Mr. Howard Knott:

I will outline the IEA's understanding of Ireland's freight logistics problem. The transport-related elements in the distribution of products made in Ireland and consumed elsewhere varies widely and can be up to 40% of the final value of the goods. This is, in part, due to our location as an island off the coast of Europe but also to relatively high domestic freight transport costs. A fairly small, dispersed population makes the achievement of logistics efficiencies more difficult. Food, pharma and an increasing number of other export categories now require low-carbon and product-traceable supply chains. Some of the IEA's activities which are focused on meeting these issues include the establishment and management of world-leading a good distribution practice, training and certification programme, which has been rolled out in recent years and which is currently the subject of a considerable upgrade; the setting up and driving of the IEA Rail Freight Group, which has proved particularly successful in the context of companies in the north-west region; and active participation in EU-backed logistics-focused projects under the Interreg IV, North-West Europe and Atlantic ARC programmes. Within the latter, ports and distribution centres are key to the development of efficient intermodal distribution. As these projects conclude, we will bring much of what we have learned back to Ireland.

I wish to make some general comments on the published general scheme of the Bill. The IEA welcomes the overall shape of the ports policy as announced in 2013 and as given effect to in the draft legislation. Particularly important is the consistency with the European Commission's EU ports policy of 2013. This consistency optimises the potential for Irish ports and the links thereto, both on the land side and the sea side, in securing EU funding assistance. This should also inform Irish road and rail infrastructure development linked to ports. As a result of the fact that they are not considered port companies within the terms of the draft legislation under discussion, both Rosslare Europort and Greenore have not been included in its provisions. These are both vital ports and we ask that they not be forgotten.

While the regional ports are small-volume facilities in the context of the overall picture relating to shipping, they play a vital role in the handling of bulk products such as grain, fertiliser, animal feed, construction materials, steel, paper, reusable waste, etc. During the recession, some of the traffic handled through these smaller ports migrated to their larger counterparts. However, as the 2013 Irish Maritime Development Office, IMDO figures show, major volume increases are now being experienced at the regional ports. As the larger ports become busier, it becomes more convenient to bring certain materials in through the regional ports. The IEA believes that it is of paramount importance to ensure that the planned changes relating to bringing these ports and their port companies under local authority control should not do anything to diminish the potential of any port to develop new shipping traffic or compete with ports that are currently larger.

I will now deal with matters specific to the draft legislation. Part II, head 8 deals with the future transfer of shares. The IEA supports the proposed ministerial involvement in such activity. Part II, head 9 relates to dividend policy. Port cost competitiveness is vital for trade and this dividend requirement should not be allowed to push up prices or reduce investment in the ports concerned. Part II, head 11 covers general ministerial powers and is vital to secure the safety of operation in ports and facilitate logical development. Part III, head 12 deals with the transfer and dissolution of port companies. The IEA is concerned that a port's activities may become lost within the general activities of the local authority concerned and that very specific port management and operation skills will also be lost as a result. Part V, head 19 involves the amendment of section 30 of the principal Act. We broadly support the requirements relating to directors, as set down, but are concerned, particularly in the case of smaller ports, about the prohibition on people who are engaged in work at the port concerned from serving on its board. Part V, head 20, involves the amendment of section 34 of the principal Act. The IEA supports the prohibition on directors serving on port company boards once they are elected to the Oireachtas or the European Parliament.

I thank the committee.