Written answers

Tuesday, 8 May 2018

Department of Transport, Tourism and Sport

Harbour Authorities Membership

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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422. To ask the Minister for Transport, Tourism and Sport the reason an anomaly exists in the election of worker directors of ports here (details supplied); and if he will make a statement on the matter. [19883/18]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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To strengthen the position of the Boards of Port Companies, the Harbours Act 2015 introduced changes in legislation in line with Government policy and to strengthen and improve corporate governance arrangements for company boards, including the introduction of 10-year limit on the period served by any director, including an employee director, of a port company.

The legislation also introduced certain stated skill sets for company directors.

Section 30(6) of the Harbours Act 1996, as substituted by section 39 of the Harbours Act 2015, provides that a person shall not serve as a director of a port company for a period that is longer than 10 years in total. This applies equally to all directors of port companies, including employee directors.

This provision is also in accordance with good corporate governance and practice as specified in 4.5 of the Code of Practice for the Governance of State Bodies 2016

In setting an overall limit on the period of directorships, section 30(6) gives more opportunities for other people to register their interest in serving on the boards of port companies. Elections have been held and all employee director positions in port companies are currently filled and no vacancies will arise for a number of years.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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423. To ask the Minister for Transport, Tourism and Sport his views on whether elected worker directors play an important role in the governance of tier one commercial port companies; and his further views on whether the number of elected worker directors on the boards of State-owned tier one port companies should be restored to the level set out in the Harbours Act 1996 from one to two in order to reflect the importance attached to the role of worker democracy in State-owned ports and to bring these entities into line with representative levels established in other successful commercial State companies. [19884/18]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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In line with the Ports Policy Statement 2005, the Harbours (Amendment) Act 2009 reduced the total number of directors serving on a port company board from 12 to 8. This was in recognition of the need for smaller, more focussed boards which were clearly aligned, on an individual member level, solely on the achievement of the commercial objectives and wellbeing of the port company.  In tandem with smaller, more focussed boards being put in place the allocation of one employee director on each board was more appropriate.

Section 30 of the Harbours Act 1996, as substituted by Section 39 of the Harbours Act 2015 maintains this provision and provides that an election of an employee director shall only be held where the average number of its employees is expected to exceed 30 in an accounting year.

Employee directors play an important role and make a valuable contribution to the governance of our tier one port companies. They provide a unique insight and add to the diverse skill sets required. In line with the legislation all employee director positions in port companies have currently been filled and no vacancies will arise for a number of years

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