AN ARAN Islands ferry operator has accused the Department of the Marine of abuse of its dominant position in the market by an alleged imposition of an eightfold increase in charges for the use of Rossaveal harbour in Co Galway.
Island Ferries Teoranta, a company controlled by Paddy O’Brien and his family, is seeking a number of High Court declarations, including that new charges imposed since 2003 are unreasonable, discriminatory and unrelated to the cost of running the harbour.
The action is against the Minister for the Marine and the Minister for Agriculture and Fisheries who took over responsibility (from the marine department) for Rossaveal harbour in 2007.
It is claimed the Ministers and the State are in breach of competition and EU law in abusing a dominant position in the market for the provision of harbour facilities.
Island Ferries is also seeking declarations that one of its vessels was wrongfully detained when it refused to pay new charges. It is also seeking damages.
The defendants deny the claims.
About 250,000 people take a ferry every year to the Aran Islands, the court heard.
Island Ferries, the main operator from Rossaveal, claims the Minister for the Marine made an order in 2003 under the Fishery Harbour Centres Act 1968, resulting in an eightfold increase in the annual charges. The order required payment of €1.20 per passenger as against the previous system of a flat rate per vessel.
Island Ferries received a €201,476 bill under the new charges on June 30th, 2005, when it had an average bill of €23,000 per annum between 2000 and 2003.
The department threatened to withdraw the operating permits of Island Ferries unless €100,000 was paid by July 18th, 2005, but it objected, saying the charges were unlawful.
The department later withdrew permits for two of five vessels operated by Island Ferries between the three Aran Islands; one of those two vessels, Ceol na Farraige, was later detained. On receipt of a €200,000 bond, that vessel was released and clearance to operate the ferry service restored.
Opening the case yesterday, Colm Ó hOisín SC, for Island Ferries, said Rossaveal had been designated a “fisheries harbour centre” along with four other fishing ports around the State, which meant charges for use of these harbours were set by order of the Minister.
Rossaveal was the only one of the five with a significant passenger ferry service. While the increase in charges imposed for the fishery-related functions was 58 per cent, there was more than an eightfold increase for the ferry service. Accounts for Rossaveal showed that between 2004 and 2007 the aggregate cost of running the harbour was €1.24 million of which Island Ferries was invoiced for €774,126.
The court would hear the Minister considered fishing was the priority at Rossaveal despite a decline in fishing at the harbour, Mr Ó hOisín said. In this context, the State had in recent years invested €15 million building three pontoons and ancillary facilities for passenger ferries at Rossaveal.
However, Mr O’Brien of Island Ferries, a seaman with long experience, would say these were completely unsuitable.
The case continues.