Seanad debates

Wednesday, 28 January 2009

Harbours (Amendment) Bill 2008: Committee Stage (Resumed)

 

3:00 pm

Photo of Denis O'DonovanDenis O'Donovan (Fianna Fail)

I always resented people calling quora. I thought people who did so were a nuisance but this quorum gave me the opportunity to get a small breath of fresh air and allow the poor bee who was smoke-filled to get a breath again.

Returning to the demise and the bequest of Bantry Harbour, Bantry Port and Bantry Bay to Cork, I quote from the report of Mr. Raymond Burke. It is imperative that I quote facts from his overview:

It has long been recognised that the failure to dredge the inner harbour at Bantry Bay has affected the economic and tourism growth of Bantry in particular, and West Cork in general. The need for the works must also be seen within the context of

the Cork County Council North and West Cork Strategic Plan which has integrated development as a theme,

a study under the Marine Leisure Infrastructure Strategy being conducted by the Western Division of Cork County Council into the marine leisure infrastructure in West Cork

the fact that West Cork is a Clár area reflecting the economic weakness of the region

the local population solely from their own resources have carried out all town renovations; ninety eight per cent of houses and commercial premises have been renovated

The partnership of Bantry Bay Harbour Commissioners, Cork County Council and Bantry Town Council is anxious that the necessary dredging works are addressed with delay.

To progress the matter, RPS Consulting Engineers were commissioned to develop outline costs for the proposed engineering works. RPS indicated that the likely cost of the Enabling Works, Phase 1 of the required developments, would be of the order of €8 million excluding VAT. Being beyond the means of the Harbour Commissioners, they sought financial support from the Government.

Thankfully, €3 million was committed just before the previous general election. The then Minister for Finance, now the Taoiseach, Deputy Cowen, ring-fenced that funding to commence the dredging. Certain tests are progressing in that regard. This is a positive development but fear remains in this contracting economic climate. I refer again to the report:

While recognising the importance and value of the proposal, the Commissioners were requested to prepare a report on the economic and socio-economic impact of the proposed works to support their application. As a consequence, Bantry Bay Harbour Commissioners requested Raymond Burke Consulting to prepare this Impact Study. This document sets out the broad range of impacts that are likely to arise from the dredging works.

Bantry Bay is an area of immense beauty and unfulfilled tourism potential. The Bay itself is one of the deepest in Europe though the inner harbour suffers from significant pollution and can be visually unattractive. There is frequently congestion on the pier giving rise to health and safety issues, and the sediment contains large amounts of contaminants that need to be treated before it can be reused.

To address some of these matters, the Department of the Environment, Heritage and Local Government proposes to spend in excess of €14 million on the Bantry sewerage scheme and the water supply scheme.

I refer to the report again:

The Council is also in the process of the roll-out of broadband to the area that should facilitate a growth in the service sector in the region. However, for a time, Bantry was a fairly successful market town attracting people from surrounding towns and villages to its diverse shopping area. But the considerable business investments in Skibbereen which developed large central parking facilities for local stores and brought stores such as Lidl, a very large Drinagh Co-op and will see Tesco arrive in early 2007, have pretty much flattened out any room for immediate business growth in Bantry. Many businesses in Bantry can report a downturn of up to 50% in some cases in the last two years.

Secondly, even though it is a much better and safer road, the Cork to Bantry Road was recently designated a secondary route and the Cork to Skibbereen Road designated a primary route thus further relegating Bantry to an off-route destination.

The paragraph on the Bantry Bay Harbour Commissioners is interesting. It states:

Bantry Bay Harbour Commissioners is one of the principal and most progressive regional ports operating under the 1946 Harbours Act. Cork County Council own the Bantry Bay Pier but the Commissioners own the Railway Pier and have jurisdiction over the water. The Harbour Commissioners employ two full-time staff: an Assistant Harbour Master (Captain Alec O'Donovan) and a Secretary (Ms Paula O'Sullivan). In 2001, Bantry Bay Harbour Commissioners made an arrangement with the Port of Cork Company to supply a Harbour Master service on a contract basis. This service is provided in the person of Captain Pat Farnan who acts for Bantry Harbour Board as Harbour Master entirely separate to his duties for Cork Port.

A broad range of activities take place in Bantry Bay including the holding of the strategic oil reserve by the National Oil Reserve Authority, the oil storage and trans-shipment terminal on Whiddy Island operated by ConocoPhillips Bantry Bay Terminals Ltd, and the export of aggregates to the European market by the Tarmac Fleming Quarry from Leahill Pier, a private quay located at the northside of the Bay. In addition, there is an important aquaculture sector involved in growing mussels as well as a small fishing fleet involved in catching prawn, crab, lobsters and shrimp operating from Bantry Bay. Cruise vessels anchoring at Glengarriff also come under the jurisdiction of Bantry Bay Harbour Commissioners.

