Ireland is to pay 2.5m a year more towards the upkeep of its lighthouses following a protest by British shipowners who have been picking up half the bill.
Noel Dempsey, the transport minister, has had talks with Jim Fitzpatrick, his British counterpart, about reforming a 200-year-old system of paying for lighthouses, buoys and beacons around the Irish coast.
Ships landing in British ports have been paying up to 10m a year towards Ireland's costs, through a tax of about 40c per tonne. The Irish government has topped this up with a grant since 1985 when Margaret Thatcher, as prime minister, insisted on a fairer division of the costs.
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But with the levy in Britain about to be increased, shipowners have again been complaining about the Irish subsidy. This prompted Fitzpatrick to visit Dublin at the end of last month for talks. "On the basis of a recent study, we agreed to alter the formula for apportioning the Irish costs on a north-south basis," Dempsey has said. "The existing 30/70 balance is to be replaced by 15-85, with effect from the current financial year.
"We also agreed on the need for an overall assessment of the provision of [lighthouses] to all regions in the UK and Ireland."
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There is an expectation that the three lighthouse authorities which oversee Britain and Ireland may be restructured, and could be amalgamated.
The Commissioners of Irish Lights was established in 1854 and oversees the island. It also collects light dues, but these are not enough to meet the cost of the service it provides.
Despite lobbying by ship-owners, the British government has increased the light dues. Paul Clarke, a junior transport minister, announced last week that it will go up to 45c per tonne from July 1, with a further increase to 50c next April.
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Clarke said that the three lighthouse authorities had made savings, but needed to make more. He said: "Their operating costs have been reduced by 25% in the last 10 years and light dues have not had to go up since 1993. Despite this, we are facing a shortfall in funding this year of £21m (24.6m)."