Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

I thank the Senator for the opportunity to address the House on this matter. The national ports policy, published in March 2013, provides that the five designated ports of regional significance - Drogheda, Dún Laoghaire, Galway, New Ross and Wicklow - will be transferred to more appropriate local authority-led governance structures. These five ports of regional significance retain important roles as facilitators of their regional economies and, in some instances, as centres of marine-related amenity and tourism activities. However, the scale and nature of these activities were not adjudged such as to warrant continued central Government involvement. Dún Laoghaire Harbour, as a port of regional significance, is designated under the national ports policy for transfer to Dún Laoghaire-Rathdown County Council. As Senators will be aware, it was necessary to enact primary legislation, namely the Harbours Act 2015, to provide the necessary primary legislative framework to allow for the transfer of the ports of regional significance, including Dún Laoghaire Harbour Company, to local authority control. The relevant legislation was enacted in December 2015. The Act is not prescriptive in respect of the model for transfer for each port. That is deliberately done to facilitate each port because this involves more than Dún Laoghaire. Rather, the Act is designed to provide maximum legislative flexibility by providing for two possible models of transfer: one, retention of the existing company structure and transfer of the ministerial shareholding in the company to the local authority and two, dissolution of the existing company structure and transfer of all assets, liabilities and employees into local authority structures.

The intention was that, in the case of each port, the local authority and the port will agree the more appropriate model of transfer in respect of that port. The best model of transfer will be the one which finds broad consensus and agreement between the parties. This answers one of Senator Boyhan's questions, if there is disagreement between the port company and the local authority in relation to the model of transfer, then the final decision will be taken by the Minister. The Minister will not become involved in the day-to-day negotiations about this but if there is a disagreement, I - if I am in office - or someone else will make a decision on the matter.

The process of transferring governance of Dún Laoghaire Harbour Company to the council is ongoing and, as I said, the future governance and operational structures of the port are primarily matters for agreement between the council and the port company. In the case of each port transferred to a local authority, the decision on the model of transfer is informed by a due diligence carried out by the local authority, with funding support from my Department. I think that is €30,000. Dún Laoghaire Rathdown County Council has procured consultants to conduct the due diligence of the port company. While the procurement and management of the due diligence process is a matter for the council, I understand that the completion is imminent. I also understand that Dún Laoghaire Harbour Company and Dún Laoghaire-Rathdown County Council have established two transitional teams which are working on the practical issues associated with the transfer. Officials from my Department have also met with Dún Laoghaire Harbour Company and Dún Laoghaire-Rathdown County Council on a number of occasions to assist in the process. I have also met with many local groups. Deputy Boyd Barrett brought in a group from the local community to meet me a couple of weeks ago which was extremely useful and gave me an insight I had not had before into what many of the people on the ground and the users of the harbour felt.

As Senator Boyhan will be aware, Dún Laoghaire Harbour Company faces a challenging financial and operating environment as it moves from commercial shipping activities towards a different operating model which Is more focussed on marine leisure and marine-related tourism. The departure of the Stena Line from Dún Laoghaire Harbour adds to the future challenges for the company. The financial impact on the port is significant and it is very clear that the company faces a very different operating environment than it faced In the past. The company has been restructuring its business in order to remain on a sustainable financial footing and to enable the harbour to develop and operate on a commercial basis into the future.The company has been pursuing a twin strategy of developing alternative income streams from marine leisure and tourism-related business while also reducing its high cost base.

Finally, I can inform the Seanad that the transfer of the other ports of regional significance, including Drogheda, Galway and New Ross, to local authority control is progressing. I can also confirm that Wicklow Port Company transferred to Wicklow County Council on 30 August 2016 by a ministerial order made under the Harbours Act 2015.