Pat O'Neill (Fine Gael) | Oireachtas source

I welcome the Minister to the House to debate the Harbours Bill 2015. As the Minister indicated, this Bill will continue what was Government policy from 1999 to 2011, when 13 of our smaller harbours were transferred to local authority control. The Bill deals with the ports of regional significance, including the ports at Drogheda, Dún Laoghaire, Galway, New Ross and Wicklow. This will bring about the dissolution of the existing port companies and transfer of all assets, liabilities and employees to the relevant local authorities.

Taking into consideration the Government's many reforms of local government, the oversight of these regional ports will now be the responsibility of local government. This devolution of responsibility will allow the ports to continue to develop, as required by the regional economy and in tandem with the regional community. The change in perspective will enrich and enhance their future development and better align the needs of local authorities. For some ports, the requirement that a separate statutory company should oversee and manage the port may no longer be appropriate.

As the Minister stated, as an island nation we rely on our ports for the majority of imports and exports. Our agricultural and pharmaceutical industries account for nearly €25 billion exports, so it is important that our ports are run in an efficient manner.He said in his speech that the Department of Transport, Tourism and Sport will provide funding for local authorities in respect of all five companies and that the results of this exercise will inform the model of transfer ultimately chosen for each port. As the Minister said, the Bill is flexible enough to allow for a continuation of the existing company and the transfer of the ministerial shareholding to the local authority, or the dissolution of the existing company and a physical transfer of all assets, liabilities and employees to the local authority. This is dealt with at sections 8 and 9, which I will address with later in my contribution.

In 2013, just over 800 vessels called to the five designated regional ports named in the Bill - in other words, about one every two days for each port. Four of these ports returned a profit in 2013, with the exception of Dún Laoghaire, although it technically no longer operates as a commercial goods transit port. Of the 26 ports in Ireland, only five will now not be in local authority control, that is, Dublin, Cork, Shannon Foynes, Rosslare, which involves Iarnród Éireann, and the port of Waterford, which is actually in County Kilkenny. I would remind the Minister of State at the Department of the Environment Community and Local Government, Deputy Coffey, that he is not getting it back.

When the Bill is passed and the amendments made, it is important that proper structures are put in place so the executive and members of the local authority can perform due diligence and that the new port authorities, together with the audited accounts, can appear before the local authority members, as the Minister has outlined. I welcome the fact the Minister said funding will now be in place to support the five ports because it is important they are not placed under financial strain as these transitions take place. In this regard, I would appreciate it if the Minister could tell the House how much funding is going to be put in place. It is important no financial burden is placed on the local authorities, although section 8 suggests a fairly straightforward transfer, if that is the model that is put in place.

Given the LEOs are in place in each local authority area, it is important the ports work closely with the LEOs to ensure continued economic growth and development in their areas. As they say, all politics is local, and the members of the local authority, in conjunction with the new ports boards, will know exactly what is necessary in order to achieve this.

Section 9 is perhaps the most controversial section, in that up to 49% of the shares may be privatised. In that regard, who would value the shareholdings of the ports? What rights would the new shareholders have in regard to properties of the ports? We must remember that Aer Lingus and Eircom were State companies that were privatised. There is a fear that if we go down this road, we might come to a point where we lose control of the ports.

I welcome the Bill. It is important that we continue to develop our ports. As an island nation, much of our exports and imports have to come through the ports and we do not yet have a tunnel to Europe or Britain, unless the Minister is going to make an announcement about that in the near future, given the economic upturn. Everything has to come in through the ports. It is important we do not keep the pressure too high on the main ports of Dublin, Cork and Shannon-Foynes and that the regions are also looked after. I welcome the Bill. I ask the Minister to give us more detail in regard to section 9, which is the most important section in that some areas may be privatised.