In order to state the case for continuing Bantry Bay Harbour Commissioners as a separate entity, it is necessary to study the cargo and tonnage which pass through the port. Cargo throughput and cruise details since 2003 are as follows: liquid bulk, 376 tonnes which in 2004 increased to 535 tonnes and in 2005 to 825 tonnes. At the time the report was published in 2006, it stood at 781 tonnes. Dry bulk stood at 453 tonnes in 2003, 123 tonnes in 2004, 316 tonnes in 2005 and 210 tonnes in 2006. Total tonnage, at its peak in 2005, was 1,141 tonnes. It is mainly vessels dealing with oil transportation to and from the jetty, with the vessels arriving at Lea Hill pier from the stone quarry, which use the port. The numbers range from 69 vessels in 2003 to 34 in 2006, which shows the level of fluctuation. Many do not realise that cruise vessels call to Bantry Harbour. There was a total of six in 2003 and seven in 2005. Crew and passengers numbers were substantial, which means a lot of visitors came to the area. In 2003, the crew on one vessel totalled 435. The report includes other tables which are probably of no great relevance but they show the volume of cruise liner traffic to Glengarriff.

I refer to page 3, paragraph 1:3 of the report which reads:

The key findings of this impact study were as follows:

All those spoken to support and encourage the development of the Inner Harbour

The failure to address its unappealing appearance, repelling smell, lack of water depth, contaminated spoil and unavailability of the full pier is a constraint on local development

The Pier plays an important safety and commercial role in the area: the local fishing vessels tie up there; the ferries to and from Whiddy Island operate from there, and visiting yachts often moor there.

Because only a small proportion of the Pier is usable, there are conflicting demands on its single access point at times.

The inner harbour works are seen as a catalyst for the development of the town both in terms of enhancing its profile as a tourist resort as well as becoming a marine leisure centre which will offer a range of opportunities for marine tourism.

Bantry Rowing Club, for instance, is at a severe disadvantage due to the lack of slipping, launching and shore facilities. In fact, Bantry Rowing Club were denied holding the All Ireland Championship in 2007 because the Rowing Federation felt facilities were too inadequate in Bantry.

Rivercruise Ireland also indicated it was not interested in basing there because of the lack of facilities and health and safety issues. This is very disheartening for a place like Bantry which depends on tourism and where facilities are not up to standard for the rowing federation or Rivercruise Ireland. This is a sad reflection on the commitment to rural Ireland. There is general consensus that the dredging, as a first stage of infrastructural development, will have a significant impact on the economic and tourism potential of the town and region. The cost of the enabling works has been estimated at between €7.6 million and €8.8 million depending on the scenario adopted. This is an estimate because it will probably cost a lot more, having regard to the contaminants in the silt and gravel such as mercury and TNT which have been discovered in it. The report continues:

When indirect and induced effects are taken into account, the overall economic impact of that spend is of the order of €13.5 million with an overall labour content of approximately 112 man-years. At an average wage of €39,000 and a tax-take of 30 per cent, the return to the state from income tax alone is some €1.3 million.

The commencement and success of developments that are presently being drawn up for sites adjacent to the Harbour and the town in general, which have a market value of €200 million, depend very much on the clean-up of the Inner Harbour. The town's people have huge confidence in the potential of the area but, as of yet, this has not been realised.

While tourism numbers have fallen from recent peak levels, the construction of a new hotel and apartments is a reflection of the confidence that local developers have in the area.

Employment during the summer months increases by over 250 to take account of tourist needs.

The partnership with Cork County Council and Bantry Town Council in the various developments is seen as a key element of the way forward particularly within the context of the North and West Cork Strategic Plan 2002 to 2020. Piecemeal and separate development does not optimise the return from state investment. A planned programme of integrated development, as proposed in the Strategic Plan, will result in synergistic growth as each action benefits from the effects of the others.

A lot of work was done at local level to synergise and bring everyone on board. Has the Department taken into account the north and west Cork strategic development plan? Has it consulted the county manager? The county council owns the pier; the harbour board, as it stands, owns the water and other facilities such as the railway pier. I ask the Minister of State to enlighten me as to whether the other agencies involved in the development of Bantry Bay and harbour have been consulted. The report continues:

Cork County Council is preparing a Marine Leisure Strategy for West Cork ... Our consultation process supports the need and value of a marina at Bantry Bay; it is particularly endorsed by the Cork County Tourism Committee Action Plan 2005 — 2008.

