Seanad debates

Tuesday, 22 October 2019

Nithe i dtosach suíonna - Commencement Matters

Harbour Authorities

2:30 pm

Photo of Victor BoyhanVictor Boyhan (Independent)
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I welcome the Minister of State. It may be peculiar for those watching to see us talking to the Minister of State with responsibility for local government about Dún Laoghaire Harbour, which is one of the finest harbours in Europe and the world. It is renowned for its historic nature architectural beauty. With that, however, comes major responsibility, including financial responsibility. A number of heated responses in the House from the Minister for Transport, Tourism and Sport, Deputy Ross, regarding this matter have shown that there is dissatisfaction in the community in the Dún Laoghaire-Rathdown County Council area regarding ongoing obligations in respect of the maintenance and financial requirements needed to protect this national treasure. It is unfair, and considered unfair, that that should be the case. I want to agree with that sentiment.

At the outset, I must state that I am a former director of the harbour company, having served in that position for ten years. I left the post many years ago but I am intimately familiar with the workings of the company. I refer to its finances, corporate governance and attendant issues. Many Ministers with responsibility for transport have dealt with this issue, including the Taoiseach, Deputy Varadkar, the Minister for Finance, Deputy Donohoe and the Minister, Deputy Ross. Those are all influential people in politics and in this Government. They are also aware of the financial liabilities and difficulties.

I do not want to open up the issue of the governance of the company today. I want to focus on how we can secure from the Government some financial support and assistance for Dún Laoghaire-Rathdown County Council, its executive and elected members, to protect the future of this harbour. Financial liabilities are part of this issue. It is suggested that total liabilities might be some €30 million, but it is hard to quantify. Some provision, however, should be given. It is not appropriate that a State agency should saddle another arm of the State, in this case Dún Laoghaire-Rathdown County Council, with a financial liability of this significance.

I do not want to look back, I want to look forward. Responsibility for this particular area now falls on the desk of the Minister of State. Can he give an undertaking that he will secure an incremental transitional fund for Dún Laoghaire-Rathdown over a period of between three and five years? I seek assurance about the status of the trading accounts for the Dún Laoghaire Harbour Company for the last year or two. There is a statutory obligation in law, and the Houses of the Oireachtas enacted the legislation, that provides for the audited accounts of the company to be laid before the Houses of the Oireachtas. The time is well lapsed and yet we still have not seen the accounts. I ask the Minister of State to enlighten me on the following. Where are the accounts? What is their status? Is he aware of any complications or reservations by anybody, including former directors or financial people who work for the company? Have they any difficult signing off on them? The Minister of State might share that information with us if he has it. More importantly, when can we expect the accounts to be laid before the Houses of the Oireachtas? Can he give us and the local authority, its members and executive comfort by saying what he might do or might be able to do to provide financial support to them? There may be elements of heritage and conservation and, therefore, the Minister for Culture, Heritage and the Gaeltacht, Deputy Madigan, may be able to provide funding. A number of State agencies may be able to provide funding for this particular issue.

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
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I thank Senator Boyhan for raising this important issue. I am delighted to have the opportunity to address the House on the issue of Dún Laoghaire harbour and its future development. He is correct to say that we should focus on the future at this stage.

The Senator referred to the document entitled National Ports Policy 2013 when he mentioned the time the Taoiseach was the Minister for Transport. The policy provides for the transfer of certain ports to the relevant local authorities that they are located in and sets out the arrangements for giving effect to this. In that context, the Dún Laoghaire Harbour Company transferred to the Dún Laoghaire-Rathdown County Council on 3 October 2018, in accordance with Part 3 of the Harbours Act 2015, which provides, inter alia, for the dissolution of the port company and the transfer of its assets, liabilities and rights to the council.

The Harbours Act 2015 requires that the council presents final accounts for the former harbour company, which the Senator outlined, to the Minister for Housing, Planning and Local Government within six months of the date of dissolution. Again, as the Senator pointed out, that time has passed. It has taken longer than stipulated to finalise the accounts for the period 1 January 2017 to 2 October 2018 due to a technical legal issue regarding audit and sign-off of the accounts. I understand that the council will present the accounts to me before the end of the year. I will then lay the accounts before the Houses of the Oireachtas.

