Spending Review 2018 Subsidised Ferry Services to Offshore Islands DEIRDRE MAHONY EVALUATION UNIT, DEPARTMENT OF CULTURE, HERITAGE AND THE GAELTACHT JULY 2018 This paper has been prepared by IGEES staff in the Department of Culture, Heritage and the Gaeltacht. The views presented in this paper do not represent the official views of the Department or the Minister for Culture, Heritage and the Gaeltacht. A copy of this Spending Review Paper will be made available, in Irish, on the Department of Culture, Heritage and the Gaeltacht’s website i (www.chg.gov.ie) later in the summer. ii Table of Contents CHAPTER 1: INTRODUCTION ...................................................................................................... 1 1.1. Introduction ........................................................................................................................................ 1 1.2. Overview of the Ferry Services Programme......................................................................................... 1 1.3. Methodology for the Spending Review Paper ..................................................................................... 2 CHAPTER 2: RATIONALE ............................................................................................................... 4 2.1. Legislative Context .............................................................................................................................. 4 2.2. Policy Context ..................................................................................................................................... 5 2.2.1. Strategic Framework for developing the offshore islands of Ireland ............................. 5 2.2.2. Programme for Government .......................................................................................... 7 2.2.3. Project Ireland 2040 ........................................................................................................ 7 2.2.4. Statements of Strategy ................................................................................................... 8 2.3. Previous Evaluations ......................................................................................................................... 10 2.3.1. Comptroller and Auditor General Report ..................................................................... 10 2.3.2. Review of Certain Subsidised Ferry Services to the Islands .......................................... 11 CHAPTER 3: PROFILE OF THE ISLANDS ................................................................................. 13 3.1. Population Trends on Offshore Islands .............................................................................................. 13 3.2. Individual Island Population Profiles ................................................................................................. 17 3.2.1. Donegal ......................................................................................................................... 17 3.2.2. Mayo ............................................................................................................................. 21 3.2.3. Galway ........................................................................................................................... 24 3.2.4. Cork ............................................................................................................................... 28 CHAPTER 4: INTERNATIONAL EXPERIENCE ........................................................................ 35 4.1.1. Denmark ........................................................................................................................ 35 4.1.2. Greece ........................................................................................................................... 36 4.1.3. Norway .......................................................................................................................... 37 4.1.4. Scotland ......................................................................................................................... 37 4.1.5. Commonalities between service procurement and provision ...................................... 38 iii CHAPTER 5: OPERATION AND ADMINISTRATION ............................................................. 40 5.1. Overview of Subsidised Ferry Services .............................................................................................. 40 5.1.1. Service provision ........................................................................................................... 40 5.1.2. Island Services ............................................................................................................... 41 5.1.3. Planning for future service provision ............................................................................ 44 5.2. Procurement of lifeline ferry services - Ireland .................................................................................. 45 5.2.1. Principles underpinning procurement .......................................................................... 45 5.2.2. Departmental Procurement of Ferry Services .............................................................. 46 5.3. Administration .................................................................................................................................. 49 5.3.1. Monitoring and Performance Management – Data requirements .............................. 49 5.3.2. Monitoring and Performance Management – Data collection and analysis ................ 50 5.3.3. Price Variation Clauses .................................................................................................. 51 CHAPTER 6: EFFICIENCY ............................................................................................................. 53 6.1. Cost trends and service efficiency ..................................................................................................... 53 6.2. Level and Trend of Service Costs ....................................................................................................... 53 6.3 Level and Trend of Service Outputs ...................................................................................................... 57 6.3.1 Sailings and Extra/Missed Sailings ................................................................................ 57 6.3.2 Passengers ..................................................................................................................... 60 6.3.3 Cargo and Vehicles ........................................................................................................ 63 CHAPTER 7: EFFECTIVENESS ..................................................................................................... 65 7.1. Impact of Subsidised Ferry Services ................................................................................................... 65 7.2. Population Changes........................................................................................................................... 65 7.3. Employment ...................................................................................................................................... 70 7.4. Tourism ............................................................................................................................................. 71 CHAPTER 8: CONCLUSIONS AND RECOMMENDATIONS ................................................... 75 BIBLIOGRAPHY ................................................................................................................................. I APPENDIX 1: ISLAND POPULATIONS – 1996 TO 2016 ................................................ III iv APPENDIX 2: ISLAND POPULATIONS WITH SUBSIDISED SERVICES – 1996 TO 2016 V APPENDIX 3: OVERVIEW OF FERRY CONTRACTS ............................................................ I APPENDIX 4: ISLAND POPULATIONS WITH SUBSIDISED SERVICES – GENDER PROFILE – CENSUS 2016 ....................................................................................................... I APPENDIX 5: ISLAND POPULATIONS WITH SUBSIDISED SERVICES – AGE PROFILE – CENSUS 2016 ....................................................................................................... I APPENDIX 6: ISLAND POPULATIONS WITH SUBSIDISED SERVICES – PRINCIPAL ECONOMIC STATUS – CENSUS 2016 ................................................................................. II APPENDIX 7: ISLAND POPULATIONS WITH SUBSIDISED SERVICES – IRISH LANGUAGE – CENSUS 2016 ............................................................................................... III APPENDIX 8: SUBSIDISED FERRY SERVICES – OUTPUTS 2008 TO 2017 ................. I APPENDIX 9: SUBSIDISED FERRY SERVICES – PASSENGER AND CARGO SAILINGS BY ROUTE – 2008 TO 2017 .................................................................................................. I APPENDIX 10: TYPICAL TENDER SCORING MATRIX ......................................................... I APPENDIX 11: PERFORMANCE REPORTS REQUIRED FROM SERVICE PROVIDERS I APPENDIX 12: NON-ISLANDER PASSENGERS – 2008 TO 2017 .................................... IV v Summary The Islands Programme of the Department of Culture, Heritage and the Gaeltacht supports island communities by providing subsidised ferry services between the islands and the mainland to ensure the continued viability of these communities. Over the past decade, these subsidised ferry services have delivered the following outputs which