Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Yes, five ports handle 90%, much of which is entirely due to the kind of changes to which Senator Barrett referred, namely, the kind of changes that have taken place in the economy and in markets to which Ireland is exporting or from which it is importing. If one considers the 10% of tonnage that is not handled by the aforementioned top five ports, out of that 10%, 4% is now handled by the five remaining State commercial ports. As that figure of 4% constitutes a 45% decline on the position they held in 1998, one therefore is witnessing a real change in the nature of shipping throughout the world.

Furthermore, this change is not simply happening in respect of where tonnage is going to but also in how that tonnage is arriving at ports. One can now see tonnage arriving in vessels of a different kind that are larger and need a better capacity in ports to receive them. For example, in 2013 Irish ports handled 17% more tonnage than in 1998 but there was a reduction of 28% in the number of vessels entering those ports. This highlights the need for investment and how different ports will respond to this in different ways. This really is the context of the policy.

I will deal first with the amendments Senator Barrett has proposed. Without wishing to crudely summarise them, all the amendments focus on the need to recognise the commercial challenges ports face and consider the need, in the Senator's view, to put in place a cost-benefit analysis before any such transition would take place.It is for this very reason that a due diligence process will apply in the case of all ports that I recommend should go through the process of share ownership and come under the control of a local authority. My Department is funding this process which will consider all matters the ports in question must address as part of the transition to local authority ownership.

As to the rationale for moving into local authority ownership, different transition models will apply to different ports. I have proposed two different models, the first of which is the amalgamation model to which many Senators referred. Under this model, an entire port will transfer into the local authority structure. Under the second model, the port will remain a company, with its shares held by the local authority. The approach we are proposing is correct because it offers the ports and regions in which they are located the best opportunity to implement the type of integrated planning about which many Senators spoke, in particular, Senator O'Donovan.

On my visits to ports, I have noted that many require either national or regional infrastructural development. In the case of national ports, we have responded through our decisions on the national rail and road networks. For example, in the case of Shannon-Foynes Port I have prioritised the N69 in the new capital plan and in the case of Cork Port I have recognised the need for road works at Ringaskiddy and Dunkettle. We are addressing the issue of regional integration and the infrastructure the ports will need if they are to be secure in the face of the type of competitive pressures I outlined. All the work we have done in this area strongly indicates to me that the best way to address the issue is through the local authorities.

Senator Healy Eames raised a specific point concerning Galway Port. I have met members of the board of the port and I listened to their views. I assure the Senator that ports were given every opportunity to participate in the consultation process. The board of Galway Port expressed its views on the proposed policy to the Senator and to me and my Department and we listened to it. Notwithstanding the substantial dialogue that has taken place on this issue, I accept that individuals, stakeholders and boards may still take a different view from me on the issue.

On Senator Healy Eames's specific concern regarding TEN-T funding for Galway Port, the ability to access TEN-T funding is entirely independent of anything in the Bill. TEN-T funding operates in parallel with the national ports policy and the criteria for accessing it are set by the European Commission. The Commission examines the track record of a port to determine whether it ships a specific percentage of freight in the European Union by tonnage and value. Ports that reach a certain threshold will be able to access TEN-T funding, while those that do not will not be able to access this funding. Nothing in the ports policy or the Bill affects the ability of a port to apply for TEN-T funding because the criteria are set by the Commission. Many ports elsewhere in the European Union are integrated in local authority structures and are able to access TEN-T funding on the basis of their size.

In recognition of some of the points the Senator and other public representatives in County Galway have made to me, I do not propose to apply the provisions of the Bill to Galway Port for a period of up to 18 months. This is being done to give the board sufficient time and space to conclude the various processes under way at the port. If these processes conclude before the 18-month period elapses, either I or the next Minister will apply the legislation to Galway Port. The 18-month period will be provided to allow the matters and processes that are relevant to Galway Port to be completed.