matters. This committee began its public inquiry on 10 September 2001. To comply with the first stage of the inquiry, the sub-committee requested a discovery of all documents in the Department's possession relating to the mini-CTC signalling project and ESAT legacy by 3 May 2001. The discovery process involved the creation of an index of documents held by the Department relevant to the issues to be examined. A number of Departmental officials were called to give evidence before the subcommittee. The Inquiry was suspended on two occasions due to Court challenges. The Inquiry was finally adjourned on 27 November 2001, pending the outcome of a separate court case in relation to the Abbeylara inquiry.

responding to the consultative document. The evaluation study was completed in July 2001. The Forum was still considering its response at the end of the year. As promised in the Government's September 2000 consultation paper, new guidelines were announced in December 2000 for the issue of licences to private bus operators for bus services in the Greater Dublin Area. The key objective of the revised guidelines is to increase the level of bus services in the Greater Dublin Area. A licensing round, based on the new guidelines, was concluded on 16 February 2001. All applicants were advised of the outcome of their applications at the end of May 2001 and 14 licence offers were accepted. Six licences had issued by the end of the year. The consultation document also set out proposals to implement new notification and approval procedures in respect of the introduction of new or modified services by Bus Átha Cliath and Bus Éireann. The new procedures were introduced in January 2001 and are designed to ensure that Bus Átha Cliath and Bus Éireann, which are exempted operators under the licensing provisions of the Road Transport Act 1932, do not announce or introduce services which may serve to pre-empt the introduction of licensed services by private operators. The procedures are also designed to ensure fair treatment for the exempted operators, enabling them to introduce new or revised services in an orderly and speedily fashion and providing a mechanism to enable them to comply with CIÉ's obligations under Section 25 of the Transport Act, 1958. Consultants, Steers, Davies and Gleave were engaged in September 2001 to carry out a review of the regulation of bus services outside the Greater Dublin Area and will report in the first half of 2002. Consultants, Price Waterhouse were also engaged to carry out a technical assessment of the financial and other implications of a proposal in the September 2000 Government consultation paper to establish the three CIÉ operating subsidiaries as independent companies. They are expected to report in the first half of 2002.

A New Institutional and Regulatory Framework for Public Transport

The Department published a consultative document, `A New Institutional and Regulatory Framework for Public Transport', in September 2000. The consultative document proposed a fundamental restructuring of CIÉ, increased participation by the private sector in the development and provision of public transport services and the establishment of an independent regulatory regime, which will underpin the expansion and improvement of the public transport system. The Public Transport Partnership Forum commissioned an independent comparative evaluation of the provision, regulation and integration of public transport in other countries to aid it in

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A further consultative document `New Institutional Arrangements for Land-Use and Transport in the Greater Dublin Area' was published jointly by the Department and the Department of the Environment and Local Government in March 2001. This document proposed the establishment of a new strategic Authority for the greater Dublin area, which would, among other functions, act as a public transport regulator. Fiftyseven responses were received during the consultation period, most of them supportive of the proposal to establish a new Authority. A cross-Departmental team, with representatives of the Departments of the Environment and Local Government, Finance and Public Enterprise was established to prepare legislative proposals for the establishment of the new Authority. The key public transport regulatory functions proposed for the Authority are: designing and procuring a high quality public transport system; promoting an integrated public transport network; encouraging increased public transport use; implementing a range of detailed market regulatory powers; allocating financial support for noncommercial services; regulating fares. High Court proceedings were taken against the State, the Minister for Public Enterprise and Bus Éireann by a private bus company based in Galway, Nestor Bus Ltd. The case was settled on 24 October 2001, while still at hearing. The case against Bus Éireann was dismissed and the case against the State was struck out. The pleadings in the Nestor case were very complex and raised a number of important legal issues. In particular, they raised issues about the application of the licensing provisions of the Road Transport Act, 1932. The Department is working to complete, as quickly as possible, the review of the legal issues arising from the case.

EU Legislative Proposals

The European Commission published two proposals for Regulations on (i) action by Member States concerning public service requirements and the award of public service contracts in passenger transport by rail, road and inland waterway and (ii) the granting of aid for the co-ordination of transport by rail, road and inland waterway. The first proposal defines a framework for "regulated competition" by requiring the conclusion of public service contracts limited to five years, where the State grants exclusive rights or financial compensation for the public service provided; and the latter proposal is intended to clarify the rules and the exceptions applicable to the granting of State aid in the inland transport sector. Discussions on the proposed Regulation concerning public service contracts commenced in the Council in 2001 under the Swedish Presidency. The European Council and Parliament adopted a package of measures in 2001 aimed at revitalising European rail transport. The Rail Package comprises three Directives, (i) on the development of the Community's railways, (ii) on the licensing of railway undertakings, and (iii) on the allocation of railway infrastructure capacity and the levying of charges for the use of the railway infrastructure and safety certification. A further Directive dealing with the interoperability of the trans-European conventional rail system was also adopted. Member States must implement these Directives by March 2003.

Transport of Dangerous Goods by Rail

The EC (Transport of Dangerous Goods by Rail) Regulations, 2001 (S.I. No. 500 of 2001) were signed by the Minister on 8 November. These Regulations give legal effect to Council Directive 96/49/EC, Commission Directive 96/87/EC, Commission Directive 1999/48/EC and Directive 2002/62/EC on the approximation of the laws of member States with regard to the transport of dangerous goods by rail.

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Railway Safety

The Iarnród Éireann Railway Safety Programme 1999-2003 was approved by Government in March 1999, involving a total safety related investment of 546.15 million over the five-year period. In the first three years of the Programme, approximately 368 million has been invested in the upgrading of railway infrastructure and improvements to safety management systems. This includes 148 million in 2001. Work completed in 2001 included the renewal of 74.4 miles of railway track, the closure of 120 level crossings, the erection of 47 miles of fencing, and improvement works on 60 railway bridges. `A Review of Railway Safety in Ireland ­ Second Implementation Review' was published in August 2001. This was the second audit of progress on railway safety since the commencement of the Railway Safety Programme. It concluded that Iarnród Éireann had made substantial progress in improving the safety of its' railway infrastructure since 1998 and that the pace of improvement had increased since the First Implementation Review was carried out in 1999/2000. `A Review of Railway Safety in Ireland ­ Implications of the Delay in the mini-CTC Project' was also published in August 2001. The Minister commissioned the review as she was concerned that the delay in the implementation of the miniCTC project could lead to further deterioration of railway lines affected by the project. The review concluded that the approach being adopted by Iarnród Éireann to the safety management of the affected routes was satisfactory. It recommended that a further sample audit be carried out on the mini-CTC lines in late 2001. This sample audit commenced in November 2001 and the audit report will be finalised in the Spring of 2002. Subsequent to the commencement of the audit, the Board of CIÉ, in December of 2001, approved a proposal to complete the mini-CTC project over the period 2002 to 2005. Following a public consultation process earlier in the year, the Government approved the publication of new railway safety legislation in December 2001. The

Railway Safety Bill, 2001 will introduce a new regulatory framework for railway safety. It will provide for the establishment of an independent Railway Safety Commission with wide-ranging powers of inspection, investigation and enforcement. It will also place specified duties on railway companies, railway workers and other persons not to pose a danger to the safety of railways. Railway companies will be required to implement formal safety management systems and to describe, in a document called the "Safety Case", how they manage safety in all of their activities. A new Railway Safety Advisory Council will also be established, with membership drawn from all the main areas of the railway sector, including persons representing the public interest and the interests of the mobility impaired. Final enactment of the Rail Safety Bill is expected in 2002. Draft Guidelines for Railway Safety Cases were published during 2001 to give guidance to railway companies, in advance of the enactment of the Railway Safety Bill, on suggested contents of `safety cases'. In 2001 the Department commissioned consultants Lloyds Register MHA to prepare draft guidelines for the design and construction of railway infrastructure and rolling stock, to assist railway companies who will be required to safety validate such works within the `safety case' framework that is at the core of the Railway Safety Bill. The guidelines are due to be completed by mid-2002.

Development of a Public Private Partnership (PPP) policy for Rail Projects

During the year, a framework policy for PPPs in the rail sector was completed. The policy provides guidelines to the newly established Railway Procurement Agency for the procurement of PPP projects, such as the Dublin Metro on the following areas: Project Appraisal and Development; Project Planning; Procurement and Contractual; Risk Management;

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Commercial and Financial Considerations; Performance Standards and Output Specifications; Contract Management.

Public Transport Partnership Forum

The Minister inaugurated the Public Transport Partnership Forum in June 2000, under the Programme for Prosperity and Fairness. Its purpose is to provide a mechanism for consultation on public transport matters and the development of ideas for the improvement of the sector. Membership is drawn from the Government, employers, trade unions, farmers and the community and voluntary sectors. Since its inauguration the Forum has invited key players and experts in Irish transport to present to it on matters of interest, and has, in its plenary sessions, studied and discussed draft legislation, transport policy documents and submissions. The Forum has provided an agreed view to Government on a variety of topics, and has issued five formal statements to date on a new institutional and regulatory framework for public transport; institutional arrangements for transport and land use in the Greater Dublin Area (two statements); the Transport (Railway Infrastructure) Bill and the proposed Railway Safety Bill. The Forum also established three specialist sub-committees to concentrate on specific aspects of public transport namely: a sub-committee to study rural transport; a sub-committee to oversee the work of independent consultants carrying out a comparative evaluation of the various approaches to the provision, regulation and integration of public transport services in major urban areas; a sub-committee to examine ways to improve public transport access to Dublin Airport in the short-term.

