Michael Ring (Mayo, Fine Gael) | Oireachtas source

There is smoke, but I do not know what colour it is.

I am taking this matter on behalf of the Minister who published a new national ports policy in March. This new policy aims to harness the potential of every port in Ireland, including Rosslare Europort and the Port of Waterford Company.

Our ports are vital to our economic recovery and future economic prosperity. As an island nation, we depend on the quality and efficiency of our ports more than most of our trading partners. Recent analysis by the Competition Authority indicates that approximately 84%, by volume, and 62%, by value, of all goods moved into or out of the State come through our ports. Many of our major exporting sectors, for example, pharmaceuticals, chemicals and agri-foods, are heavily reliant on the commercial ports.

It was clear that the previous ports policy did not allow for the diversity within the sector. There are 19 ports that handle commercial traffic in any given year. There are, however, big differences between these ports and their roles and functions. The new national ports policy, therefore, categorises them as ports of national significance, tier 1; ports of national significance, tier 2, and ports of regional significance. National ports policy must focus on those ports which fulfil a national function. This realignment of national policy focus will, in part, be facilitated by a transfer of control of the ports of regional significance from central to local government. Legislation to provide for these transfers will be introduced by 2015.

Funding for port infrastructural development must be sourced by the ports. There is no Exchequer funding available. The Government is open to a variety of mechanisms for private sector investment in the port sector. Additional funding opportunities may also arise through the European Investment Bank or other State or European sources. Any such investment will only be made, however, on a commercial basis with a commercial return.

At European level, work is continuing on the new trans-European network transport regulation which will allow for some parts of the network to avail of EU funding through the Connecting Europe facility. Both the Port of Waterford Company and Rosslare Europort are designated as forming part of the "comprehensive" network and will, therefore, have the opportunity to apply for such funding, if required, in the future. National ports policy categorises Rosslare Europort and the Port of Waterford Company as ports of national significance, tier 2. These are ports that are responsible for at least 2.5% of overall tonnage through Irish ports, have the clear, demonstrable potential to handle higher volumes of unitised traffic, and have the existing transport links to serve a wider, national marketplace beyond their immediate region. Between them, these two ports handle approximately 8% of total tonnage handled in the State and enjoy good road and rail connectivity. Both offer services in the higher value unitised sectors, lift-on lift-off in Waterford and roll-on roll-off in Rosslare, that support competitive conditions within these sectors by providing an alternative to the two larger unitised ports of Dublin and Cork. It is, of course, the case that both Rosslare and Waterford Port face differing challenges.

Rosslare Europort is unique within the commercial port sector as it operates as a division of larnród Éireann rather than as a stand-alone commercial port company. This is due to its unusual legislative background and the port is technically part of the Fishguard and Rosslare Railways and Harbour Company. Several studies have highlighted the potentially inhibiting factor of the port's unusual legislative and operational status, when compared to the other State-owned ports, and recommended its integration within the State commercial port governance framework. In January this year Indecon economic consultants were commissioned to examine the port's current commercial and operational efficiency and consider whether the port was maximising its potential. It is expected that the report will be completed and presented to the Minister in the summer. Without wishing to prejudice its conclusions, the Minister is committed to acting to ensure the port's potential is achieved in line with its designation as a port of national significance, tier 2.

The Port of Waterford Company has, unfortunately, witnessed a significant fall-off in trade in the past decade. This is particularly severe in the case of its share of the lift-on lift-off market which fell from almost 20% in 2001 to 5% in 2012. In real terms, the drop in total tonnage handled in the Port of Waterford across all modes and by lo-lo is even starker, falling by 30% and 29%, respectively, between 2001 and 2011. These declines led to the company last year commissioning an external review of its business. That review contained a number of important recommendations designed to address and reverse the company's current situation. The board of directors has accepted these recommendations and is working towards their implementation, notwithstanding the challenges involved. The implementation of these recommendations is crucial to the future of the Port of Waterford. Like Rosslare, the port is significant in the context of a national ports policy and the Government is committed to ensuring it achieves its potential.

Rosslare Europort and Waterford Port will continue to play an important role in the economic development of the State. Obviously, they face challenges, but both have significant potential and the Government is committed to ensuring they enjoy a vibrant future.