Dessie Ellis (Dublin North West, Sinn Fein) | Oireachtas source

I thank the Minister of State for his opening remarks. This is a very important Bill. Harbours are an important part of many coastal communities in our country. They provide for recreation and commerce and they are a major asset in attracting tourism, especially for an island economy such as ours. Many cities and towns depend almost completely on their harbours for their economy. This is not the case in most Irish harbour towns but it does underline the value of a harbour to local economies. If best utilised, they can be an engine for growth and a sustainable source of good employment. Access to the sea brings many opportunities to a town or city, but it also brings the challenge to maintain that opportunity and to grow it. In too many cases, harbours have been allowed to go to rack and ruin and so too has the local economy. A harbour policy must have at its core a drive to maximise the potential of our harbours, to support and encourage growth and job creation and to do so in a sustainable and environmentally sound way which incorporates all the local community in decision-making. In this regard, the Bill may be taking a step in the right direction but, unfortunately, it falls short at an important hurdle, thus rendering the Bill's provisions much less powerful and positive.

The Bill empowers only local authority chief executive officers and provides little or no democratic oversight of the harbours by local councillors who are the people elected to make the decisions for their community. The CEO is unelected and, in too many cases, is utterly unaccountable. He or she often has his or her own agenda which can run contrary to the mandate of the council given by the local community in democratic elections.

Studies by the OECD and general experience have shown that councils are efficient and effective at managing and overseeing local services. This is because they have the local know-how and expertise to make it work and to complete the job in hand. They also have the support of the public. They have inbuilt mechanisms for engagement with the public as well as being accountable. This does not always work perfectly, but certainly our local authorities and our councillors are much more accountable than those in the corporate world who only care for the bottom line and their shareholders. I strongly believe that democratic oversight is an important ingredient in finding success in the management of our harbours but also in ensuring success benefits the wider community which will last for generations. However, this Bill does not aid this aim and it requires significant amendment to place democratic structure central to the management and direction of our harbours.

The Bill seeks to move the control of five harbours, at Drogheda, Dún Laoghaire, Galway, New Ross and Wicklow, into new governance structures. This Government is claiming the control will now be handed to the local authority but, in reality, control will rest with new bodies established by the chief executive officers of local authorities and will have little, if any, democratic oversight. The legislation will give the CEO a number of powers without any accountability to the councillors of the local authority. The CEOs of the relevant local authorities will nominate two new directors to each harbour without consultation. The decision will most likely be rubber-stamped by the Minister without any consideration by the relevant Oireachtas committee.

The Bill empowers the CEO, with council consent, to dispose of the shares in the harbour company. I welcome that there is council consent required, but the disposal of such lands, which might be important to the wider ports strategy, must be handled very carefully. The CEOs will be able to alter unilaterally the memorandum and articles of association of the harbour company. This could have far-reaching effects on the harbour company involved and requires no consultation with or consent of the council. This is too great a power to have in just one person’s hands. A decision to change memoranda or articles of a company should not be taken without serious consideration, but allowing it to be one person’s decision makes this all the more likely. The CEO will be empowered to authorise unilaterally commercial activities by the harbour company. Commerce is an important part of what harbours can bring to a community but it should not be above the interests of the wider community. Such decisions require consultation and democratic oversight through the seeking of council consent.

In many cases such decisions may be relatively minor but that should be for the elected representatives of the community to decide.

The board can sell off assets without any democratic oversight by local authorities. This is completely wrong and given the somewhat cold way that CEOs can approach the accounts of the local authority, it could lead to very damaging sell-offs completely against the wishes of the community. CEOs will be able to approve of harbour borrowings unilaterally. This is again another unchecked power for CEOs which allows them to make very serious decisions without consulting local representatives. Consultation is crucial in these cases so that all issues may be taken into account.

CEOs will have sole oversight of accounts of harbour companies. Local authority representatives should be allowed to debate the accounts and have oversight of the audits of the harbour company. Similarly the chairperson of the harbours board must submit a report annually to the CEO but not to the local authority members to consider, debate or question. CEOs will have the sole right to commission a performance review of the board of the harbour. Councillors elected by the community should have this power given their role in ensuring the provision of quality services and value for public money. Only the CEO will be able to approve new superannuation schemes with no democratic consultation or otherwise needed. The CEO will be able to issue directions on the policy of the harbour company but this cannot be done by the elected councillors.

The Bill will transfer all employees of harbour companies to the local authorities but remuneration cannot be less favourable, so a local authority has no ability to reduce pay to highest earners in a harbour company. Concern was previously raised that commercial bodies which receive State support are able to pay high-ranking employees very large wages without any input from the State which funds them. This move should empower local authorities to consider the wage bill of high earners within the harbour company should savings need to be made.

The Bill proposes to make the harbour structure more democratic and accountable. Unless these concerns are addressed I am doubtful if we can fully support a Bill which gives such a range of powers to the CEO of the local authority but with no oversight or need for consultation. We will seek to secure a number of amendments on Committee Stage. It is welcome that the Joint Committee on Transport and Communications has supported the Bill. Bringing it before that committee for initial scrutiny was a very positive step. The Bill also provides for the possible future transfer of Bantry Bay Port and Dundalk Port to local authorities.

The Minister's plans for gender balance on the committee are very important. It is important that the chairman designate of the board must come before the Oireachtas committee, as stated in the Bill. The make-up of the board is also very important and the Minister of State has outlined some issues there. I believe that the local authority members should be represented on the board.

With the transfer of ports and assets, I hope there will be no job losses. Will the Minister continue in the same role as we have seen in the past where people are nominated to the board and the Minister makes the decision as to who will be the CEO or puts forward a number of names and then we go to the committee but de factoit is already a done deal? It is a very poor way of doing things. It would make more sense for a number of names to be put forward with the committee having some decision-making powers in that.

Addressing local concerns are very important. On the cost of these transfers to the local authorities, will there be a write-down of debt? Will they come with no baggage when they are transferred over to the local authority? Will there be investment or will the local authorities be left to deal with it, with no expectation of money coming forward to help with improvement projects?

I look forward to debating the Bill further and we will table a number of amendments on Committee Stage.

See this speech in context