The rural transport sub-committee was closely involved in the development of the arrangements for the Rural Transport Initiative. The second sub-committee reported to the Forum in July 2001. The sub-committee on surface access to Dublin Airport provided the Forum with an interim report in July 2001 and its final report is due in mid-2002.

Integration

Implementation of integrated ticketing is now being pursued by the Department based on the Report of the Integrated Ticketing Committee, published in November 2001. It proposed that integrated ticketing be facilitated, inter alia, by way of an integrated fares structure using contactless smart card technology. Pending the establishment of the Railway Procurement Agency in December 2001, the Light Rail Project Office (LRPO) of CIÉ proceeded with work on delivering a national integrated ticketing scheme for initial deployment in the Greater Dublin Area. A project plan for implementation of this smart card system was agreed with the Light Rail Project Office in August 2001 and 3.7 million was allocated to this project for 2002. At the end of December 2001, the Dublin Transportation Office established a committee on Real Time Passenger Information System.

Land Use and Transportation Studies

The Department was represented on steering groups for land use and transportation studies in Cork, Limerick, Galway and Waterford. During the course of the year the Cork Area Strategic Plan (CASP) was finalised and approved by Cork City and County Councils. Central to the strategic thrust of the CASP is a proposal for the development of suburban rail services linking Blarney, Cork and Midleton. Iarnród Éireann will shortly be undertaking a detailed feasibility study into the potential for developing these new services.

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Public Transport Accessibility

Bus Átha Cliath had some 300 low-floor buses operating in Dublin city at the end of 2001. This represents about 30% of the fleet, and 19 bus routes now have fully accessible services. The position in Cork, Limerick, Galway and Waterford is that Bus Éireann has some 140 low-floor accessible buses on its urban services and the entire regular urban bus fleet in these cities is now lowfloor. In addition, Bus Éireann has 20 lowfloor wheelchair accessible buses on a number of rural routes and has introduced 6 low-floor double deck buses on the Ashbourne-Dublin commuter route. Iarnród Éireann is continuing to introduce new DART and Arrow rail cars that have audio/visual facilities, which provide for announcements of the upcoming rail station for the visually and aurally impaired. Other significant improvements for people with disabilities and mobility impaired people, include the provision of lifts, ramps, tactile flooring and induction loops at a number of bus and rail stations. During the year membership of the Public Transport Accessibility Committee was expanded to include representatives of older people and the Railway Procurement Agency. The CIÉ operating subsidiaries, the Irish Congress of Trade Unions and a number of organisations representing disabled and mobility impaired people are also represented on the Committee. Its remit is to advise the Minister on the accessibility aspects of proposed public transport investments and public transport issues generally.

and in December 2001, the Minister announced funding of 3.8 million for 2002. The Department took an active part in the work of the inter-departmental working group on rural transport, which was chaired by the Department of the Environment and Local Government. The report of the working group provides preliminary indications as to what rural public transport services might be needed to meet reasonable rural transport needs. A new interDepartmental Committee, chaired by the Department of Public Enterprise, is now, amongst other things, overseeing a nationwide survey of rural public transport needs. The remit of the committee is to prepare a submission to the Minister which will contain proposals for a rural public transport policy. It is being aided in its work by Fitzpatrick Associates.

Strategic Objective

To provide an adequate legislative, regulatory and developmental framework for the road haulage industry in a way which supports national economic development.

Progress Achieved

In February 2001 the Minister of State published a Programme of Action for the Road Haulage Industry. Building on the previous development strategy for the sector published in 1999, the Programme is designed to make an important contribution to the development of a vibrant road haulage sector that meets the highest professional and safety standards. It identifies a wide range of specific actions to be addressed by State agencies and the industry that will increase professionalism within the road haulage industry and strengthen enforcement of legislation governing the sector. To facilitate this partnership approach, a Steering Group chaired by the

Rural Transport

The Rural Transport Initiative (RTI) was launched on 2 July 2001 following a public consultation process earlier in the year. It aims to promote and support the development of innovative, communitybased pilot public transport projects in rural areas. Area Development Management (ADM) is administering the RTI on behalf of the Department. A call for proposals for funding under the initiative resulted in over 60 applications

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Department and comprising representatives from the industry and various State agencies was established. The foot and mouth disease restrictions, in the earlier part of the year, delayed the work of the Steering Group. However, significant progress was achieved following the easing of these restrictions. The level of premises visits and roadside enforcement checks was stepped up considerably. An Enforcement Forum met on a regular basis to monitor the effectiveness of the enforcement regime and to propose improvements in multiagency inspections. A Code of Practice was introduced with a view to preventing covert passengers being carried on road haulage vehicles. Funding of 254,000 was provided to the Irish Road Haulage Association to assist it in fulfilling its role in developing the industry. In October, Ireland signed up for membership of the Euro Contrôle Route (ECR) organisation. The purpose of the ECR is to facilitate increased cooperation between European agencies on road transport enforcement issues. This includes intelligence exchange, joint checkpoints, and the training and exchange of enforcement officers. As part of this process, Ireland hosted a successful Exchange Programme over five days involving road transport inspectors from a number of EU Member States.

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Energy

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Strategic Objective

Improving the nation's energy infrastructure so that it better meets consumer and industry needs.

existing natural gas network at Dublin and at Limerick, thereby creating a national transmission ring. The scheduled completion date is October 2002. During the year, the Department also received an application from BGE for the construction of the Mayo-Galway pipeline to bring gas from the Corrib field, off the coast of Co. Mayo, into the proposed ringmain at Galway.

Progress Achieved

Completion of New Peat Fired Electricity Station

Construction of the 120MW state-of-theart peat fired power station near Edenderry, Co. Offaly was completed in June 2001. The station had already come into commercial operation in December 2000 ­ more than six months ahead of schedule.

Gas Tariffs

In November 2001, the Minister of State issued Tariff Directives to Bord Gáis Éireann implementing a new policy of Irish Entry/Postalised Exit gas transmission tariffs. (This means having different tariffs for the different pipelines bringing gas to the onshore network in Ireland and a uniform tariff for onward transmission through the onshore network.) The decision followed a comprehensive review of the tariff regime, including widespread consultation, and consideration by Government of the efficient application of postalised tariffs for the onshore network.

Electricity Transmission and Distribution Networks

ESB and National Grid accelerated their programme of projects for network improvements during 2001 and significantly increased their capital expenditure. This increased level of expenditure is scheduled to continue up to 2005.

Sale of Whitegate Refinery and Whiddy Island Oil Terminal

On 16 July 2001, the businesses and commercial assets (Irish Refining plc and Bantry Terminals Ltd.) of the Irish National Petroleum Corporation (INPC) were sold for a headline consideration of $100 million ( 115 million) to Tosco Corporation, a major US refiner and marketer which subsequently merged with the oil giant, Phillips Petroleum Company. The disposal saw the end of the so-called Mandatory Offtake Regime (MR), an artificial and uncertain mechanism which was introduced in 1982 to provide essential support for the refinery as a stand alone facility in State ownership. Under the MR, oil companies supplying the Irish market were obliged to source a proportion of their total requirements from Whitegate at prices determined by the Minister. The terms of the transaction include a guarantee that the new owner will operate the refinery and the terminal on a fully commercial basis for at least 15 years. The new arrangements provide a

Gas Supply Developments

In February 2001, following an assessment of projected gas demand and a range of possible supply options, the Government approved in principle the construction of a second gas interconnector with Scotland, in order to ensure continuity of supply in Winter 2002/3. In December 2001, the Minister of State granted consent to Bord Gáis Éireann (BGE) to construct the interconnector, which is scheduled to be completed by October 2002.

Extension of the Natural Gas Network

In December 2001, the Minister of State granted consent for Bord Gáis Éireann to construct a Dublin-Galway-Limerick ringmain. This will connect into the

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sustainable basis for the future operation and development of the two facilities as part of a large and successful integrated oil business. This ensures that Ireland will retain the operational and strategic benefits of the refinery and the terminal at least cost to taxpayers and consumers.

Strategic Objective

Ensuring that the sectors contribute fully to the Government's objectives of promoting regional development and enhancing social inclusion.

Strategic Oil Reserves

Another INPC subsidiary, the National Oil Reserves Agency (NORA), which manages Ireland's strategic oil reserves, was not included in the sale to Tosco Corporation and will continue to operate in the public sector. Irish consumption of petrol and middle distillates combined grew by almost 7% in 2001, indicating further challenges for NORA in continuing to meet international (EU and International Energy Agency) requirements to hold an oil reserve equivalent to at least 90 days consumption/imports. While average stock levels during the year (113 days) were comfortably in excess of the minimum, this outturn was facilitated by fortuitous developments in relation to the ESB (Electricity Supply Board) and refinery stocks which are unlikely to be repeated. Consequently, the question of improving the Agency's intrinsic strategic stockholding capabilities in line with the targets in its current five-year plan was further examined in the Department during the year in the context of the INPC-Tosco transaction. It is envisaged that concrete proposals about NORA's future structure and financing will be submitted to the Government in 2002.

