Ann Phelan (Carlow-Kilkenny, Labour)
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Question 1045: To ask the Minister for Transport, Tourism and Sport the reason the vacancy on New Ross Harbour Board created by the resignation of this Deputy has not been filled despite the fact that Kilkenny County Council nominated a councillor (details supplied) to fill this vacancy; and if he will make a statement on the matter. [22988/11]

Leo Varadkar (Dublin West, Fine Gael)
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As the Deputy is aware, under the Harbours Act 1996 once she was elected to the Dáil she could no longer serve as a director of New Ross Port Company.

In April this year, Kilkenny County Council sought to nominate another Councillor to fill the vacancy on the board. I responded to the Council in May explaining that, due to the changes introduced in the Harbours (Amendment) Act 2009, the Council no longer has the power to nominate directors to the board. These changes were made for a number of reasons, but primarily in order to eliminate any potential conflict of interest between the very different roles of a State company director and a local councillor, particularly when it comes to zoning and planning matters and the conflict that may arise when the interests of the port company are not aligned with the desires and wishes of the community who elected the councillors concerned. A board member's primary duty must always be to the company and to no other interest. This, of course, does not preclude me from appointing councillors where they have specific skills which are needed on the board, and I am satisfied that any appointee would be able to put the interests of the company ahead of any other concern.

The Deputy will also be aware from her time as a director of the company that New Ross Port has suffered declining traffic and turnover for a number of years. The Company has sought to address its difficulties through a number of measures. The board has played its part in reducing costs. A number of years ago the board proposed that the number of directors be reduced to six and it also voluntarily reduced the directors' fees. The board currently has seven directors, which is considered adequate for the present. Even at that, the board has more members than the company has employees. I also indicated that I have no immediate plans to fill the vacancy, but will keep the matter under consideration.