Oireachtas Joint and Select Committees
Wednesday, 27 February 2013
Joint Oireachtas Committee on Transport and Communications
Port of Cork Company: Discussion with Chairman Designate
9:55 am
Mr. John Mullins:
Yes, large office spaces are not available. Apple is building its own site currently and the most recent large development of 200,000 sq. ft. is practically fully tenanted at Mahon Point. There has been a delay in development and a lack of development when one considers the demographic growth that all our urban areas will go through in the future. The difficulty with that is, from a transport of view, we are allowing more commuter traffic within urban areas and public transport from outside the city bounds rather than within. From a transport policy perspective, therefore, as well as being an opportunity for the Port of Cork, the development of the north docks and progressively each of the phases that will be presented to a Cabinet sub-committee over the next while will be a major development. Clearly, somebody has to take responsibility for the stewardship of that and that needs to be looked at. As chairman designate, I will play my part, as will the chief executive officer, in facilitating what needs to be facilitated for the urban regeneration of the city.
With regard to Whitegate refinery, I have a deep energy background. Thankfully, during my time, we developed a 400 MW power plant on the site and the port is right next door to it. The refinery, from a European point of view, is seen as of suboptimal size but if we had no refinery, we would be up there with Luxembourg as the only European country without a refinery. NORA is a big issue in brief of the Minister for Communications, Energy and Natural Resources, but from a national security point of view, I would have deep concerns if we did not have indigenous refining in the country. There is an opportunity, particularly in the context of the vessels leaving Cork Harbour currently, to carry out seismic testing and engage in drilling in Barryroe, to refine that product in Whitegate into the future. I would recommend that no collapsing decision with respect to the refinery, strategic or otherwise, should be made until we understand exactly what opportunities are there in the oil industry. However, from a Port of Cork perspective, I have outlined that if the refinery closed, 30% of the port's income would disappear, which would put pressure on it as a commercial entity. That is a critical dimension and I made this point to the Minister in my initial meeting with him.
As president of the chamber of commerce, we got involved in the passenger link process. All the stakeholders in Cork city and county and south Kerry were interested in this because Killarney would benefit as much as anywhere else from the link. As I understand it, the reality is that the bread and butter of a ferry is its freight traffic and, regrettably, that was not coming to pass. Rosslare is still seen, with tachometers and European regulations, as an option rather than using a ten-hour journey to Swansea from Cork. It also needs to be understood that perishable goods need to get to their markets as quickly as possible and that is another key dimension. If another such investment is pending, the Port of Cork will look at that. I welcome what the Deputy said about Michael McCarthy. The port put a great deal of its own investment into the Fastnet line. One of the opportunities being considered by the port is the feasibility of a direct link to northern Spain, which could also open up a new market for produce. As long as there is a Rosslare-Pembroke service with a short journey time, it will be difficult to compete on freight.
The Deputy referred to a conflict regarding commercial traffic. The systems operated in the port are much more sophisticated now and the asset management systems have improved immeasurably. The website shows the placement of every vessel in the harbour in real time. That is the level of information technology that has been invested in at the port. The details of the ships are available online.
That is an example of how the pilotage is managed in the port. I think I have addressed all the issues raised. In regard to Bantry, I look forward to engaging with the Deputy.
In response to Deputy Michael Colreavy, I do not have a conflict of interest with any of the previous companies with which I worked nor do I believe I have any conflict with any entity, but if I do I know the rule which is that at a board meeting I must excuse myself. I am very familiar with the code of practice of semi-State bodies having been a chief executive of a semi-State body and having working in semi-State bodies for 13 years of my career. I understand the whole issue of conflict of interest. I do not have a current conflict of interest with any of my previous employers.
Clearly, I have been reading into my brief with the chief executive and have had numerous meetings with the chief executive on the port. I will have to steward ten to 11 board meetings per year. Next Monday and Tuesday I have a two-day strategic session when I hope to meet all the members of the board for the first time. The rule of thumb for a board director is that it is at least double the time. There is an element to the chairmanship of the Port of Cork which is also ceremonial, unlike the role of a chairman in Dublin or elsewhere. Given the history of the chairmanship of the port, going back to the time of the harbour commissioners, one has to attend many functions on behalf of the Port of Cork because of the importance of the port to the region. Clearly that is something I have to do.
From a corporate social responsibility, CSR, point of view, I welcome the comments. During my time in Bord Gáis I was very conscious of corporate social responsibility, particularly in the context of fuel poverty. When investing in infrastructure it is vitally important to engage with the local community. For example, when developing the Whitegate power plant we worked locally with Lower Aghada and Whitegate community group to ensure it was happy with the traffic traverse system which involved 800 people going to and from a site. It was vitally important that the local community was satisfied that we were not disruptive in any way. When we built pipelines across the country we had to engage. Therefore, I fully understand the concerns in that regard. The rules of strategic infrastructure appropriately include consultation. They do not hinder but set out appropriate standards for engagement with the local community. That is vitally important for any new infrastructure, particularly if we are considering major development in Ringaskiddy.
The issue of the public service stifling development was mentioned. I have been president of the chamber of commerce in the region for the past two years. In any review with all the managing directors of the major companies in the region, never once have I had an issue from any of the managing directors who were exporting, particularly agrifood, Pfizer and other pharmaceutical companies, Apple etc., on the Port of Cork in terms of a weakness for the region. Port charges have not changed for many years. In terms of competitiveness that is an issue of which we need to be conscious while also seeking to ensure the cost base of the port is appropriate to its market. I have significant experience of downsizing but I also have significant experience of upsizing which is all part of the change in a company.
All of the reform in Bord Gáis in the past five years has been done with the assistance of the Labour Relations Commission. Certainly, in the context of Labour Court rulings, it is fundamental in the rules of industrial relations. That is the way to do business. Very significant change happened in the industrial relations environment and regarding rationalisation in Bord Gáis while I was with the company, but it was done by agreement. I am aware that the rationalisation agreement put in place in 2009 at the Port of Cork is probably one of the last steps that needed to be taken in terms of flexibility in the port. From the brief I have got, I do not think industrial relations or downsizing will be the top priorities. It will be more about commercialisation, profitability and investment.
I welcome the question on renewable energy projects. The power plant built in Whitegate was landed in Ringaskiddy and brought across the harbour. There had been cases where blades and micelles for onshore wind had been brought to all harbours across the country. There is an opportunity, in my view, potentially to preassemble offshore turbines for the Celtic Sea and the Irish Sea in a number of ports. The Port of Cork is one of the ports and has been looked at by a number of manufacturers for preassembly before they go on a barge, before they are placed.
In the chamber of commerce we conducted a study in recent years. The harbour area is a national energy hub with refining, power plants, the maritime research area, renewable energy landing and, I hope, assembly. That is a real opportunity. With the potential onset of oil and gas exploration, who is to say we will not have a mini-Aberdeen in Ringaskiddy in the future.
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