Progress Achieved

Extension of the Gas Network to the North West

In September 2001, the Government decided in principle to extend the gas transmission system to Sligo via Ballina from the proposed Mayo to Galway pipeline, and to Letterkenny from Derry. The decision recognised that these extensions would not be viable on the basis of anticipated gas demand and that considerable grant aid would be required. The Government has requested detailed costings for the projects before making a formal decision on grant aid. Also in September, the Government decided to make available a contribution of 12.7 million to the Northern Ireland Administration towards the development of the Northern Ireland Gas Network, which will include a Belfast to Derry pipeline and a South/North interconnector. This decision recognised that the development of the gas network in Northern Ireland would facilitate improved energy supplies to County Donegal and would play an important role in the development of an all-island energy market.

Public Service Obligation for Electricity

The Electricity Regulation Act, 1999, provides for a Public Service Obligation (PSO) in relation to, amongst other things, security of supply. A notification was sent in November 2000, to the EU Commission concerning a proposal to introduce a public service obligation in the general economic interest in respect of peat fired generating stations on security of supply grounds, and in respect of past Alternative Energy

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Requirement (AER) renewable projects on grounds of environmental protection. Following lengthy discussions, the EU Commission approved the PSO arrangements on 30 October 2001 and 15 January 2002 in respect of peat and renewable/sustainable generation respectively. It was deemed necessary to enact technical amendments to Section 39 of the Electricity Regulation Act, 1999 to ensure that the enabling power of the proposed PSO Order could comply with the EU Commission's requirements. These amendments were drafted in the latter part of 2001 for inclusion in the Sustainable Energy Bill. Meanwhile, work continued on the drafting of the PSO Order, reflecting developments arising from the EU Commission decision.

the second half of 2002. Furthermore, in October 2001, following the UK Government's decision to authorise the MOX plant, Ireland launched separate legal proceedings against the UK under the 1982 UN Convention on the Law of the Sea (UNCLOS) on the grounds that the UK, in authorising the MOX plant, had violated numerous provisions of that Convention. This substantive case under UNCLOS will be heard by a Tribunal in 2002. In November 2001, pending the hearing of the substantive case under UNCLOS, Ireland requested the International Tribunal for the Law of the Sea (ITLOS) to order a suspension of the UK's authorisation of the MOX plant. In the event, ITLOS did not agree to the implementation of the measure requested by Ireland. However, the Tribunal did decide that UNCLOS has jurisdiction in the case. The Tribunal also recognised that the UK has an obligation to prevent pollution of the marine environment which might result from the operation of the MOX plant.

Strategic Objective

Taking full account of the health and environmental aspects of the transport and energy sectors and the need for these sectors to make a full contribution to sustainable development.

Joint Convention on Safe Management of Spent Fuel and Radioactive Waste Management

In March 2001, Ireland ratified the International Atomic Energy Agency's Joint Convention on Safety of Spent Fuel Management and Safety of Radioactive Waste Management. Ireland, being the twenty-fifth Member State of the Agency to ratify the Convention, triggered the coming into force of the Convention. This Convention is the first international instrument to address the safety of management and storage of radioactive waste and spent nuclear fuel in countries with and without nuclear programmes.

Progress Achieved

Nuclear Safety

Sellafield

The Irish Government's aim is to bring about the closure of the British Nuclear Fuels Sellafield plant. In June 2001, Ireland initiated legal action against the UK in regard to the proposed establishment, at Sellafield, of a Mixed Oxide (MOX) fuel fabrication plant. The action was initiated under the OSPAR Convention for the Protection of the Marine Environment of the North-East Atlantic. Ireland's action under the OSPAR Convention relates to the withholding by the UK, on grounds of commercial confidentiality, of information essential to assessing the justification of the full commissioning of the proposed MOX plant. It is expected that the case will be heard by an Arbitration Tribunal in

Nuclear Emergency Planning

In the course of 2001, a team of consultants (ERM) was engaged by the Department to organise and carry out a test of the National Emergency Plan for Nuclear Accidents. The test involved a "table top" exercise which took place in July 2001 and a full-scale exercise in November 2001. The relevant Government Departments and Agencies

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participated in the exercise. The consultants report of the outcome of the test will be taken into consideration in the updating of the revised National Emergency Plan for Nuclear Accidents, which is due to be published in early 2002.

internal electricity market which was adopted in September 2001. The Directive requires Member States to introduce a programme to increase the consumption of electricity produced from renewable energy sources. In the case of Ireland, the target is 13.2% of total consumption by 2010. The Department submitted a notification to the EU Directorate General for Competition on state aids for the promotion of renewable energy technologies and progressed the notification at a number of meetings and briefings.

Radon

On September 30 2000, the Minister of State announced that the Government had approved, in principle, the introduction of a Radon Remediation Grant Scheme in respect of domestic dwellings. The purpose of the Scheme is to assist householders in undertaking radon remediation measures in their homes. Radon is a naturally occurring radioactive gas present in rocks and soils. As it is a gas it can permeate soil to enter buildings. Government approval for the Scheme was sought on the basis that long-term exposure to high levels of radon could be a contributory factor in increasing the risk of lung cancer. During 2001, work began on the preparation of the legislation required for the introduction of the Grant Scheme, which will be administered by the Radiological Protection Institute of Ireland. The Scheme will be introduced as soon as possible following the enactment of the legislation.

Sustainable Energy

During the year, the Department continued to work in a range of fora to promote energy efficiency throughout the Irish economy. The main focus continued to be working with and through the Irish Energy Centre to design and implement programmes and measures identified in the Economic and Social Infrastructure Operational Programme within the framework of the National Development Plan 2000 ­ 2006. Other initiatives in the energy efficiency area were processed through the Department's participation in the Inter-Departmental Implementation Group on the National Climate Change Strategy and European Union legislative proposals, including a draft Directive aimed at establishing a framework for considerably reducing energy consumption in the building sector.

Renewable Energy

In May 2001, the Minister of State announced the fifth competition (AER V) to support the building of an additional 255MW of renewable energy sourced electricity generating plant. July 2001 saw the establishment of a Steering Group to advise the Minister of State on a Grid Upgrade Development Programme. The Programme, funded through the Economic and Social Infrastructure Operational Programme, is designed to address grid capacity constraints on the electricity network in order to support additional renewable energy projects at diverse locations. The Department was involved in the discussions leading up to political agreement on Directive 2001/77/EC on the promotion of electricity produced from renewable energy sources in the

Energy Usage in Buildings

In July 2001, the Government decided that all Government Departments and State Bodies should be required to include in their Annual Reports to Government and the Oireachtas, an indication of the measures taken to reduce energy usage in the buildings under their control. Measures taken by the Department during the year included the following: An in-house guidelines document on the reporting requirement was finalised; An induction course presentation to promote the Government Decision was prepared;

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Irish Energy Centre

In relation to the Department's work with the Irish Energy Centre, the following were the highlights:

Energy Awareness Week

Energy Awareness Week is coordinated by the Irish Energy Centre on behalf of the Minister of State. In 2001, during the period of the promotion there was an increase of over 400% in sales of compact fluorescent lamps (CFLs), lagging jackets and energy efficient appliances, with CFL sales growing from an average 52,000 units to a remarkable 293,000 units. This will result in an annual reduction of CO2 emissions of almost 16,000 tonnes.

voluntary agreement programme in which the members commit themselves to regular audits of their energy consumption and to setting annual energy saving targets, together with publication of an annual statement of achievements for the year and targets for the forthcoming year. The fourth Annual Report was launched on 6 December 2001 and showed that the Scheme accounts for over a third of the energy use in the industrial sector with a total energy spend in 2000 of approximately 234 million.

fuel sources, extension of gas grid and financial incentives. This report "An Examination of the Future Potential of CHP in Ireland" - was presented to the Minister of State on 6 December 2001 and was opened for public consultation.

Public Sector Programme

In line with Green Paper policies, the Irish Energy Centre has introduced complementary schemes that will promote energy efficiency initiatives in public sector buildings. The Design Study Support Scheme, launched in June 2001, will provide financial support of 2.02 million to public sector bodies for the purposes of procuring external professional expertise to examine and report on the technical and economic feasibility of energy efficient design and technology solutions in new building and refurbishment projects. The "Model Solutions" Investment Support Scheme, launched in August 2001, will provide investment assistance of 9.08 million to selected projects undertaken by public sector organisations whereby they propose additional investment in building energy conservation technologies or measures in new or existing buildings.

Note: The Sustainable Energy Bill, which is intended to establish the Irish Energy Centre as an independent statutory body under the aegis of the Minister for Public Enterprise, made substantial progress in its passage through the Houses of the Oireachtas in the course of the year.

The House of Tomorrow Programme

In September 2001, a 21.1 million research scheme in advanced domestic energy efficiency developments, entitled the `House of Tomorrow' programme, was launched. This programme will offer support for research, development and demonstration projects aimed at generating and applying technologies, products, systems, practices and information leading to more sustainable energy performance in Irish housing.

