Dáil debates

Thursday, 16 July 2015

Harbours Bill 2015: Second Stage

 

3:35 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I am sharing time with Deputy Andrew Doyle. I welcome the Bill. It is very important and will lead to significant changes in our ports.

I take the point Deputy Boyd Barrett outlined and confirm that, when I was spokesperson on transport, I had serious concerns about the port in Foynes. While I am not familiar with the issues Deputy Boyd Barrett raised, I was and remain deeply concerned about the question of governance. At that time - it is a matter of record - there was a company set up by the chief executive to supply services to the port. It happened that the chief executive and his wife were directors of the company. I was deeply concerned about that and about the transfer of a significant piece of land - described to me as a ransom piece - owned by the harbour authority into the private ownership of a company. I brought those matters to the attention of the transport committee and the Minister of the day.

As I am no longer a member of that committee, my involvement with the issue has ceased. However, I agree with Deputy Boyd Barrett that there are serious issues which need to be clarified definitively when this legislation is passed. The Minister and his staff will be aware of these issues. They could arise at other ports and need to be dealt with to bring transparency, accountability and clarity in terms of the business model that must be followed by our ports. I welcome the opportunity to have this debate in that context.

Drogheda, where I live, has huge potential to develop its port Europe-wide. Perhaps the Minister of State might address the issue of Bremore port, either in his reply or at some point prior to Committee Stage. How can we further support Drogheda Port Authority in developing a new port at Bremore? I know the Minister of the day, Mr. Noel Dempsey, was in favour of it. The Harbours Acts were amended and local government made a commitment in planning to develop a new outer bypass of Dublin, which would go from Gormanstown or Drogheda right around through Naas and Newbridge down to Wicklow. Former Deputy Liz McManus represented Wicklow at the time and was also in favour of that proposal. Now that our economy is recovering and we are in a different mode, I hope we can debate these issues on Committee Stage. They should inform our opinions as we decide what is going to happen.

Drogheda and other ports on the east coast have great potential. There is huge growth in offshore energy, which could be a bonus in terms of new port facilities. I know of one local company that is anxious to get involved. It manufactures and exports products that can be used in wind energy, particularly at sea. I hope the business plan for the ports will take that sector into account.

We are faced with a dilemma which was raised by the Deputies opposite and which I raise again. I want the control of local authorities in terms of overall governance to be part of this Bill, and so does the Minister.

There is no doubt about that, but we also want them to be free and unfettered in terms of their business and their ability to create new businesses and jobs and to develop and improve port infrastructure. The Bill allows option A and option B to be considered. The Minister of State can correct me if I am wrong, but as I understand it the local authority will be informed by its research as to which option will be chosen. That is a reserved function of the county manager. I have discussed the issue with the county manager in Louth. I am strongly of the opinion that the local authority should have a hands-on approach to the development of Drogheda Port. The governance issues which are part of the legislation should be firmly and absolutely in place, but at the same time there is a need for the business model to be separate from the dead hand of people who know nothing about such matters, and who have no need to know anything about the business issues but have an entitlement and belief in the governance and improvement of the port. One might consider that an ambiguous statement, but I am clearly in favour of greater authority for Louth County Council in the running of Drogheda Port but for it to be free in its business plan.

I understand in the context of Drogheda that if the local authority were to control the port that the dividends would go to it, which could make a significant difference to the income of the local authority. I refer to such matters because the infrastructure of ports is changing. In Drogheda, for instance, the historic and traditional infrastructure on the quays of the town are no longer used by ships. We have music and other festivals, including a fantastic sea festival. An entire new business can be run from the old port in Drogheda. The leisure industry can have a significant positive effect if we organise it properly. The local authority can have an ideal influence on the development of models and activity in those areas whether the new port is at Bremore or at Tom Roe’s Point, and that the business model can be developed.

Significant issues arise in terms of development of the old inner town port, for want of a better description. We could have fantastic private development on the quays which would result in new business and commercial activities, including shopping. That would make a significant difference to the town. In many areas access to quay areas is poor due to the level of dereliction and lack of activity. The absorption of the port and town quays into the county council would give a significant strategic advantage to the local authority and its planners. It would avoid time delays in the acquisition of properties and haggling over prices. Pending such development, it would be very important for the county council to own the town quays. It does not make sense that the port authority gets a significant amount of its present income from parking charges on the quays. I do not see why that income should not go to the local authority to be ring-fenced specifically for the development of new activities centred on the old port.

The absorption of the port into the county council as an administrative unit would allow state aid by the EU in future and allow grants and cross-Border financing, for instance for training walls to keep the River Boyne navigable and to reduce the dredging costs which currently amount to hundreds of thousands of euro per annum. Under state aid rules, remaining as a corporate entity would lead to any grants being disallowed. There are considerable advantages to the absorption of the port into the county council.

The port has many properties in its portfolio. It has a fine site of several acres on the Meath side where its head office is located. The modern jetty could be used and would represent a huge advantage to inward foreign investment on the site. The new synergy between the port and the county council will make a significant difference. I am conscious that I am sharing time with my colleague, Deputy Andrew Doyle, so I will conclude. In summary, we need change, transparency, accountability in terms of the funds which are paid to chief executives and other officials of port authorities right around the country. The range of payments should be available. They may well be published in their annual reports but in view of what Deputy Boyd Barrett said it would be important to have transparency on such issues in all ports so that we know exactly what we are doing and where we are going. The legislation is very important. I welcome the debate and look forward to Committee Stage. I commend the Bill.

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