Maurice Cummins (Fine Gael)

I welcome the Minister of State to the House. I am deputising for Senator Donohoe who is my party's spokesperson in this area. As an employee of Waterford Port for over 20 years, a former chairman of the old harbour commissioners and a director of the first port board in 1996, I have a long-standing interest in portal affairs, harbours and, in particular, commercial ports in the country.

This is important legislation. I wish to identify what we in Fine Gael believe to be the key priorities for it, the main questions which need to be answered and the issues to be resolved, possibly on Committee Stage.

The main policy document for evaluating this legislation is the Ports Policy Statement of 2005. It recognises, first, that our ports are essential to our nation's prosperity — ten ports bring through almost 99% of the goods that are essential to our prosperity. Second, it identifies two crucial challenges. There is a shortfall of 12.2 million tonnes of goods to be carried between now and 2015; in other words, there is not the capacity to meet the present and, indeed, future demands on our economy. Third, there will be a funding shortfall. In the challenging days in which we find ourselves, this may be even bigger than we think. These three challenges must be met, which is why this legislation is so important.

Fine Gael has identified a number of concerns regarding the legislation which we will seek to have answered and resolved on Committee Stage. First, we must further understand the power which this Bill allows the port authorities to compulsorily purchase land. It is unclear to us at this stage whether the existing power is being reallocated or additional power is being created, and this needs to be clarified.

Second, we believe that any port development must recognise the local conditions and environment within which the port is situated. This Bill is not strong enough in this regard. It must take more account of the county and city development plans. This is a necessity.

Third, we have real concerns about the further reduction of the role of local politicians. The Bill is a further attack on local democracy and the men and women who do vital work for their communities, which we must acknowledge and continue to support. This is another attack on the fine work of local authorities by the Government.

The number of port authority directors is being reduced from 12 to eight. The number of directors appointed by the local authority is being reduced from three to a possible one. In Waterford, for instance, there is one from Waterford city, one from Waterford county and one from County Kilkenny, where the port is situated. The legislation states that the Minister may appoint from within his own nominations one director.

The Minister of State referred to a 2001-02 report which recommended that statutory provision of local authorities directors be abolished. Can we have the reasons local authority members should not be members of port authorities or regional harbour authorities? As a former member of those boards, I am aware that the board members who were local authority members were conversant with the local issues and did not have any vested interests. I acknowledge the point made regarding port users, that they should not have membership of the boards because of a potential conflict of interest, but I can see no reason why local authority members should not be members of these boards. The reduction is a retrograde step. The Members on the Government side of the House have raised this issue on numerous occasions. There has been a flow of legislation through the House in which civil servants have decided that local authority members should not be members of semi-State boards. Why should people with interest and experience in local authorities, who can and should be members of these boards, be excluded? They are elected by the people. Why exclude them?

This rat race to keep local authority members off these boards can only be stopped by the Members on the Government side of the House. We can shout until kingdom come and people can nod and agree with us but the Members on the Government side must stand up and call a halt to this. What we are saying about local authority members is correct, especially in this instance with regard to the Harbours (Amendment) Bill. I hope we will have support on Committee Stage and that the Government Members will call a halt to this and stop the erosion of the powers of local authority members.

I agree with the recommendation that port users should probably be excluded from directorships of the port companies because of a possible conflict of interest. I saw what has happened in the past so I have no difficulty with that provision. However, I have a difficulty with that policy where local authority members are concerned.

The fourth point which must be addressed is the amalgamation of port authorities. This requires careful consideration. Perhaps the Minister will elaborate on the need for the amalgamation of port authorities. I consider it a good idea but the issue should be teased out a little more.

Fifth, we must be careful in our definition of commercial activity. The prime function and role of the ports is to cater for the shipping needs of our economy. All other activities are ancillary to that function. The increase in the borrowing capacity of port companies is welcome. The port companies will have less restrictive obligations under the Bill and that is also welcome. The commercial activity of ports must be assisted. A total of 98% of the goods that come into this country come through our ports so they deserve every possible assistance.

Fine Gael understands the need for this legislation and the policy behind it. However, important questions must be dealt with. We will certainly not tolerate a further assault on the rights of local authority members and local politicians who do such good work on the boards of port companies and regional harbour boards. I hope our concerns will be considered and addressed on Committee Stage and that we will have the full support of Members on the Government side of the House in this regard.