The National Boiler Awards

The National Boiler Awards Competition, which promotes energy efficient boiler technology, was first launched in 1996. The total energy spend captured by the competition in 2001, amounted to 411 million, with savings achieved of over 7.36 million. A strong environmental impact was also realised by the competition, with a reduction in carbon dioxide emissions of over 139,000 tonnes accomplished during the year.

Report on CHP in Ireland

In the Green Paper on Sustainable Energy, the Irish Energy Centre was given the task of producing a report, for both the Minister of State and the Commission for Electricity Regulation, on the future potential of Combined Heat and Power (CHP) in Ireland in the light of market liberalisation, technology advances,

The Annual Self-Audit and Statement of Energy Accounts Scheme

The Annual Self-Audit and Statement of Energy Accounts Scheme is a

In late 2001, the Office of Public Works (OPW) commenced the installation of Business Energy Management Systems (BEMS) in the Department's Kildare Street building and in Frederick Buildings. These systems will enable the Department, together with the OPW, to centrally monitor energy consumption in a number of buildings occupied by this and other Departments, and to rapidly identify and eliminate wastage.

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Communications

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The overall goals of Communications Policy are: s To provide a major contribution to sustained macro-economic growth and competitiveness by: rolling out state-of-the-art infrastructures; by providing a legislative and regulatory environment which incubates the nascent opportunities of the information society, and by developing a leading edge research and development facility. s To create an innovative legislative framework that provides for light handed regulation of the communications and postal sectors and a flexible legal environment where business and public services can be transacted with confidence.

out projects was held. Specific funding has been targeted for local authority and public body interventions, giving a local planning dimension to the delivery of this infrastructure. Thirty-one projects were received before the closing date of 19 October 2001. The projects were subsequently independently evaluated. A feasibility study to consider how certain infrastructural gaps in the country may be addressed was undertaken on behalf of the Department in 2001. Following on from this study, expressions of interest were sought from the private sector on the potential to build and manage an `Atlantic Broadband Corridor'.

International Connectivity

The deal in 1999 concluded with Global Crossing Inc brought high bandwidth infrastructure to Ireland and connected Ireland seamlessly to 36 European cities and to the United States. This bandwidth was secured at extremely competitive rates by international standards and has resulted in increased competition on international connectivity into and out of Ireland. Ireland is now one of the most competitively priced countries in the OECD for international leased lines. Contracts were signed with a number of companies who bid for rights of use in capacity on the network. This deal has been extended and improved in 2001 to offer a greater range of bandwidth services to 40 European cities and to also add connectivity between Ireland and major U.S. and Asian cities.

Strategic Objective

To place Ireland in the top quartile of OECD economies in terms of key internet and telecommunications benchmarks.

Progress Achieved

Investment in Communications Infrastructure

Under the National Development Plan, 2000-2006, 200 million was allocated to the development of broadband infrastructure. A commitment was given that two-thirds of this budget will be spent in the Border, Midlands, and West Region. One-third will be spent in the Southern and Eastern Region. Following on from submissions received under a First Call for Proposals, nine contracts were signed at the start of 2001. These projects will be completed over two years, and will entail overall investment of 160 million in broadband infrastructure leveraged from grant assistance of approximately 55 million. In August 2001, a Second Call for Proposals for additional broadband roll-

Strategic Objective

To promote increased Information Society inclusion at both the regional and communitybased levels.

Progress Achieved

CAIT Initiative (Community Application of Information Technology)

The objective of the CAIT Initiative is to ensure that Ireland develops as a fully inclusive information society. Over 5 million was made available under the

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Initiative for community and voluntary sector projects for the period July 2001 until December 2002. Seventy-one demonstration projects were recommended for funding, and subsequently commenced throughout 2001. The projects impact upon every county in Ireland, and help a wide range of social groups who are unfamiliar with, and who do not use, the new Information and Communications technologies in their daily lives to engage with these technologies in a beneficial way. Evaluation of the impact of the projects commenced in Autumn of 2001.

broadband infrastructure in the Digital Hub. In July 2001, the `General Scheme of the Digital Hub Development Agency' Bill received Government approval. The Bill will establish Digital Media Development Ltd., (DMDL), the body established to oversee the development of the digital hub, on a statutory footing as a State agency. It sets out the role and functions of the Agency in relation to the development of the Digital Hub. It also provides the necessary corporate and regulatory structures for a State body. Government approved the publication of the Bill on 18 December 2001. In December 2001, DMDL launched its development strategy for the Digital Hub. The strategy focuses mainly on enterprise development and also includes initiatives for education and training aimed at the local community. Payment of 10.16 million was made to MediaLabEurope in 2001 as part of an overall funding package of 35.55 million in line with the establishment agreement between the Government and the Massachusetts Institute of Technology. A total of 2.54 million was also allocated, through the Higher Education Authority, for 27 collaborative research projects between MLE and Irish Universities. Eleven projects received funding in respect of 2000 and a further sixteen for 2001. Of these, five projects were funded in both years.

Strategic Objective

To support the creation of a world class research entity at MediaLabEurope and a vibrant media content industry.

Progress Achieved

The Digital Hub and MediaLabEurope

The Digital Hub is a development project to cluster Irish and international new media companies, together with research, development, and educational initiatives in the Thomas Street area of Dublin. Its flagship project, MediaLabEurope (MLE), is a third level research & development institute established under a partnership between the Irish Government and the world famous Massachusetts Institute of Technology. These initiatives are part of the drive to make Ireland an international centre for high-tech research and cutting edge digital industry. The Digital Hub and MLE projects were initiated under the aegis of the Department of the Taoiseach. On 22 May 2001, responsibility for the projects was transferred to the Department of Public Enterprise. As part of its strategy to develop the Digital Hub, the Government approved funding of 73.64 million for property purchase to provide space for digital enterprises and related facilities. Of this, 40.9 million was spent in 2001. Payment of 2.29 million was made to Dublin City Council for the provision of

Objective

To create an innovative legislative framework that provides for light handed regulation of the communications and postal sectors and a flexible legal environment where business and public services can be transacted with confidence

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Progress Achieved

European Regulatory Package

During 2001, the Department actively participated in discussions at EU Council working groups on a package of legislative proposals designed to bring current Community legislation on electronic communications into line with the far-reaching changes, including technologic convergence, taking place in the telecommunications, media and information technologies sectors. The legislative package consists of a Framework Directive, four other Directives on Authorisations; Access and Interconnection; Universal Service and User Rights and Data Protection and a Decision on Radio Spectrum. The Department has commenced the process of transposing the regulatory package into Irish law and it is proposed to have the project completed during 2002.

The Bill progressed through the legislative process in 2001 and it is proposed to have it fully enacted in 2002

Directive 1999/5/EC (The R&TTE Directive)

Following settlement by the Department of appropriate arrangements for implementation, the Minister signed the European Communities (Radio Equipment and Telecommunications Terminal Equipment) Regulations, 2001, S.I. No. 240 of 2001, transposing Directive 1999/5/EC into Irish law. The aim of the Directive is to establish a regulatory framework to harmonise the placing on the market, free movement and putting into service in the community of radio equipment and telecommunications terminal equipment.

Intelsat/Eutelsat

Throughout 2001 the Department progressed the drafting of Memoranda for Government requesting the ratification of Ireland's accession to the amended European Telecommunications Satellite Organisation (EUTELSAT) Convention, and the International Telecommunications Satellite Organisation, (INTELSAT) Agreement, allowing for their respective privatisations. The Memoranda were subsequently sent to the Department of Foreign Affairs' legal advisors. It is hoped to ratify the Memoranda in 2002.

Communications (Regulation) Bill

Following Government approval, the general scheme of the Communications Regulation Bill was published in March 2001. The Bill includes provision for: The replacement of the Director of Telecommunications Regulation with a Commission for Communications Regulation, making appropriate arrangements for the transfer of staff and functions of the Director to the Commission. Increases of certain penalties for breaches of regulatory rules. The reform of the legislative framework governing opening of public roads by telecommunications operators. The implementation of policy proposals set out in the "Governance and Accountability in the Regulatory Process" paper, including the enhancement of the transparency and accountability of the new Commission to the Oireachtas and the public. The inclusion of the Regulation of the European Parliament and Council mandating local loop unbundling from January 2001 within the enforcement powers of the Commission

Appointment of a Technology and E-Business Attache, Singapore

Mr Matthew Collins was appointed to the position of Technology and E-Business Attaché, based in the Irish Embassy, Singapore. The role of the Attaché will be to focus on the provision of strategic analysis and networking on developments in the communications, broadband multimedia, and electronic business sectors.

