Dáil debates

Thursday, 10 November 2022

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Ports Policy

9:10 am

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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3. To ask the Minister for Transport, Tourism and Sport when the port capacity review will be published and when the full review of the national ports policy will be commenced; if he will outline the Exchequer and non-Exchequer funding planned for investment in ports in Ireland, at Rosslare, Cork and Shannon-Foynes in particular, to fund the development works needed to facilitate the construction and installation of offshore wind farms at these ports; and if he will make a statement on the matter. [55354/22]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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I ask the Minister of State to set out when the port capacity review will be published. When will the full review of the national ports policy be commenced? What level of Exchequer and non-Exchequer funding is planned for investment in ports at Rosslare, Cork and Shannon-Foynes, in particular, to fund the development works needed to facilitate the construction and installation of offshore wind farms at these ports?

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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The port capacity study is currently under way and is due for completion shortly. Upon its finalisation a full review of national ports policy will commence later this year which will look at the overall ports policy framework. The first stage in this review will be the drafting of an issues paper and it is anticipated that this will go to public consultation in early 2023. Pending this review, I have published a policy statement on the facilitation of offshore renewable energy by commercial ports in Ireland, making it clear to the offshore industry that we are committed to the provision of port facilities in Ireland for offshore renewable energy, ORE, developments. In Ireland, the contribution from the Government to the ORE industry will be embedded in the offshore renewable energy supply schemes, ORESS 1, ORESS 2 and later auctions, where guaranteed income for the electricity produced will enable the wind farms to be financed and cover the cost of required port infrastructure and services.

In relation to funding, our State ports operate as independent commercial bodies. Under national ports policy, no Exchequer funding is provided to them.

It is envisaged that like all port infrastructure, the ORE facilities will be funded through a combination of: port revenues, including from the ORE industry; EU funding; and borrowing from the likes of the Ireland Strategic Investment Fund, ISIF, the European Investment Bank, EIB, and other financial institutions. My Department is already engaging with the various institutions, including the EU Commission, on the availability of funding for ports in providing the ORE infrastructure to meet the EU's and Ireland's ambitions. In line with the policy statement, a number of ports are progressing plans for the delivery of port infrastructure to facilitate ORE deployment activity, including the ports named by the Deputy in this question. These are all trans-European network for transport, TEN-T, ports and, as such, are eligible to apply for Connecting Europe Facility, CEF, grant funding. The Department is assisting, as appropriate, eligible applicants in the application process.

9:20 am

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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I would be concerned if the expectation is that port infrastructure would be delivered as part of the ORESS because it is almost the wrong way around. To capture the full potential of the opportunity of offshore wind and to deliver it within the best possible timeframe the investment in our ports needs to happen now, not in conjunction with the development of our offshore wind farms. It is almost putting it back on offshore wind farm developers to do this.

We know the sector has prepared reports into the infrastructure deficit and has pointed towards direct funding but the Minister of State also mentioned the ISIF, the EIB and low-cost loans. How tangible are they, how quickly can they happen and how advanced are discussions at an EU level?

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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A lot of work is happening within the Department and there has been ongoing engagement with the EU, the ISIF and the EIB to lay the ground for our ports and the potential investment there. The policy statement recognised that existing ports in Ireland, or entities within ports with development plans, such as Rosslare Europort and the Port of Cork, can play a significant role in providing the required large-scale port infrastructure for those deployments. The policy specifically mentions, for example, Shannon Foynes Port and the Port of Cork, or entities within those ports. They can also play a significant part in the provision of the required large-scale port infrastructure for floating ORE.

In order to maximise the EU funding opportunities the Department has engaged extensively with the Commission to advocate for the inclusion of funding for port infrastructure required for ORE under the CEF. Ports are again engaging and applying for that funding and the Department is working with them. This is a competitive process and it is generally oversubscribed but the Department assists the eligible applicants with this application process.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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I am concerned with this response because we know our ports have applied for TEN-T funding. As the Minister of State has said, it is competitive. They have applied and they have been unsuccessful. We know that time is ticking and that we have a huge infrastructural deficit in our ports, which is within the responsibility of the Department, albeit we know they are commercial operations. There needs to be a mindset shift and the Department, the Minister of State and the Minister need to look at every option. The national ports study from the sector was good and useful and the Department has its own work ongoing on the ports policy but time is of the essence. I want to see the Minister of State outline what the investment will be in 2023, in whatever shape or form, to get the ball rolling on this because time is of the essence.

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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I assure the Deputy that huge work is happening in this space. From engagements with ports and industry it is known that ports and private entities are engaging in their own commercial discussions with ORE project developers to underpin the business case for port infrastructure developments, progression of the projects and timelines. It remains subject to the results of the auctions. On the CEF funding, this is significant now that it has been included. Again I want to commend the officials in my Department for including ORE and for fighting the fight at European level to ensure the CEF funding will include offshore renewable energy. The successful applicants can obtain grant funding of up to 50% of eligible costs for studies and 30% of infrastructure work costs. While Irish port projects were unsuccessful in 2021 in the CEF call, ports are preparing new applications for the 2022 CEF call. It is a competitive process and the Department is assisting those eligible applicants where appropriate. A lot of work is happening between the ports and industry, which is crucial. The funding must go to the right places and it must be guided through that engagement with industry.