Mr. Eamon Bradshaw:

I thank the committee for the opportunity to speak this morning. We are not legislators or legal people so my presentation is about the context in which the port of Galway will operate following the transfer of the shareholding to Galway City Council. We are very much aware of the proposed changes and are kept well informed by the Department of Transport, Tourism and Sport. We take a positive view of the changes.
The steering group for ourselves and Galway City Council has been appointed. The committee will already have received a copy of our report relating to the Bill and, second, a copy of a submission to the Department of Transport, Tourism and Sport on the transfer of control of ports of regional significance to local authorities.
The port of Galway is a progressive and forward-thinking port with major ambition for expansion. This ambition is strongly supported by the current and past boards. The port is a gated medieval port operating for just four hours per day, with a maximum capacity to handle ships of not more than 7,000 tonnes. Despite this, the port has been profitable every year since its incorporation in 1996. There was an exception in 2012 due to necessary works associated with the Volvo Ocean Race stopover. At this stage, however, the port is not fit for purpose. What business could be sustainable if it were only open for four hours per day?
The port has applied to An Bord Pleanála for planning permission for an extension to the port which will involve the formation of approximately 24 hectares of new land and 660 m of deep-water quays. The result will be a modern port capable of facilitating ships with a tonnage in excess of 30,000 tonnes and the world's largest cruise liners. Unfortunately, we recently had the experience of the Crystal Symphony, which came into the bay and anchored off Mutton Island but was unable to bring its 1,500 passengers ashore due to weather conditions and the fact that it could not berth. That is an ongoing problem and a major disadvantage. The development of the new port will allow, in turn, the development and rejuvenation of the inner dock area of 32 acres which is located in the city centre. The plans in that respect are for arts and tourist facilities and living accommodation. Connected to Galway Harbour Company is the Galway Harbour Company Enterprise Park of 40 acres, in which 500 individuals are employed. A further 500 jobs are projected to result from the port extension. In addition, 200 jobs will be created during construction.
The national ports policy, NPP, which was published in 2013, designated the Port of Galway as a port of regional significance or in the third level of commercial ports in Ireland. This designation was not welcome, as it clearly placed the port at a disadvantage in terms of competing with national ports - that is, tier 1 and tier 2 ports. More importantly, it excluded the port from any possible development funding from the European Union, such as TEN-T funding. The port is the largest port in Ireland to be excluded from possible European funding. As the only designated commercial port in the west of Ireland and with a catchment area extending from Clare to Donegal and east to the midlands, the need for a proper commercial tier 2 national port in the region is obvious. In addition, Galway city is the third largest urban area in the country, with a commercial port operating since the Middle Ages. Notwithstanding these issues, the port has worked constructively with Galway City Council, the proposed new shareholder, and the Department of Transport, Tourism and Sport in implementing the change of shareholder. It has also been very much involved in its remit under the plan for the provision of marine and leisure facilities.
It is worth mentioning the visit of the Volvo Ocean Race on two occasions, in 2009 and 2012. In 2012 the port of Galway hosted the final leg of the race and was adjudged the best stopover of the race. The economic benefit to Galway was enormous, with more than 500,000 people visiting the event, including 100,000 overseas visitors, and €60.5 million spent, with an input of €6.5 million by local enterprise. We hope to get the race back again. We have strong support in that regard from all local entities. We have bid for the Tall Ships Race for 2018. We are ambitious in that regard.
There are critical issues. With regard to port expansion, there is no provision or safeguard in the Bill to allow for the proposed and ongoing planning application to be brought to fruition. Over €3 million has been spent on the planning process to date, but this is not recognised in the national ports policy. The NPP has identified the tier 1 and tier 2 ports as the lead ports in providing deep-water facilities in the State. The contradiction is that the port of Galway holds permission from the Government to apply for deep-water facilities as part of the port extension. The port requires in-built confirmation that the completion of the project would not be stymied by the new shareholder or the fact that the port is not a tier 1 or tier 2 port.
As I understand it, the port of Galway will continue to be governed by the Harbours Act 1996 and amendments to that Act. Are the amendments fully compatible with the Local Authority Acts? Will the fact that Galway City Council, in its role as shareholder, is governed by the Local Authority Acts have an effect on the port of Galway?
The election of directors is a vital decision making process for a commercial enterprise. What will the process be? Will the chief executive of Galway City Council have the power to appoint directors? Will the council members have an input? Will the Minister for the Environment, Community and Local Government or the Minister for Transport, Tourism and Sport have a veto? The most important question is one of suitability, which is not always the case for the appointment as a director. There is a need for directors with specific skill sets. The process must be open, transparent and accountable. This is particularly true where the executive team is small in number. For example, in the port of Galway the only two executives are Captain Sheridan and myself.
With regard to funding, most people would question the funding for the development of the port, which in phase one will amount to almost €52 million. This has always been a difficult issue and, in terms of approval, a protracted process. What level of decision making, if any, will the new shareholder have in approving funding for the port? More importantly, could it be a dissenting voice? As the funding for the proposed extension of the port of Galway will be dependent on significant borrowings, it is essential that the decision-making principles be clear and unambiguous. Will the shareholder be in a position to grant some form of funding for port development?

This is disallowed under the national ports policy.

It is essential that the non-national ports remain competitive and fit for purpose. Many local exporters and importers require the retention of commercial ports in their areas if they are to continue to trade competitively. Travelling to tier 1 or tier 2 ports would result in prohibitive costs for many port users in the western region. The Bill should not or cannot be allowed to give tier 1 and 2 ports a totally dominant position in the marketplace.

The Port of Galway has ambitions to become a tier 2 port in the short to medium term. There must be a mechanism to allow for a port to be upgraded to a higher level. No such facility has been included in the proposed legislation. This is a very important issue from the point of view of the Port of Galway, particularly if the extension of the harbour proceeds.

I am aware that this matter is covered under other legislation, but the issue relating to the foreshore is a major one for many ports and remains a problem, particularly in a legacy context. There is no mention of this matter in the proposed amendments.

From our perspective, some of the most important people with whom we deal are the members of our staff and we did ask them to contribute their views on the national ports policy. Staff are a vital ingredient in the management and development of any port. The position is no different when it comes to the Port of Galway. We have an excellent and dedicated staff and they articulated their view on the port by saying: "The ports of Regional Significance are just that i.e. significant and they must be allowed to play their part in the ongoing development of regional/economic policies while at the same time protecting the rights of employees."

Regional ports of significance should remain significant contributors and driving forces of the local economies they serve. Any decision or legislation that would reduce the economic influence of these ports should be shelved. Failure to develop the Port of Galway would have a devastating effect on many local industries that ply their trade through the port. The consequence would be a major loss of employment in areas that are already unemployment black-spots and ravaged by emigration. I thank the Chair for his indulgence.