HEAnet, (The National Research Network Provider)

HEAnet Ltd. is the provider of Ireland's education and research network, and delivers internet connectivity and related services to universities, institutes of technology, to the Higher Education

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Authority, and to a number of other research organisations in Ireland. The HEAnet network also provides onward connectivity to Northern Ireland, Europe, and the US to facilitate networked collaboration between research establishments. In 2001, HEAnet completed a jointly funded project between the Department and the Higher Education Authority to establish an education and research national backbone with distributed points of presence in Dublin, Galway, Cork, and Limerick, offering local access outside of Dublin and particularly in peripheral areas. This enables connections from each point of presence to third level institutions at bandwidths of up to 155 Megabits per second. HEAnet also completed the Next Generation Internet project in 2001 with: 2.67 million in direct funding from the Information Society Fund; Seven units of connectivity from the Global Crossing Project and; Ongoing funding from the Department of Education and Science through the Higher Education Authority This project sought to raise the level of connectivity for students and researchers to the US, Europe, and Northern Ireland. By the end of 2001 international bandwidth to the United States and Canada rose to 620 Megabits per second, to Europe to 465 Megabits per second and to Northern Ireland to 155 Megabits per second.

in December 2001.

Advisory Committee on Infocoms

The Minister established the Advisory Committee on Information and Communications Technology in June 2001. This committee is the successor to the Advisory Committee on Telecommunications, which reported in 1998, and is comprised of international information and communications industry leaders, representing diverse areas of expertise and experience, and senior Irish officials. It is charged with the task of advising the Minister on a strategy to reposition Ireland as a key global centre in advanced information and communications technology (ICT).

Ducting Recommendations

In order to facilitate the development of the civil infrastructure necessary for telecommunications development, the Department published a set of standardised recommendations for the laying of telecommunications ducts, in consultation with the Department of the Environment and Local Government, the National Roads Authority and industry. The document provides a summary overview of the current cabling practices for telecommunications and sets out recommendations for the provision of ducts and cable infrastructure for developments and improvement schemes. These include national, primary, and secondary roads, commercial schemes such as business parks and office centres, and residential schemes.

Review of the Wireless Telegraphy Act.

Radiocommunications play an important role in the telecommunications, broadcasting, transport, security, emergency services and utilities, scientific and the leisure sectors. The use of radiocommunications is governed by the Wireless Telegraphy Act, which dates from 1926. During the year an in-depth review of the current legislation relating to wireless telegraphy was initiated to identify legislative changes that may be required to reflect the changes in the environment in which radiocommunications now has to operate. The initial review report of the Wireless Telegraphy Act was completed

Postal Communications

The overall policy goals in the Postal Sector are: To ensure Irish Industry and domestic customers enjoy competitively priced, high quality postal services on a par with the highest quality standards elsewhere in the EU; To maintain the nationwide postal service and network, with uniform tariffs applying throughout the state, and;

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To develop the Irish postal sector in such a say that it will underpin the key economic objective of Ireland becoming an e-commerce hub.

Postal (Miscellaneous Provisions) Bill

In May 2001, the Postal (Miscellaneous Provisions) Bill was published. The purpose of the Bill is to provide for the issue, sale and disposal of shares in An Post as part of an Employee Share Option Programme (ESOP) in the Company and in the event of An Post entering into an equity based alliance with another postal operator. The Bill also provides for a reduction in the number of worker Directors on the Board of An Post in order to allow for the appointment of a Director representing the ESOP or alliance partners. Enactment of the Bill is expected to take place in the latter part of 2002.

commitment to the retention of a rural post office network, the report reviewed the financial and business environment of the Sub Post Office Network within the context of the Post Offices Business Division of An Post, and examined the options and made recommendations on the sustainable development of the rural post office network in the context of the company fulfilling its obligation to provide nationwide service. Following the recommendations in the Flynn Report, the Inter-Departmental Working Group ("IDG") was established by the Minister to determine a basis for the sustainable operation of the Post Office Network. The IDG report sets out the findings and recommendations of the Group, including an assessment of the current financial and trading position of the network, and consideration of the restructuring options available to the network. Both these reports concluded that the network was facing serious financial challenges and that urgent remedial action was necessary. The latter report forecast accumulated losses for the Post Offices Division of An Post of 102 million by 2004. In July 2001, on consideration of the future of the Post Office Network the Government approved an increase in the share capital of An Post of 12.7 million subject to clearance by the EU Commission, and also approved the introduction of postal agency arrangements by An Post. The Minister also established a Partnership Forum to facilitate the negotiations on the restructuring of the Post Office Network. An Post was also successful in winning contracts with the ESB for counter bill pay facilities from 1 March 2002, and with Allied Irish Banks for transactions through the Post Office Network by the bank's customers from 1 July 2002.

Deregulation of the Postal Market

In October 2001, political agreement was reached at the Telecommunications Council to amend Directive 97/67 EC for the Development of Common Rules for the Postal Market. The purpose of the Directive is to provide for the further liberalising of the postal sector by reducing the maximum parameters of the area reserved for national postal operators from 350g to 100g in 2003 and 50g in 2006, with corresponding price limits of three and two and a half times the basic tariff. The draft Directive has been submitted to the European Parliament for a second reading.

Postal Network Reform

Two reports on the Post Office Network were published in 2001. The Flynn Report and the Report of the Post Office Working Group (Inter-Departmental Group Report) The Flynn Report, on request by the Minister in 1999, was produced by Mr. Phil Flynn, whose role was to act as an independent chairperson to progress discussions between An Post ("the Company") and the Irish Postmaster's Union ("the Union") on the Sub Post Office Network. Given the Government's

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North/South Co-operation

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Strategic Objective

Capture the opportunities opened up by the peace process for greater competitiveness and efficiency through North/South economic integration and cooperation.

A high level Working Group (the Ballymascanlon Group), at its first meeting in December 2001, developed a detailed action agenda identifying what specifically needs to be done to establish an all-island energy market and what form that market might take. The Ballymascanlon Group is comprised of senior officials from the two Departments, industry regulators, system operators and experts in sustainable energy.

Energy Infrastructure Developments

Progress Achieved

The Department continued to service the North/South Ministerial Council (NSMC) on issues within its remit. Close cooperation was maintained with other Government Departments, North and South, and with the Council's Joint Secretariat during the year.

Gas

The Government decided, in 2001, to make available a contribution of 12.7 million to the Northern Ireland Administration toward the development of the Northern Ireland Gas Network, which will include an East-West pipeline and a South-North gas interconnector. This decision recognised that the development of the gas network in Northern Ireland would facilitate improved energy supplies to County Donegal and would play an important role in the development of an all-island energy market.

Transport Sector

The North/South Ministerial Council (NSMC) - Transport Sector did not meet during 2001 due to non-participation in North/South Institutions by the relevant Northern Ireland Minister. Efforts to address this situation in accordance with the Good Friday Agreement continued during 2001. The position was considered by the NSMC in its Institutional Format in December 2001.

Electricity

In December 1999, the Minister and the Minister for Enterprise, Trade and Investment for Northern Ireland agreed to upgrade the main cross border electricity interconnector from around 275 MW to 400 MW. The project was completed in December 2001. This development, coupled with the recently-completed 500 MW interconnector between Northern Ireland and Scotland and the auctioning during 2000 of 30MW export capacity on the cross border interconnector to new suppliers, will help to encourage an allisland market.

Energy Sector

While the energy sector is currently outside the formal work programme of the North/South Ministerial Council, discussions at senior official level between the two Administrations on the promotion of an all-Ireland energy market continued during 2001. The Minister and the Minister for Enterprise, Trade and Investment for Northern Ireland jointly commissioned a study to examine options for an all-island energy market in January. The consultants, IPA Energy Consulting, presented their preliminary findings at a public consultation seminar in Belfast on 6-7 June 2001. The consultants' reports were published on the two Departments' websites and on the consultants' website.

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Departmental Issues

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Quality Customer Service(QCS)

The Department's latest Customer Service Action Plan 200I-2004 was published in April 2001. The New Plan builds on our first Plan (1997) and aims to further embed the culture of Quality Customer Service (QCS) within the organisation. It outlines a number of new commitments in QCS. These relate to e-Government, equality and diversity, and the internal customer. Additional staff resources were devoted to the customer service function in 2001 to help service these extra commitments. Overall our motto is a simple one "Good Customer Service is treating people the way you would like to be treated yourself". Our goal is to build awareness amongst our staff of this objective and to instil in them a desire to meet this standard. To build awareness a staff information pack was launched in October 2001. This pack was distributed to all staff and was part of an overall rebranding of QCS within the Department and contained the QCS Action Plan as well as a customer standards leaflet and a new post-paid customer comment card. The new comment card was designed to make it easier to receive feedback from all our customers. This will better allow us to monitor our progress over the lifetime of our new Plan.

to further embed Partnership in the Department; to improve and develop IT and eGovernment services within the Department. The Division was actively involved in the SMI evaluation process undertaken by PA Consulting in December 2001.

Public Service Management Act (PSMA) 1997

Pursuant to section 5 (1) of the PSMA, a Statement of Strategy for the period 2001 ­ 2004 was agreed. However, before it was published, it was clear that the events of September 11 would have a significant impact on policies in the aviation sector, among others. In the circumstances, the document did not go to print but was published on the Department's website. A revised strategy will be developed within six months of a new Government being formed. The Department delivered on the obligations imposed by the PSMA in relation to assignment of responsibilities to Principal Officers in 2000. Continuing supports to managers by way of training and development initiatives were provided during the year to ensure that managers have the competencies and skills necessary to carry out these responsibilities particularly in the area of staff development and performance management.