These are up-to-date and relevant submissions by Cork County Council, whereas ten or 15 years ago, as an authority, it had no interest in marine development along the coastline. It has seen the light but it may be too late. In a place like Bantry with socio-economic issues greater than that of the Whiddy Island terminal and the mussel industry account must be taken of the people who live on the island. This should be considered and dealt with prior to this legislation being foisted on us. If this were done, I have no doubt there would be significant cohesion and goodwill if such an amalgamation was not forced on us but as of now, we are groping in the dark and do not know what is coming down the track. The harbour board, despite its faults and failings, is doing an excellent job and abolishing it would be akin to throwing to the wolves those of us who live in that part of Ireland. The report continues:

They, in turn, give rise to support services including boat repairs and chandlery ... According to Failte Ireland statistics, the average stay of visitors to the South West in 2005 was some 6.2 days and the average daily spend was some €80 or €114 when the multiplier effect is taken into account. The attraction of cruise vessels to Bantry would have a significant local and regional economic impact as the average daily spend of such visitors is €315, or €450 when the indirect and induced effects are included.

The average daily spend of a visiting yacht comprising two people varies between €150 and €227 depending on the source of the analysis. Yachts stay, on average, two days at a location before moving on.

It is estimated that for every euro spent by an out-of-state tourist, 52 cent eventually ends up with the government through VAT, excise duty, PAYE, etc.

When I reflect on the Bill's purpose and thrust and the more I research it, I see no practical socioeconomic benefits in its proposals. I have little faith in future negotiations that may emanate from the enacting of this legislation. I would be much more reassured if the suggested consultation process had taken place before the drafting of the legislation. It is ironic the Department encouraged consultation and meetings between the Bantry Bay Harbour Commissioners and the Port of Cork Company. If memory serves me right, it was the Bantry commissioners who went to Cork while the Cork personnel never visited Bantry to examine its facilities.

It is regrettable that the due diligence proposals, requested by the Department some time ago, took longer to complete than envisaged, through no fault of the Bantry board. These were issues that would have been better dealt with prior to the introduction of the legislation. There were valid reasons for the delays. There was confusion over the ownership of the foreshore rights with considerable delay due to legal proceedings. Completing the due diligence in a forced merger or shot-gun marriage atmosphere is not the best way to do business. This could apply to the other harbours that will be affected. While I am not here to defend the Fenit commissioners, Senator Ned O'Sullivan, who has already spoken passionately on the matter, will re-enter the fray again.

When I was a member of the board of the Bantry Bay Harbour Commissioners, I was given reassurances and commitments from successive Ministers that there would be prior consultation with the Port of Cork Company if a merger was proposed. I was given a cast-iron assurance when I was a Member of the other House by a former Minister that if any legislation were to be introduced that would adversely affect Bantry's position, it would be after due diligence and consultations were completed. This is a case of a huge cart that would need four horses to pull it but there is only one horse which does not have a chance of shifting it.

The Raymond Burke Consultants report continued:

Aquaculture and fishing are important local industries. The availability of the full pier at all times would enhance their socioeconomic value through facilitating the landing of additional catch.

Bantry Town Council, which also supports the development, would also benefit from new commercial developments through rates, development levies, car parking fees, etc.

There are many non-monetary benefits arising from the proposed works including health and safety, the elimination of the pervasive smell, environment effects as well as the feel-good factor that will arise from the expected improvements.

Based on our general calculations, the potential broad direct and indirect economic benefit to Bantry consequent on the enabling works over five years is some €40 million with a return to the Exchequer of a minimum of €13 million. Additional employment is estimated at 264 full-time equivalent jobs.

The impacts of the construction developments proposed for the north side, adjacent to the inner harbour and close to the town centre have been excluded from our calculations. Estimated at some €200 million, their overall economic impact would be some €328 million, an employment content of 2,800 man-years and a return to the Exchequer of €60 million. Income taxes would provide an additional €33 million.

It is hard for those who are not familiar with Bantry to envisage how such works would assist the town. At low tide every boat is grounded. In the 1940s and 1950s the harbour was regularly dredged and the facilities were better. Before Castletownbere was developed, I recall an incident in which 48 Spanish trawlers, riding out a storm, lined up from the pier to Whiddy Island. In 2009 it is deplorable that vessels cannot leave the pier or moor in safety when the tide is out.

Regarding the grouping of the amendments, have I the right, a Leas-Chathaoirligh, to request these amendments are dealt with separately?

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