Seanad debates

Wednesday, 26 October 2016

Commencement Matters

Harbours and Piers

10:30 am

Photo of Victor BoyhanVictor Boyhan (Independent)
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I welcome the Minister for Transport, Tourism and Sport, Deputy Ross, to the Seanad. I know that he is no stranger to Dún Laoghaire Harbour. He was there recently when the Irish Olympian Annalise Murphy returned to Dún Laoghaire, which was a great and joyous celebration for the town and the nation.

I am concerned about the future corporate governance of Dún Laoghaire-Rathdown County Council because it has been debated for a hell of a long time and there seems to be very little progress and there may be a very good reason why that is the case but I want to hear why from the Minister. There is 250 acres of water in Dún Laoghaire Harbour making it an amazing international maritime resource. It is a massive piece of real estate operated and run on behalf of the state by Dún Laoghaire Harbour Company, of which I was a director for two terms, or ten years. There was a suggestion as a result of the national ports policy that Dún Laoghaire among other ports that have regional significance would be transferred to the local authority, Dún Laoghaire Rathdown County Council. There is huge uncertainty about the future of Dún Laoghaire Harbour, its direction, long-term plans and governance. That is why it is important to hear from the Minister what are the plan and vision. A due diligence was commissioned and co-funded by the Department of Transport, Tourism and Sport. I do not know where that is today. Who owns that due diligence report? When will it be published? When will it be put into the public domain? When will it be given to the county council, the elected representatives of the people in Dún Laoghaire?

I cannot comment on the uncertainties although I understand this week An Bord Pleanála is due to decide on a cruise terminal, a very controversial piece of infrastructure before the board. We must await the outcome of that. That is another important facet in the complexity of Dún Laoghaire Harbour's future. There has been an acting harbour master for several years. The legislation clearly sets down the requirements of a harbour master. That needs to be considered. There are huge issues regarding the pensions fund, which I will not go into except to say that the Minister needs to be aware of them. I am sure he already is. There are also human resource, legal and real estate issues. There are several vacancies on the board for which the Minister is responsible and has the power to fill. Does he intend to do this in advance of or after the transfer? Would the Minister consider advertising and seeking expressions of interest from stakeholders and the public to be considered? It is important to have people of calibre but also with skills in maritime, leisure, finance and legal matters to bring an extra layer of support to the harbour company, whatever its governance and whatever plans the Minister has for it.

On another occasion, I would like to meet the Minister, who comes from a business background, to discuss the dividend. Dún Laoghaire Harbour Company, like all State companies, was supposed to issue a dividend. It is my understanding that this company has never issued a dividend to the state. Is that acceptable for a company that is supposed to be successful, commercial and viable? What is the situation and status of that dividend? I would like to see a copy of any dividends issued by this company. All is not plain sailing at Dún Laoghaire Harbour and I think the Minister knows that. We need answers. It would be great to get clarification from the Minister about how he plans to transfer the corporate governance of this harbour company from his Department to the council, or not and if there remains an impasse and a dispute as to the views of the harbour company versus the views of the local authority, how will he address that and how will he make that decision?

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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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.

Photo of Paul CoghlanPaul Coghlan (Fine Gael)
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Does the Senator wish to put a brief supplementary question?

Photo of Victor BoyhanVictor Boyhan (Independent)
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I want to put on the record that my name is spelt "Boyhan". The Minister might bring that to the attention of his secretarial assistant. It is not spelt "Boylan".

I am none the wiser. Last week, I took the trouble to look at several responses from the current Minister and previous Ministers, including Deputies Paschal Donohoe and Leo Varadkar. It is always the same old response. The line is that it is about to happen and that due diligence is about to be completed. The fact is we are none the wiser. None of this is new.

Currently, the company is under the responsibility of the Minister for Transport, Tourism and Sport. There has been no transfer. A range of issues arise. I am aware of the Minister's meeting with Deputy Boyd Barrett and a number of my colleagues in Dún Laoghaire. I am aware of various items of correspondence as well.

I shared some information on the matter in the House previously and I will say what I have already said again. There are legal issues, human resources issues and pension issues in respect of this company. I furnished some information to the Department of Transport, Tourism and Sport last week and I received a letter from the Department in reply. Indeed, the Minister's signature may be on the letter, although I am not 100% certain - I will check it when I go downstairs. In any event, I furnished information in respect of two High Court proceedings in respect of this company and this was acknowledged by the Department. All is not well in this company. All is not sailing well out there.

I appeal to the Minister to look at all the current issues in respect of the governance of the company that are under his watch. I will write to the Minister in this regard. We are none the wiser. I would appreciate if the Minister would keep the House informed. I have spoken to a number of my colleagues and, if necessary, I will arrange for a number of parliamentary questions to be put to the Minister in the Dáil next week.

Photo of Paul CoghlanPaul Coghlan (Fine Gael)
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We are well into injury time.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I am sorry about the Senator's sensitivities over the spelling of his name. I know that is important to him. It was a misprint, which can happen from time to time. The name is spelt correctly at the top of the document before me. Elsewhere in the document there are references to the Senator as "Boylan", but it is not an insult or a matter of great importance.

I am well aware of the difficulties attached to this. Some of the questions raised by Senator Boyhan are already well catered for in the public arena. On the question of board vacancies, it was made absolutely clear by my predecessor that he had no intention of appointing any new members to the board while this transfer was ongoing. Senator Boyhan would know that if he had done the slightest bit of research. I have no intention of appointing any new members to the board while that is going on either. There has to be a quorum. That is important and I may have to make appointments to fulfil that requirement, but otherwise I am not going to appoint members to the board while it is a state of transition. This is the same position as my predecessor.

The Senator referred to the cruise terminal. I am not going to interfere in any way with the planning process.

Photo of Victor BoyhanVictor Boyhan (Independent)
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I am not asking the Minister to interfere.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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Senator Boyhan brought it up.

Photo of Victor BoyhanVictor Boyhan (Independent)
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I did not ask the Minister to interfere with it.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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Senator Boyhan can be absolutely certain that this is under constant review in my Department. It is a difficult problem. Senator Boyhan may not be aware of it, but this problem has caused extraordinary difficulties in the local area. This is something which I have to listen to as well and it is something of which am acutely conscious. That is why I agreed to meet representatives of the local area in a situation which is controversial. I will continue to do so. I will continue to be aware of those sensitivities as well as those of officialdom.