Strategic Change Division

A Strategic Change Division was established in September 2001, incorporating the IT and Customer Service functions. The objective of the Division is to ensure the continued implementation of the modernisation programme by providing leadership and support for the Department's programme for change and reform as set out in the various components of the Strategic Management Initiative (SMI). The Division's strategic objectives are as follows: to focus the Department's efforts to meet agreed Key Performance Indicators under SMI; to monitor, control and evaluate the individual programmes, under the SMI, being carried out in the Department; to establish customer service and internal communications functions in line with the recommendations of the Partnership sub-groups;

Business Planning Process

Annual Business Plans were prepared in all Divisions in the Department early in the year and progress on the plans was reviewed on a quarterly basis. Divisional business plans were a vital ingredient this year in the successful implementation of the first stage of the Performance Management and Development System (PMDS). Individual role profiles setting key work objectives and development programmes for staff must be aligned with targets set in business plans in order to ensure the alignment of the goals of the organisation with those of the individual. Business Planning within the Department is an inclusive process with input from all managers and staff, together with the Partnership Committee and the Principal Officer Network.

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Partnership

The Partnership Committee remains active in the Department with an increased network of participants in various subgroups and a 16 member central Committee. The Geological Survey of Ireland (GSI) and Met Éireann have their own Partnership Committees which report back regularly to the main Committee. In February 2001, the Committee engaged in a two-day training workshop on group dynamics and to examine their work programme for the year. The Partnership Committee engaged in two reviews during the year. The first of these review's was by PA Consulting. The Committee met PA Consulting to assist them in this task as part of their Civil Service-wide SMI evaluation project. The agreement which set up the Partnership structures in the Civil Service provided for a formal review of the process at the end of 1999. The purpose of the review was to determine, on the basis of experience of the process to date, the best structures for long-term success. This process, which was postponed due to PPF negotiations, took place in 2001. The Department was chosen as one of the nine Departments where an in-depth review was carried out by JJ O'Dwyer & Associates. Partnership sub-groups were active in the following areas during 200: Quality Customer Service Equality Health & Safety Key Performance Indicators Statement of Strategy Core Values Internal Communications The Equality Sub-group completed its remit in 2001 with the completion of an equality audit in the Department. Inside Track, the staff magazine initiated by the Partnership Committee in 2000 is now well established producing four issues in 2001.

The Department's FOI Section 15/16 Manual contains details on the Department's structure and organisation, functions, powers and duties and on the services we provide. The manual also gives details of the rules, procedures, practices, guidelines and interpretations used in relation to enactments and schemes administered by the Department together with contact details of individuals working on specific issues. The Manual was updated during 2001 and will be updated on a continuous basis in the future. It can be found on our website. In order to ensure continued and improved access to information, over and above the requirement of the FOI Act itself, the Department has committed to providing an increased volume of information on our website.

Prompt Payment of Accounts Act, 1997

The Department has complied with the provisions of the Act during the year ended 31 December 2001. In accordance with the Act, payments of 16,941 were incurred in respect of late payments of accounts.

Corporate Governance

The State Sponsored Bodies under the aegis of the Department operating in the Transport, Energy and Communications sectors face increasing competition in the delivery of quality and cost-effective services. The overall objective of the Department in the area of Corporate Governance is to drive an agenda to ensure excellent standards of corporate behaviour in the commercial State Bodies. This is being achieved by ensuring that the State Bodies adhere to the standards of corporate behaviour set by the Department of Finance in the "Code of Practice for the Governance of State Bodies".

Information Technology

The primary function of the Information Technology (IT) Unit is to support the change process. By properly deploying information technology we will significantly increase our efficiency and effectiveness. Projects completed during the year included: the electronic implementation of a teleworking infrastructure;

Freedom of Information

The Department continues its commitment to operating within the requirements of the Freedom of Information (FOI) Act. The Department received 196 FOI requests in 2001.

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modernisation of the salary system; conversion of all systems to the Euro; a significant training programme to enhance IT skills in line divisions. The Department intends to push on in 2001 with a number of projects which will move the Department significantly closer towards our desired objective of the full electronic conduct of day-to-day business. These include a major redevelopment of the Department's internet presence and the implementation of a fully electronic processing payment of staff travel and subsistence claims.

process. Please see our special feature on the Performance Management and Development System on page 43. In total 1,784,123 was spent on staff training and development in the year 2001. This figure represents 6.6% of payroll expenditure.

Education Refunds

The Department encourages staff to pursue third level qualifications in their own time and will undertake to refund up to 100% of certain third level courses. A total of 85,645 was allocated in respect of third-level fees incurred by 41 staff members in 2001. During 2001, staff were awarded qualifications as follows: 2 Post Graduate Degrees; 2 Bachelor Degrees; 1 Post Graduate Diploma; 11 Diplomas; 7 Certificates.

Staffing

There was an improvement in the timeliness of recruitment processes in 2001 that resulted in new staff being available earlier than before. However, the level of staff turnover remained at unusually high levels. On average, the number and duration of staff vacancies were marginally reduced and accordingly the maintenance of staffing levels remained problematic. On the equality side the Department has targets in regard to the gender breakdown of key staff grades. The Department is also promoting family friendly policies. Information on both these policies is set out below. Gender Breakdown of Department staff

Social Club

During 2001 the Department's staff Social Club moved from being a small body of people organising periodic ad-hoc events, into a formal departmental organisation, whose members include staff of all ages and grades. The club was formally launched in February 2001 with the Assistant Secretary for Corporate Services as President. The Club is run by a dedicated committee from across the Department and is funded mainly from staff contributions (deducted directly from salary) with a small contribution from the Department itself. At the start of the year the initial hope was to have 100 members by year end. However, by the end of the year more than 160 staff had joined. The high level of interest and participation is an endorsement of the range of events and activities organised over the last year. These included the following: table quizzes; go-karting; greyhound racing; pitch and putt; pool competitions; clay pigeon shooting; adventure weekends and barbecues; Department sports day; Department Christmas parties for staff and kids; regular raffles and prize draws.

Ratio expressed Male: Female

Grade Current ratio Target by End 2004 Target by End 2007 HEO 52:48 50:50 50:50 AP 64:36 59:41 55:45 PO 83:17 81:19 71:29

Take-up of family friendly policies from April 2001-2002

No. of staff

Job sharing/ Work sharing Term Time Parental Leave

51 6 20

Training and Development

The focus in 2001, of the Organisation and Development Unit was the implementation of the Performance Management and Development System (PMDS) and the provision of individual training requirements, selected by staff members and their managers under the PMDS

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PMDS in Public Enterprise

Special Feature

Some of the Department's PMDS training and support staff.

Staff at a PMDS training course.

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Roinn Fiontar Poiblí

Background

The foundations of achieving better performance in the Civil Service were laid down in Delivering Better Government (published in 1996) and Partnership 2000. The Programme for Prosperity and Fairness also identifies effective management of performance at all levels as one of its key objectives. In line with the ongoing modernisation programme in the Civil Service under the SMI, the Civil Service, in conjunction with the staff associations, developed a model performance management system for the Civil Service entitled `Performance Management and Development System' or PMDS for short. The Taoiseach officially launched PMDS on 11 May 2000. The introduction and ongoing implementation of this process is probably the biggest change in the way we carry out our work since the Civil Service was founded.

The PMDS process will be implemented within a culture of partnership and will be open and transparent. The process is divided into three Phases: Phase 1 ­ Performance Planning Phase 2 ­ Ongoing Management of Performance Phase 3 ­ Annual Performance and Development Review

Rollout of PMDS within Public Enterprise

The first step in the introduction of PMDS in the Department was the establishment of a Project Team under the Partnership process. Its main function is to ensure the smooth introduction and operation of the new system and to evaluate and monitor the effectiveness of the process. The requirement for all staff to be trained in the process, prior to its introduction, presented the Department with it's biggest training challenge to date. The task involved developing and delivering five days training, to all staff, during the first three phase cycle of the process. In order to deliver this ambitious training programme the Department trained seven of its staff to become internal facilitators. The bulk of the PMDS training was completed during 2001. Phases 1 and 2 were completed during the year and Phase 3 commenced in December, and is expected to be completed by April 2002. The Human Resource Development Unit developed a refresher course on CDROM for Phases 1 and 2. These were distributed to all staff during 2001. The CD-ROMs were designed to complement the formal training being delivered and allow staff to revisit, at their desktops, the steps involved in Phases 1 and 2 of the process. A further CD-ROM will be distributed when Phase 3 is completed in 2002. Monitoring and evaluation of how well the system is bedding in is ongoing. The signs so far are good as over 86% of staff have completed their Role Profile Form.

How PMDS Works

The ultimate aim of the PMDS process is to achieve the Department's strategic goals in a more efficient manner while motivating and developing staff within the organisation at the same time. A challenging task! This is achieved by identifying everybody's individual role within the Department and within that role setting objectives, which are aligned to the strategic goals of the Department. Progress against these objectives is monitored during the year and a formal review is carried out on an annual basis. Flexibility is built into the system to allow for realignment of objectives where necessary. The other key pillar of the process is that PMDS will take a positive and proactive approach to staff development. When agreeing their role, both the staff member and their manager will also consider the necessary competencies/skills required to perform the role. If there are any shortcomings in this regard then measures, such as training and coaching will be identified to address these.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Annual Report 2001

pg. 45

Shareholder Issues

pg. 46

Department of Public Enterprise

Roinn Fiontar Poiblí

Strategic Objective

To make state bodies under the Department's remit more efficient and competitive.

