Noel Dempsey (Meath West, Fianna Fail)

I thank the Deputies for their comments in respect of these amendments. Long discussions on the matter to which they relate took place both in the Seanad and at the Select Committee on Transport. What we are doing is establishing a commercial approach, as outlined in the ports policy statement, in respect of our ports and harbours. Essentially, we are adopting a model which is different from that to which we have become used with regard to port companies. Such companies will now have a commercial remit.

The ports policy statement indicates that the State will no longer be responsible for financing the various ports and harbours. The latter will be obliged to provide their own funding when the new regime comes into place. If we are to make the companies as commercial as possible, we must provide those in charge of them with the wherewithal to achieve this goal. Of course, this will be subject to the oversight of the boards.

At present, boards are comprised of 12 members. However, as indicated in the ports policy statement, to achieve a streamlined position the number will be reduced to eight. This will have consequences. For example, it will not be possible to have three local authority members and two worker directors on a board of eight. We cannot state that we are determined to implement a commercial approach in respect of the ports and harbours and then leave matters as they currently stand. An inevitable consequence of moving in the direction we propose to take is that the number of members on the boards will be reduced. A second consequence is that those who might have been entitled to representation in the past will not enjoy the same level of representation on a smaller board.

We would defeat the entire purpose behind the ports policy if we were to leave matters as they stand, namely, with three councillors and two worker directors on each board. Attracting only three other directors from elsewhere would not achieve the goal we have set ourselves in respect of this matter.

When they become members of the boards, councillors do not represent their local authorities. At that stage, they become directors and have fiduciary responsibilities and obligations in respect of the governance of those boards. These individuals are not appointed to boards to represent the views of the local authorities, they are there to act in the best interests of the port companies. References to the representation of local authorities or to anti-democratic practices are not accurate in this instance.

On Committee Stage, Members, particularly Deputy O'Dowd, expressed concerns with regard to the fact that there was no indication as to what we might do in respect of local authority directors and how they might be selected. Deputy O'Dowd also inquired as to what might happen in cases where two or three local authority areas might be located contiguous to a port. I indicated I would consider those matters and I have been doing so.

I certainly am minded that instead of the Minister simply selecting someone from the local authorities, I will allow the local authorities to make nominations and to put forward their candidates for a position on the board.

However, I am somewhat amused that a Minister, who in the first instance is elected directly by the people of a constituency and who then is elected a Minister by the elected representatives of the people in Dáil Éireann, should not have a say in who should be appointed from a local authority to a harbour authority but that the local authority should have that say. There is a discrepancy in thinking in that regard. In any event, I made the political point to Deputy Broughan on Committee Stage that while I do not believe that being the chairman of a comhairle ceanntair is an absolutely necessary qualification for a member of the harbour authority, neither do I believe it should disqualify him or her from being such a member. Similarly, I do not believe that being a member of the Labour Party or the Fine Gael Party should either qualify or disqualify one from such a position. The Deputy is aware that many of these people, regardless of their party, are highly committed community activists who are as entitled to be considered as is anyone else.

However, I do not need to make an amendment to the legislation. I have given Deputy O'Dowd a commitment that I will come up with a nomination procedure that will allow local authorities to make nominations in respect of the local authority representatives or directors and I will so do. However, I cannot increase the representation because to do so would distort the balance on the boards, on which it is reasonable to have one local authority member. Although the Deputy asked that it might be rotated, I am unsure whether so doing would provide the kind of continuity a board should have. While it may be possible, I have never favoured one year each in the chair of an strategic policy committee or whatever else. Deputy O'Dowd is familiar with the position in Drogheda, in which there are three local authorities and I would prefer to stipulate that a person would have a minimum term of a couple of years on a board. However, I will consider the matter to ascertain how I might come up with such a scheme. I am prepared to provide that the nominations will come from the local authorities and that I will select from their nominations.

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