Noel Ahern (Dublin North West, Fianna Fail)

This proposal will amend section 23 of the original 1996 Act and it allows for greater flexibility in respect of the amount of money port companies may borrow. To answer the question, the consent of the Minister for Finance and the Minister for Transport will still be required for any borrowings undertaken by port companies but the Bill allows port companies to borrow up to the value of €200 million or 50% of the value of the company's fixed assets, depending on which figure is the greater. The Department is aware that a number of port companies have proposals regarding the provision of significant additional capacity at their ports. The development and successful completion of some projects may require significant borrowings, which will be the subject of ministerial approval, on the part of these companies.

The Ports Policy Statement 2005 makes clear that the provision of adequate and efficient capacity into the future is a crucial strategic objective of the Government. It notes that significant shortfalls in port infrastructure could result in serious damage to the economy. However, it is considered crucial that some flexibility be provided in the governing legislation in order to facilitate, as far as is possible, the timely provision of sea port capacity. Some port companies have borrowed a greater percentage, relative to their fixed assets, than others. The section provides increased limits and introduces principles and policies which must be considered when those limits are being increased.