Written answers

Tuesday, 20 June 2006

Department of Transport

Port Development

10:00 pm

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 331: To ask the Minister for Transport if his Department was consulted in advance of the decision of Shannon Foynes Port Company to seek tenders or expressions of interests in portions of Limerick Docks; if his Department expressed support for the decision; and if he will make a statement on the matter. [23804/06]

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 332: To ask the Minister for Transport if an impact study will be required by his Department before a decision to close Limerick Docks will be made; and if he will make a statement on the matter. [23805/06]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 334: To ask the Minister for Transport if his approval has been sought for a proposal from the Shannon Foynes Port Company to sell off Limerick Port; if his approval has been given for such a proposal; and if he will make a statement on the matter. [23868/06]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 335: To ask the Minister for Transport his views on whether the proposal to sell off the functioning and profitable port of Limerick is consistent with the objectives of national marine transport policy; and if he will make a statement on the matter. [23869/06]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 336: To ask the Minister for Transport his views on whether the proposal to sell off the functioning and profitable port of Limerick is consistent with the objectives of stated EU marine transport policy which is to encourage the transport of freight by shipping rather than road; and if he will make a statement on the matter. [23870/06]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 337: To ask the Minister for Transport the steps he intends to take to ensure the continued operation of Limerick Docks in view of its importance to existing users and to the Limerick area; and if he will make a statement on the matter. [23871/06]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 338: To ask the Minister for Transport the guidelines or procedures in place where a State owned port company, established under the Harbours Act 1996, proposes to dispose of plans, particularly with regard to ensuring openness and transparency in regard to any transaction and value for money for taxpayers; and if he will make a statement on the matter. [23873/06]

Photo of Pat GallagherPat Gallagher (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 331, 332, 334, 335, 336, 337 and 338 together.

Limerick docks are owned and operated by Shannon Foynes Port Company. The company 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 within 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.

The company manages six different port installations at various locations within the Shannon estuary and it projects significant increases in the volume of trade within the estuary over the coming years. The company has stated that investment in new modern facilities that can handle bigger ships is required to accommodate this growth in trade in the region. In line with the company's commercial mandate under the Harbours Act 1996, decisions regarding the use of the land within the port estate are primarily a matter for the port company and its board.

The company is required to comply with the Code of Practice for the Governance of State Bodies, which states that disposals of land must be by competitive tendering, other than in exceptional circumstances. The company's latest annual report for 2005 confirms compliance with the code for that year. These guidelines are in place to ensure that State companies carry out transactions with the maximum openness and transparency with regard to value for money for the taxpayer.

Accordingly, it was not necessary for me to give approval to decisions the company has taken thus far on Limerick docks, nor is an impact study required before a final decision is made. I am aware that on 15 March last Shannon Foynes Port Company announced that it was conducting a strategic review of its property portfolio, which the company states could result in a major expansion and upgrade of its facilities in the Shannon Estuary at a cost of over €100 million.

As part of this Strategic Review the company sought tenders for two sites within the Limerick docks, and has also sought expressions of interest regarding the entire docks. However, no decision has been taken with regard to the sale of lands or indeed the closing of the port facilities within the docks.

Whatever the conclusions of the strategic review, the company has said it will continue to work in partnership with other stakeholders in the region and that a comprehensive consultation will take place in advance of any final decision being made with respect to the future of Limerick docks.

The company has informed me that the port users have already been afforded regular opportunities to interact with the management and Board of Shannon Foynes Port Company since the inception of the Limerick Dockland Initiative. The company states that it has formally met with the Limerick Port Users Group on a number of occasions since 2003.

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. It also identifies as a key challenge the provision of additional port capacity to meet the demands of the growing economy.

A process is underway in my Department to examine future port capacity requirements at a national level, particularly for unitised trade. Seven project proposals to increase capacity have been received from the ports, including one from Shannon Foynes Port Company.

Shannon Foynes Port Company's plans are to increase both short sea and deep sea port capacity within the estuary, and in that sense such plans are consistent with both national and EU maritime transport policy.

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