Denis O'Donovan (Fianna Fail)
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My apologies to the Minister. I left the House to get a message, presuming there would be a vote but that did not happen. Bantry Harbour has a viable harbour board, which is self-sufficient in that it costs the State little or no money. I am a former member of the board. There has been a sizeable income for the harbour board for the past 15 or 20 years, primarily due to the input of funds from ConocoPhillips. There was a proposal from the Minister's predecessor, Noel Dempsey, to amalgamate Bantry Port with Cork. I resisted this because of my knowledge of Bantry Bay and the area. Former and current members of Cork Port inform me that they do not want the proposal to take place. Apart from Whiddy Island, there are many intricacies in Bantry. It is designated as a tourist hub, there is inshore fishing and fish farming in the bay. Garnish Island is nearby and people are living on Whiddy Ireland. The Bantry Harbour Board area comprises 80% of Bantry Bay, from Bere Island to Ardnagashel and across the bay.

Bantry Harbour board was set up because of an appalling oil spillage in the bay in 1974. The then Minister, Peter Barry, decided to set up a harbour board because of shipping and the oil reserves on Whiddy Ireland. The board has been run successfully and much money has been spent within the harbour board area by the existing board. The board provided a slipway on Whiddy Ireland, with support from the council and the Government, and a slipway on the mainland. For the first time in my life, there is a roll-on roll-off service onto the island, which can be used by an ambulance or a fire brigade. Having been in town on the night of the Whiddy Ireland disaster, I remember the appalling loss of life and that many mistakes were made. On the basis of providing funds or providing a proper service for the island, ConocoPhillips, shipping in the bay and tourism services, including yachting, there is a mixed grill of facilities in the bay.

Bantry Harbour is self-financing and should stand alone on its merits. When I was a member of the harbour board, we were presented with the option of being taken over by Cork County Council, going down the road of corporatisation - which was my preference - or being taken over by Cork Port. The views of the people in the area, by a large majority, and the near-unanimous view of the harbour board members over the past 20 years is that the least acceptable option is to succumb to Cork Port taking over the board. There may be good commercial reasons for it. I had a four and a half hour debate, which some may call filibustering, where I took issue with the former Minister, Noel Dempsey, about the port authority and a compromise was reached whereby there would be full and proper consultation with the inshore fishermen, the islanders, the tourism organisations and other facets of Bantry Bay before that should happen. Bantry Bay is a unique harbour and I am sure the Minister is aware of the situation. I am worried that the same catalyst for change that existed four years ago is still in the Department. The proposal to amalgamate harbours works in some cases and does not in others, but Bantry is unique. I urge the Minister to leave us as we are. The notion of being taken over by Cork Port is the least acceptable option and one that will be strongly resisted, even by Deputies and councillors of the Government parties.

Leo Varadkar (Dublin West, Fine Gael)
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The existing policy on regional harbours is as published in the 2005 ports policy statement, namely, that the continued operation of harbours under the Harbours Act 1946 is unsustainable on the grounds of good governance. It proposed that harbours would best achieve their potential through a transfer to local authority ownership or, in the case where harbours had significant commercial traffic; that 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 past number of years to progress the transfers. The transfer of harbours is consistent with the objectives of a reduction in the number of State agencies, 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 Harbours Act 1946.

Some 12 out of a total of 13 harbours have now transferred. In the past few months, Fenit Harbour transferred to Kerry County Council while Baltimore, Kinsale and Arklow harbours transferred to local authorities on 1 January 2012. Bantry Bay Harbour 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 ConocoPhillips oil facilities on Whiddy Island are privately owned. Aquaculture, fishing and tourism are prevalent in the harbour and a small number of cruise liners also visit the harbour each year. The KPMG review of regional ports and harbours published in 1999 first recommended that the harbour authority merge with the Port of Cork. Amalgamation with Cork 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 and pollution etc. Provision was included in the Harbours (Amendment) Act 2009 to allow the transfer of Bantry Harbour to the Port of Cork. The Act provides that public consultation must be completed before the transfer can take place and outlines how that consultation should take place in section 18(2)(d).

Bantry Bay Harbour Commissioners is the responsible authority under the Harbours Act 1946 for the control, operation and development of Bantry Harbour. Its main role relates to jurisdiction over the waters, for example, responsibility for safety, navigation and pilotage etc.. The operation of large oil tankers, bulk carriers and cruise liners in and out of the bay requires specific expertise. The Port of Cork company currently provides a harbourmaster service on a contract basis to assist in this regard.

Work commenced earlier this year to examine the requirements to transfer the harbour to the Port of Cork. The process is complex and will include meetings with the Port of Cork and the harbour commissioners, due diligence on Bantry Harbour and an examination of a range of issues including remedial works, foreshore issues, staff, legal cases and financial accounts, to name but a few. A meeting was held recently between my Department and the Port of Cork, which is positive about the transfer and willing to work with the Department and the harbour towards this objective. Cork already has a very good professional relationship with ConocoPhillips through the oil refinery in Cork Harbour. The Port of Cork also has a contractual arrangement with Bantry to provide professional expertise and a harbourmaster to bring in large oil tankers and cruise liners into the bay. This is an absolute requirement by the company to operate their business in Whiddy to help mitigate the risks of maritime accidents and environmental damage. A general discussion also took place between my Department and the chairman of the harbour commissioners on a range of issues that will have to be dealt with before any transfer can take place. It is likely that the harbour commissioners will raise a number of issues relating to the proposed transfer and my Department will work closely with the harbour commissioners and with the Port of Cork to address any concerns raised. I will pay close attention to local views on the matter and engage with all stakeholders. There are no proposals to amend the jurisdiction of the Bantry Bay Harbour Commissioners geographical area as it stands.

Denis O'Donovan (Fianna Fail)
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I thank the Minister for his frank response. I am aware of the KPMG report, one of eight dealing with the future of Bantry Harbour. The most recent report was carried out by Ray Burke - not the politician - and suggested Bantry might be better served in a standalone situation. When the gun is put to the Minister's head on the point of amalgamation, I hope he will take into consideration the diverse local concerns. Someone from the Port of Cork authority, whose name I will not reveal, told me not so long ago that it is fine to take over responsibility for ConocoPhillips and the operation of Whiddy Ireland, which may increase its capacity and revenue and would be a win-win situation but the takeover would also involve fish farming and its problems in the bay, tourism, Whiddy Island, liners and other issues. It is a complex area and the Port of Cork will walk away from a takeover unless it is forced to act because the takeover would cause more problems than the Port of Cork would like. It is not as simple as taking over the Whiddy Ireland project and the ConocoPhillips project, which is important to Bantry, the south of Ireland and the State. I thank the Minister for his fulsome response. I had the same arguments with the previous Minister.

Leo Varadkar (Dublin West, Fine Gael)
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I thank the Senator for raising the issue and he can be assured I will listen to local views. No rushed decision will be made and the provisions in the legislation on public consultation must be followed. The issue arises because this is the last of 13 harbours and the only one operating under the Harbours Act 1946, which must be repealed sooner rather than later. The Senator mentioned that Bantry is self-financing, which is true in regard to operating costs, but it requires capital from the State, which will not be forthcoming forever. While corporatisation as an independent port company could be considered as an alternative to a merger with the Port of Cork, questions must be answered in that regard. We have a number of port companies that are not doing very well, one of which is Dundalk, which failed last year. Corporatisation brings costs and obligations that may be difficult. It is not right to rule out corporatisation as an option but there are significant risks in going down that road as an alternative.