Bernard Durkan (Kildare North, Fine Gael)
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Question 190: To ask the Minister for Communications, Marine and Natural Resources his plans for the development of ports and harbours; the likely expenditure of such ventures in 2005 and forthcoming years; and if he will make a statement on the matter. [14804/05]

Pat Gallagher (Donegal South West, Fianna Fail)
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The ports policy statement, published in January 2005, sets out Government policy in relation to plans for the development of ports and harbours. It is available to view on the Department's website.

The ports policy statement aims to better equip the port sector and its stakeholders to meet national and regional capacity and service needs through: better transport policy co-ordination; clearer and more focused commercial mandates for the ports and their boards; reform of the structure of port boards; encouragement of private sector investment and involvement; sanction for the use of non-core assets to fund new port development but not to mask inefficiencies; encouragement of healthy competitive conditions within and between ports; better consultation and dispute resolution between port companies and users through appropriate information sharing and arbitration mechanisms; and encouragement of mergers where a business case exists.

Ireland, as an island, is dependent on sea-borne trade and the economic significance and importance of our ports to the prosperity of the country is self-evident. Given our small, open economy, Ireland's international competitiveness is central to overall economic performance.

Our ports are vital gateways for commercial freight and sea passengers. This is highlighted by the fact that nine of the ten commercial State port companies are located in areas identified as gateways in the national spatial strategy. Almost all of Ireland's overseas trade goes by sea, underlining the commercial significance of ports and their strategic importance. Most of the ports are State-owned companies with statutory commercial mandates and operational criteria. The port companies are required to take all proper measures for the management, control, operation and development of their harbours and are required to conduct their business at all times in a cost-effective and efficient manner. This has led to a strong independence of action and a focused commercial mindset.

The Government expects that the port companies, as commercial entities, should be capable of funding their operations and infrastructure requirements without relying on Exchequer support. The port companies are, therefore, encouraged to seek financial assistance from other avenues such as private sector investment within ports.

One of the key challenges ahead is the timely provision of adequate in-time port capacity. The internal resources of our commercial ports are not sufficient in general to fund large-scale infrastructure projects. This is a significant challenge in view of the need for additional capacity at our ports over the coming years, particularly to cater for the growth in unitised trade. The Department is initially consulting with the commercial ports concerned to determine their view of port capacity and how they intend to deal with the projected capacity requirement.

The Department is interested in key projects identified by the commercial ports as essential to deal with anticipated capacity deficiencies to 2014 and beyond, and whether the ports see these being funded from their own resources or in partnership with the private sector. The policy framework encourages all port sector stakeholders to address capacity provision. The State will support capacity provision, as residual financier, but only if proven essential to progress identified high quality self-sustaining projects.

As indicated in the policy statement, it is proposed that the regional harbours still operating under the Harbours Act 1946 will be transferred to local authority or port company control.

Officials from the Departments of Communications, Marine and Natural Resources and the Environment, Heritage and Local Government are at present considering the modalities for the transfer of the regional harbours to local authority ownership.

Pending the above transfers the Department spent a total of €1.25 million in 2004 on essential works at regional harbours to protect the public and the fabric of these harbours. Consideration is being given to the need for a similar programme in 2005.