On 23 October 2001, the Government decided that, provided the Survival Plan was rapidly agreed and implemented in all its essential aspects, they would facilitate investment in Aer Lingus by both private sector interests and by the staff of the airline, in order to secure the future cash needs and development of the company. Considerable progress was made on the parameters of an agreement for increasing the staff shareholding in the company and talks on the specific terms of an Employee Share Ownership Programme (ESOP) framework are continuing. In relation to private sector investment, preparatory arrangements for the process have been agreed between the Department and Aer Lingus. However, arrangements to give effect to this decision will not be activated pending resolution of key outstanding industrial relations issues.

Progress Achieved

Aviation Sector

Aer Rianta

In February 2001, Aer Rianta raised 250 million in the Eurobond issue which it used to restructure its debt profile and to assist with its ongoing capital expenditure programme at the State airports. These initiatives represent no more than a temporary solution to the long-term funding requirements of Aer Rianta since significant capital investment at the three State airports will be an ongoing necessity to cater for growth in air traffic. In this regard, limited private sector participation in Aer Rianta, whether through a minority Initial Public Offering (IPO) or otherwise, is one possible option. It is recognised that private sector participation in Aer Rianta gives rise to certain issues of a strategic nature and the Minister will continue to reflect on all options in her ongoing consideration of the future strategy for the Company.

Irish Aviation Authority

The IAA, which was established under the IAA Act 1993, is a commercial semiState company. It is essentially a cost recovery organisation, generating its revenue largely from the provision of air traffic control services and through its regulatory functions. In 2001, the IAA generated a pre-tax profit of 5.7 million on revenue of 87.1 million and paid a dividend of 1.071million to the Exchequer. The profit for 2001 represented a reduction of 19% on 2000 and reflected the impact of the global downturn in the aviation industry in the first half of 2001, which was exacerbated by the events of September 11, as well as higher pay and other costs. Following on from the events of September 11 in the USA the IAA plans to embark on a series of measures to control and reduce its cost base by 7 million in 2002.

Aer Lingus

Preparations for an Initial Public Offering (IPO) in Aer Lingus, as decided by Government in December 1999, continued in 2001. However, due to a number of factors, namely the industrial relations unrest in the company, the impact of the foot and mouth disease and the deepening economic downturn, culminating in the events of September 11 2001, it was recognised that it would not be possible to complete an IPO. Following on from the events of September 11, and the grave financial crisis that ensued in Aer Lingus, the company completed a Survival Plan aimed at creating a more efficient flexible business model capable of restoring long-term viability. Implementation of that Plan is progressing satisfactorily.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Annual Report 2001

pg. 47

Inland Transport Sector

CIÉ

CIÉ is a key implementing agency in the delivery of enhancements in public transport under the National Development Plan (NDP). A small top level group was set up in January 2001 to help Iarnród Éireann face the challanges of expanding the rail network and delivering improved services to customers. The group examined the operations, structures and industrial relations at Iarnród Éireann and the role of the Shareholder, against a background of major investment in the railways. The Minister has implemented the report's recommendations in the areas for which she has responsibility. In particular the size of the Board was increased from six to nine members. The group produced its report in July entitled "Iarnród Éireann: The Way Forward". This report is now with the company for progressing. Currie & Brown / Ernst & Young were appointed in February 2001 to review project management arrangements within the Public Transport (CIÉ Corporate Affairs & Investment) Division. They reported in July 2001 recommending the establishment of a dedicated Investment Monitoring Unit within the Division. The Investment Monitoring Unit was established in September 2001 and Booz Allen & Hamilton Consultants were engaged in December 2001 to assist the Investment Monitoring Unit in the design of a project monitoring/reporting and gateway management system.

Energy Sector

Bord Gais Éireann

Bord Gais Éireann (BGÉ) recorded a profit after tax of approximately 87 million for the year ended 31 December 2001, an improvement of 25% on the previous year's result. In December 2001, BGÉ secured the consent of the Minister of State to construct the pipeline to the West and the second interconnector, both of which are scheduled for completion in October 2002.

Bord na Móna plc The successful financial growth of Bord na Móna plc continued in 2001. Profit after tax for the year ended 31 March 2001 was 11 million. Bord na Móna's four main business units ­ Energy, Fuels, Horticulture and Environmental ­ continued to advance the company's core business and its diversification policy. Future plans include involvement in waste management and wind energy.

ESB

In April 2001, the Electricity (Supply) (Amendment) Bill was enacted which gave effect to a 5% employee shareholding scheme in ESB. The ESOP was formally implemented in December. During the year, the ESB and its Unions agreed a Programme to Achieve Competitiveness and Transformation (PACT) which will see 2,000 staff exits and net savings occurring over the coming years, thus preparing the company for the full opening of the Irish electricity market in 2005. Despite a general increase in fuel prices, ESB looks set to achieve a higher outturn for profit after tax than that recorded in 2000 ( 30 million).

pg. 48

Department of Public Enterprise

Roinn Fiontar Poiblí

EirGrid

A comprehensive plan for the corporate governance of EirGrid, the new independent electricity transmission system operator, has been put in place in accordance with the Code of Practice for the Governance of State Bodies issued by the Department of Finance. Its day-today operations will be discharged under licence from the Commission for Electricity Regulation (CER).

Irish National Petroleum Corporation (INPC)

Following the disposal of its commercial assets and businesses to Tosco Corporation on 16 July 2001, the INPC remained in being to act as the parent body for the National Oil Reserves Agency (NORA) and to attend to residual business arising from the transaction. It is envisaged that proposals for the future of INPC and NORA will be submitted to the Government in 2002.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Annual Report 2001

pg. 49

Regulatory Issues

pg. 50

Department of Public Enterprise

Roinn Fiontar Poiblí

Strategic Objective

To promote market liberalisation and the development of effective independent economic regulators.

Energy Sector

Gas (Interim)(Regulation) Bill:

In July 2001, the Gas (Interim) (Regulation) Bill was published. The Bill aims to establish independent regulation in the gas sector and to introduce greater liberalisation of the gas market. Under the Bill's proposals, the Minister's existing gas regulatory functions will be transferred to the Commission for Electricity Regulation, which is to be renamed as the Commission for Energy Regulation. The Bill will also establish a new licensing framework for all operators in the gas market, increase the level of market opening from 72% to over 83% and allow the Minister to introduce further competition into the market by way of Statutory Instrument.

Progress Achieved

Aviation Sector

The Commission for Aviation Regulation was formally established in February 2001, to provide for the economic regulation of Irish airports on an independent basis. In total, five areas were being devolved from the Minister to the Regulator: The determination of price caps for airport and terminal charges; Slot allocation; Air carrier licensing; Ground handling; Travel trade licensing and bonding. In exercising his functions the Regulator acts on a completely independent basis as provided for in the Act. In August 2001 the Regulator produced his determination on the maximum level of airport charges. Following the receipt of several appeals against this determination, an Appeal Panel was established by the Minister, as provided for in the legislation, in November. The Department continues to be responsible for authorising flights into Ireland by non-EU airlines in accordance with the rules of the Chicago Convention. During the year 690 applications were processed.

Competition in the electricity market

The generation and supply of electricity were first opened to competition on 19 February 2000 and currently, market opening stands at about 31%. This will increase to 40% in 2002, moving to full market opening in February, 2005. The market for "green" electricity has been fully liberalised since February 2000, and the market for electricity produced from Combined Heat and Power (CHP) has been fully liberalised since April, 2001. In 2001, the Commission for Electricity Regulation (CER) issued: 11 Authorisations to construct new generating stations; 12 Licences to generate electricity; and 7 Licences to supply electricity. Under the Virtual Independent Power Producer (VIPP) process, ESB power is auctioned to licensed independent suppliers in the eligible market in advance of the construction of independent generating plants, thereby facilitating enhanced competition in the liberalised electricity market. The process continued in October 2001 with the auction by the CER of 600MW of electricity capacity and the award of the associated contracts. There is a possibility that further capacity will be auctioned in mid-2002

Inland Transport Sector

Railway Safety Regulation

In December 2001, the Minister published the Railway Safety Bill 2001. This Bill, when enacted, will establish an independent railway safety regulator to be known as the Railway Safety Commission. The Commission will have wide ranging powers of inspection, investigation and enforcement.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Annual Report 2001

pg. 51

According to the CER, the opening of the market has been very successful, with over 50% of the eligible customers moving to licensed suppliers and almost 6,000 customers moving to green suppliers.

