Denis O'Donovan (Fianna Fail)

I will refer to two more pages of this report and then I will hand over to the Minister of State. I will need a break because I am getting a bit tongue-tied. I appreciate the Cathaoirleach's efforts.

People wonder about the financial viability of any port. In 2002, the board engaged a very professional group, PricewaterhouseCoopers, to look at the financial viability of Bantry. Obviously, there was no point misleading us because most of these auditors and accountants come along and say something will not add up or stack up and that one can forget about it. It is important to note what it said back then. I know many of the parameters change but many of them still apply.

The report states that the harbour commissioners prepared financial projections for ten years ending in December 2011 and that the projections disclosed the port's capacity to generate operating profits and cashflows of €7 million and €8.8 million, respectively, from operations over the ten-year period. That was probably erring on the side of caution.

The report states that the projected revenues are highly dependent on the continued existence of the Bantry terminal, the National Oil Reserves Agency, NORA, and continued investment by the new terminal operator, Tosco, which is now Conoco Phillips. It also states that the commissioners understand, based on discussions with the company which owned the facility, Tosco, that the latter has ambitious plans for the Whiddy terminal and is committed to a high level of further investment. It states that in preparing the revenue projections, the commissioners have taken a more conservative view than the discussions with Tosco might indicate in terms of potential revenues.

The report states that based on the assumptions formulated by the commissioners, the projections disclose the port's capacity over the period covered to undertake future infrastructural developments, and finance these developments through State funding, bank borrowings and international cashflow resources. It states that servicing bank borrowings used to finance development expenditure in this respect and projected bank interest and term loan repayments amount to €4.1 million in the ten years ending 31 December 2011.

It is important to state that we looked closely at the possibility of borrowing money from the banks. I do not know whether that is viable at this juncture. I hope the current strictures imposed by banks on personal and commercial borrowing will be lifted over the next couple of years because if they are not, we will be in a mess.

The report states that the projections also disclose a requirement for an immediate cash injection of €6.3 million to finance the port's planned capital expenditure programme in regard to its new pier project. It states the harbour commissioners have included other capital and development expenditure of €5 million in the projections which have not been specifically identified and that this relates to social development expenditure of €1.2 million for amenities and facilities adjacent to the port and other commercial deep water development projects of €3.8 million. It states that these projects are to be financed through a combination of internal resources, 67%, and bank borrowings, 33%.

The Minister of State and others alluded to the fact that approximately four or five reports have been initiated by the Department. It is also important to note that the Bantry Port company, which is to be dissolved, also carried out two excellent reports on its future viability. If there is an issue with some of these, we should be informed.

To continue on port development, the report states:

The primary objectives of the Port's capital expenditure programme are to sustain and develop the Port's existing activities, increase safety and are entirely consistent with the Bantry Harbour Draft Development Plan and the West Cork Development Plan. In this respect, The Harbour Commissioners have prioritised the development of a New Pier Project comprising of Pier, Slipways, road access and parking facilities, at a cost of EUR 6.3 million. The design and tender process has been completed in respect of the project. The Pier development will address concerns[.]

Unfortunately, that project was subsequently abandoned, even though €1.9 million had been provided for it by the then Minister, Deputy Frank Fahey.

The report further states:

Furthermore, the reactivation of the oil terminal and facilities at Whiddy Island in recent years imposed greater responsibility on the Harbour Authority for safety standards, environmental and water quality protection. These responsibilities——