The Department has a prudential role with regard to the financial integrity of all local authorities and to ensure that local authorities' finances, as far as is practicable, are on a sustainable footing. In that regard, it is my Department's position that in the case of all port transfers, the relevant local authority should not be unduly encumbered or exposed to financial risk by the effective transfer of a commercial body to its control. As I said at the time, and reiterate here, there can be no question of all the costs falling on the local authority in question, which is Dún Laoghaire-Rathdown County Council.

I understand that due diligence undertaken by the council prior to the transfer had estimated that remedial works costing in excess of €33 million could be required if the port was to be brought to a standard to accommodate commercial shipping. However, a smaller infrastructural deficit of €10 million applies in the event that upgrading and maintenance for just recreational and amenity use needed to be addressed over a number of years.

It should be noted that Dún Laoghaire harbour is a substantial strategic asset and amenity, and a local and national one as pointed out by the Senator, which, notwithstanding its ongoing expenditure requirements, also generates income from a number of sources that can be directed towards investment needs. The Senators is aware of the latter from his own time as a member of the county council.

Dún Laoghaire-Rathdown County Council is currently working on an economic plan for the harbour. While central government responsibility for ports policy and associated issues remains a matter for my colleague, the Minister for Transport, Tourism and Sport, I am anxious to see local authorities realising the potential of their assets, on a sustainable basis, in the context of Project Ireland 2040. In that context, I look forward to seeing proposals from the council on the future development of this key strategic asset. The Senator is right to point out that there will be other Departments under the aegis of Project Ireland 2040 from which funding can be sourced. First, the final accounts must be presented. Then it is a matter for the council to bring forward its proposals on regeneration works for necessary regeneration and also for further economic development of the port and the port's lands into the future.

Photo of Victor BoyhanVictor Boyhan (Independent)
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I thank the Minister of State. I must say three things. It is extremely disappointing, despite numerous promises, new dates and deadlines constantly being pushed out, that we are being told there is a difficulty or glitch in the signing off of public accounts for public money by a company whose directors were appointed by the Government. It is very serious. This is about corporate governance, accountability and the public finances. It is exceptionally disappointing, but the Minister of State has nothing to do with what has been stated. I certainly will be pressing in respect of this matter outside the House in the coming days. I will seek further advice because this is an urgent matter.

It is unacceptable that the local authority, which had no hand, act or part in the finances of this company up to its dissolution, now finds itself in a situation where the accounts of a company which it had to take on under legislation have not been dealt with. I will pursue that. In the meantime I ask the Minister of State to consider meeting the executive of the council to tease out what is happening here. That is his call, but I ask him to consider it. In addition, bear in mind that there is a rates issue and a budget issue. This issue will have a huge impact on the rates that will be levied on business in Dún Laoghaire because the chief executive has to be prudent and make provision for bad debt.

There are two issues. It is unacceptable that we cannot see the accounts that were to be laid before this House months ago. It is a serious offence and I ask the Minister of State to look into what sanctions there are or whether we are open to any sanctions. I do not know. I am not asking a smart question, but are there any sanctions?

Photo of Diarmuid WilsonDiarmuid Wilson (Fianna Fail)
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I thank the Senator.

Photo of Victor BoyhanVictor Boyhan (Independent)
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Within days, I will be upping the gear with regard to public accountability for public funds in respect of Dún Laoghaire Harbour Company.

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
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To reiterate, I have no problem with meeting the executive or councillors about the proposals they have to draw down funding to carry out the necessary works in Dún Laoghaire. I presume the Senator was a member of the board when he was a councillor.

Photo of Victor BoyhanVictor Boyhan (Independent)
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I was not.

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
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Did the council have any nominees to the board?

Photo of Victor BoyhanVictor Boyhan (Independent)
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The council had no nominees in the latter years, but it did originally.

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
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I understand the issue to the effect that it is almost 12 months since the order was passed. The legislation refers to a six-month timeline. The council would be happy if it was finalised before the end of the year. With regard to ensuring that the accounts are laid before the Houses within the next number of weeks, it is perfectly legitimate for the Senator to ask that question. I will look into whether there is a sanction available and revert directly to the Senator.