Incorporation of EirGrid

EirGrid, the independent transmission system operator (TSO), was incorporated on 7 February 2001. The company has been licensed by the CER to discharge the TSO functions, and will commence operation following the completion of a transfer scheme and infrastructure agreement with ESB, arrangements for which are being overseen by the CER. EirGrid's functions include operating, ensuring the maintenance of, and if necessary, developing a safe, secure, reliable, economical and efficient electricity transmission system. In discharging its functions, EirGrid must also take into account the objective of minimising the overall costs of the generation, transmission, distribution and supply of electricity to final customers. EirGrid will be regulated by the CER, and, as the transmission system operator, its use of system charges and its system development plan will be subject to the approval and regulation of the CER. The CER may also give directions to EirGrid regarding the matters to be specified in the development plan, which can include indications of the manner in which EirGrid discharges its functions.

pg. 52

Department of Public Enterprise

Roinn Fiontar Poiblí

Appendix- Legislation Passed/ Progressed in 2001

Aviation Sector

The Air Navigation and Transport (Indemnities) Act, 2001 The Aviation Regulation Act, 2001

Inland Transport Sector

The Transport (Railway Infrastructure) Act, 2001 European Communities (Transport of Dangerous Goods by Rail) Regulation, 2000 The Railway Safety Bill, 2001

Communications Sector

The General Scheme of the Digital Hub Development Agency Bill The Postal (Miscellaneous Provisions) Bill, 2001 The Communications (Regulation) Bill, 2001

Energy Sector

The Electricity (Supply) (Amendment) Act, 2001 The Irish National Petroleum Corporation Limited Act, 2001 The Irish National Petroleum Corporation Limited Act (Commencement) Order, 2001 The European Communities (Minimum Stocks of Petroleum Oils) (Amendment) Regulations, 2001 Gas (Interim) (Regulation) Bill European Communities (Energy Efficiency Requirements for Ballasts for Flourescent Lighting) Regulations, 2001. The Sustainable Energy Bill

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Annual Report 2001

pg. 53

Appendix Revised estimates for the Department of Public Enterprise

Current 000 2001 Estimate Capital 000 Total 000 Current 000 2002 Estimate Capital 000 Total 000

Administration"

A.1 A.2 A.3 A.4 A.5 A.6 A.7 A.8 Salaries, Wages And Allowances Travel And Subsistence Incidental Expenses Postal And Telecommunications Services Office Machinery And Other Office Supplies Office Premises Expenses Consultancy Services Equipment, Stores And Maintenance 27,279 1,524 2,030 921 825 1,092 4,317 889 317 1,397 27,279 1,524 2,030 921 2,222 1,092 4,317 1,206 30,500 1,092 2,347 863 1,789 854 5,000 635 317 854 30,500 1,092 2,347 863 2,643 854 5,000 952

Sub-total:-

38,877

1,714

40,591

43,080

1,171

44,251

Other Services Energy

B.1 B.2 B.3 GSI- It Systems Development Energy Conservation Radiological Protection I nstitute Of Ireland Grant-in-aid For General Expenses Farm Electrification Grant Scheme Certain Expenses Associated With Bnfl Case Provision For Gas Regulators Office Radon Remediation Grant Scheme Share Capital In Eirgrid 37 825 1,345 38 3,809 622 3,949 622 7,758 4,800 650 4,500 650 9,300

2,350

291 216

2,641 216 37 825 1,345 38

2,500

215 150

2,715 150 100 1 500

B.4 B.5 B.6 B.7 B.8

100 1 500 0

Road And Rail Transport

C.1 C.2 C.3 C.4 C.5 C.6 C.7 C.8 Public Service Provision Payments To C.I.E Public Transport Projects Exps Associated With Dublin Light Rail (A) Capital Costs Of Dublin Light Rail CIÉ Public Transport Investment Prog CIÉ Railway Development Programme Provision For Railway Safety Authority Exps For Railway Procurement Agency 1 990 25 26,974 88,305 129,513 201,965 201,965 370 1,015 126,974 88,305 129,513 1 13,000 6,350 233,314 12,806 1,051 126,974 128,736 142,463 1 233,314 12,806 7,401 126,974 128,736 142,463 1 13,000

pg. 54

Department of Public Enterprise

Roinn Fiontar Poiblí

Current 000

2001 Estimate Capital 000

Total 000

Current 000

2002 Estimate Capital 000

Total 000

Civil Aviation

D.1 D.2 D.3 D.4 D.5 D6 D7 Aircraft Accident Investigation Insurance Regional Airports 251 3,987 251 19,351 2,082 1 1,270 1,270 1 100 254 21,200 2,125 1 70 6,000 254 27,200 2,125 1 70 1 100

15,364

Payments To The Irish Aviation Authority In Respect Of Exempt Services 2,082 Provision For Aviation Regulators Office Consultanciés Associated With Aer Lingus Airport Compensation Aviation Appeal Panel 1

Communications

E.1 E.2 E.3 E.4 Regional Broad Band and Technology Demonstration Programme Info Sociéty - Community Initiative Info Sociéty - Telecommunications Infra Multimedia Developments 1,652 1,629 5,079 1,383 64,757 20,697 20,697 1,652 3,012 69,836 5,130 580 2,000 28,690 44,000 44,000 5,130 580 30,690

Miscellaneous

F.1 F.2 F.3 F.4 F.5 Subs To International Organisations Miscellaneous Services Programme For Peace And Reconciliation Seabed Survey (A) Road Haulage Development Programme 254 7,086 131 698 9,465 7,086 131 698 9,465 254 250 7,300 140 700 4,500 7,300 140 700 4,500 250

Gross-total:-

283,728

454,274

738,002

342,727

502,676 845,403

Deduct :-

G.

Appropriations-in-aid

15,538

15,538

16,000

16,000

Net-total:-

268,190

454,274

722,464

326,727

502,676 829,403

The full financial statements of the Department will be published in a seperate document as soon as they are fully audited.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Annual Report 2001

pg. 55

AppendixOrganisation Structure

As at April 2002

Mary O'Rourke, T.D.

Minister

Joe Jacob, T.D.

Minister of State

Brendan Tuohy

Secretary General

Declan Murphy

Director Met Éireann

Derek Rafferty

Customer Services Manager

John Lumsden

Assistant Secretary Transport Sector Aviation

Pat Mangan

Assistant Secretary Transport Sector Public Transport (Regulatory & Institutional Issues)

Andrew Cullen

Assistant Secretary Transport Sector Public Transport Corporate Affairs, Planning and Investment

Martin Brennan

Assistant Secretary Energy Sector

John Fearon

Assistant Secretary Corporate Services

Eamonn Molloy

Assistant Secretary Communications Sector

Robin McKay

Aviation Regulation Safety & International

Maev NicLochlainn

Public Transport Regulatory Affairs

Dermot McCarthy

CIE Corporate Affairs / Investment

Tom McManus

Chief Technical Advisor

Peadar McArdle

Director, Geological Survey of Ireland

Niall Ó Donnchu

Communications (Development), e-Commerce

John Brown

Airports Regulation

Michael Harper

Bus Licencing & CIE Restructuring

Liam Daly

Public Transport Planning

Fintan O'Brien

Electricity Regulations

Austin McGarry

Human Resources Unit

Aidan Hodson

Communications (Regulatory Affairs)

Doreen Keaney

Aer Lingus & IAA Corporate Affairs Policy Air Navigation Issues Aviation Security

Martin Diskin

Road Haulage

Maurice Treacy

Rail, Public Private Partnerships

Dave Hanley

ESB Corporate Affairs North/ South Relations (Energy)

Dan Commane

Finance, Resource Accountancy, Budgeting, Co-ordination, Freedom of Information

Roger O'Connor

Director, Communications Business Technology

Kevin Humphreys

Air Accident Investigation

John Welsby

Railway Inspectorate

Peter O'Neill

Gas (Regulatory)

Matt Benville

Strategic Charge including Information Technology

Renée Dempsey

Nuclear Safety

Tom Ferris

(Senior Economist) Planning Unit

Mary Austin

Oil and Coal, Gas (Corporate) and Peat (Corporate)

Fintan Towey

Permanent Representation to the EU

Tom Kennington

Sustainable and Renewable Energy

pg. 56

Department of Public Enterprise

Roinn Fiontar Poiblí

Mission Statement

To promote the provision, development and regulation of competitive, safe, secure and high quality services in the transport, energy and communications sector

Ráiteas Aidhmeanna

Chun solathár, forbairt agus rialail seirbhísí a iomaíoch slán sábháilte agus d'ardchaighdeán a chur chun cinn sna h-earnalacha iompair, fuinneamh agus cumarsáide

2001 AnnualReport

ISSN Number: 1393-7049

www.dpe.ie

© Department of Public Enterprise 2002

Department of Public Enterprise 44 Kildare Street, Dublin 2 Tel 01-6707444 Fax 01-6709633 Email: [email protected] Website: http://www.dpe.ie Copies of this report may be downloaded from www.dpe.ie in both html and pdf format. The Department may be contacted from any part of the country for the price of a local call by dialing 1890-443311

An Roinn Fiontar Poiblí 44 Sráid Chill Dara, Baile Átha Claith 2 Tel 01-6707444 Facs 01- 6709633 Rphoist: [email protected] Laithair Eangach: http://www.dpe.ie Is féidir teangmháil a dhéanamh leis an Roinn ó aon pháirt den tír le haghaidh praghas glaoch áitiúil má dhíailiónn tú 1890-443311

Department of Public Enterprise

An Roinn Fiontar Poiblí

Developing Transport, Energy and Communications in modern Ireland

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2001

Tuarascáil Bhliantúil

AnnualReport

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