Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I thank the Senator for raising this important issue. Policy relating to regional harbours, published in the Government's ports policy statement in 2005, is that the continued operation of harbours under the outdated provisions of the Harbours Act 1946 is unsustainable on the grounds of good governance. It proposed that harbours would best achieve their potential through their transfer to local authority ownership or, in the case where harbours had significant commercial traffic, consideration would be given to bring them under the control of a port company. My Department has worked with the Department of Environment, Community and Local Government over the last number of years to progress the transfers.

The transfer of harbours is consistent with the following objectives: reduction in the number of State agencies and public bodies; strengthening corporate governance of significant State assets; unlocking amenity value of the assets to the benefit of local communities; and enabling the repeal of the outmoded Harbours Act 1946. Twelve from a total of 13 harbours have now successfully transferred. Fenit Harbour transferred to Kerry County Council on 1 October 2011 while Baltimore, Kinsale and Arklow harbours transferred to local authority control on 1 January 2012.

Bantry is now the only remaining harbour operating under the Harbours Act 1946. The core business of Bantry Harbour is the oil storage and transhipment terminal on Whiddy Island. The Phillips 66 oil facilities on Whiddy Island are privately owned. Aquaculture, fishing and tourism are prevalent in the harbour and a number of cruise liners also visit the harbour each year.

The KPMG review of regional ports and harbours, published in 1999, recommended that the harbour authority merge with the Port of Cork. It was of the opinion that amalgamation with Cork Port would provide access to port expertise, marketing, strategic development planning and the skills required for the regulation of navigation, ship and port security requirements, pilotage, safety, emergency response, pollution, etc. Bantry Bay Harbour Commissioners are currently the responsible authority under the Harbours Act 1946 for the control, operation and development of Bantry Harbour. Their main role relates to jurisdiction over the waters, such as pilotage, responsibility for safety and navigation and so on. The operation of large oil tankers, bulk carriers and cruise liners in and out of the bay requires specific expertise. The Port of Cork currently provides a harbour master's service on a contractual basis to assist in this regard.

Work commenced in 2012 to examine the requirements necessary to transfer the harbour. The harbour commissioners established a sub-committee to examine this issue and officials from my Department have been working with both the Port of Cork and the harbour commissioners on the transfer. During these discussions, the Port of Cork has clearly indicated that it is positive about the transfer and willing to work with the Department and the harbour towards this objective. Cork Port already has a very good professional relationship with Phillips 66 through the oil refinery in Cork harbour. It also has a contractual arrangement with Bantry to provide professional expertise and a harbour master to bring in large oil tankers and cruise liners into the bay. This is an absolute requirement by the company to operate the business in Whiddy to help mitigate the risks of maritime accidents, environmental damage, etc.

I met representatives of the harbour commissioners in July 2012 and more recently this month in Dublin.

It is my intention that the transfer should take place with the co-operation of the stakeholders concerned. A positive discussion took place and a number of issues were clarified.

As the Senator is aware, provision was included in the Harbours (Amendment) Act 2009 to allow the transfer of Bantry Harbour to the Port of Cork to take place. That Act provides that a public consultation must be completed before any transfer and, in section 18(2)(d), it outlines how that consultation should take place. I intend to hold a public consultation over the next month or so on the proposed transfer of Bantry to the Port of Cork, as required by the legislation.

In relation to the future and the independence of the Bantry Bay Harbour Commissioners, the board was appointed in 2009 for a five-year period which will end in October 2014. Similar to the legal position that pertained in relation to the transfer of other regional harbours, should the harbour transfer before that date the board will stand dissolved on the date of transfer.