Róisín Shortall (Dublin North West, Labour)
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Question 328: To ask the Minister for Transport if his attention has been drawn to the various asset or property transactions entered into by Shannon Foynes Port Company since its establishment, particularly the sale of a warehouse (details supplied) and lands; if these meet with established guidelines for State bodies either disposing of or acquiring assets; if his attention has further been drawn to recent statements by the chief executive officer of the Shannon Foynes Port Company in relation to that company's intention to seek developer interest in acquiring their strategically located land in and adjacent to Limerick docks; and his views on whether this seeking of developer interest results in potential conflict of interest; and if he will make a statement on the matter. [18506/06]

Pat Gallagher (Donegal South West, Fianna Fail)
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Shannon Foynes port is a State-owned company established under the Harbours Act 1996. The Act provides that the principal objects of the company include the provision of such facilities, services and lands in its harbour for ships, goods and passengers, as it considers necessary. The company is required to take all proper measures for the management, control, operation and development of its harbour. Decisions regarding the use of the land within the port estate are primarily a matter for the port company.

Regarding compliance with established Government guidelines, the company is required to confirm on an annual basis that it is fully compliant with the Code of Practice for the Governance of State Bodies. The company's latest annual report for 2005 confirms compliance for that year. With regard to the former Koala Warehouse property referred to in the Deputy's question, in June 2004 Shannon Foynes Port Company informed my Department that the company proposed to sell this site as part of a composite transaction that offered a number of benefits to the company.

Turning to more recent events, on 15 March last Shannon Foynes Port Company announced that it is conducting a strategic review of its property portfolio, which could result in a major expansion and upgrade of its facilities in the Shannon Estuary at a cost of over €100 million. The company has recently sought expressions of interest with regard to the Limerick Docklands and is seeking tenders for two sites within the docklands.

The Government's Ports Policy Statement from January 2005 outlines that the disposal of non-core assets is a potential source of funding for new port developments. Any such new developments will, of course, be subject to rigorous capital appraisal in accordance with Department of Finance guidelines.

There are six different port installations in the Shannon Estuary that fall within the jurisdiction of Shannon Foynes Port Company. The company projects significant increases in its volume of trade over the coming years and states that investment in new modern facilities that can handle bigger ships is required to accommodate this growth in trade. Whatever the conclusions of the strategic review, the company has said it will continue to work in partnership with other stakeholders in the region.

As is required by the Code of Practice, Shannon Foynes Port Company has a Code of Business Conduct for Directors and Employees, which covers procedures with regard to any potential conflicts of interest. If any such potential conflicts arise in relation to the seeking of developer interest, this would be a matter for the company in the first instance.