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Dáil Éireann debate -
Wednesday, 27 Nov 1985

Vol. 362 No. 2

Free Ports Bill, 1985: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

When the debate was adjourned on the last occasion I was speaking about the experience of free ports in the UK and in other places also. The reality is that this development has not proved very successful in the UK. Of the six free ports there, only the one at Liverpool has had any measure of success. I trust that we do not follow the same formula as that followed in the UK because that formula appears to be too rigid and not achieving the desired objective.

I understand that an association of free ports were established recently in the UK but that already they are petitioning the Government there to make significant changes in the legislation, to take the emphasis off policing the ports and to provide for a more developmental role for them. We should learn from that.

However, there is evidence that in various parts of the world free ports are successful. In the Dominican Republic, for instance, where there is a very liberal free port policy, there are four free zones and between them they have attracted 130 American companies, employing 30,000 people. Therefore, it is possible for a free port to be a dynamic job creating centre of effort. While we must be conscious of the national interest primarily as opposed to the local interest, it should be remembered that the original proposal arose from the Government task force. The people involved in the task force recognised a particularly bad unemployment black spot and put forward a number of proposals including the free port proposal. The purpose was to give some stimulus and advantage to the Cork region because of the very serious unemployment problem there.

It can be said fairly, as in the words of the Cork City Manager this week, that while the haemorrhage in that regard has been stopped, the patient is not better. Nobody can be complacent about unemployment in the Cork region. I urge the Minister to look carefully at the experience in the United Kingdom which was not a success and at the experience in other countries where the concept has been more successful.

I recognise that in the EC context we are constrained by regulations and we cannot have a free for all in this free port scheme. I also recognise that we must look to the national interest and not drain activity from other areas, because that is not the purpose of the free port scheme. The real purpose is to generate new activity. In seeking to generate new industrial activity and job creation projects we will have to be very open about the kind of legislation we need and not be too restrictive about customs and other regulations.

This is an enabling Bill and the orders and regulations which are provided for, but which are not yet known in detail, will be very important. In his speech the Minister said that even now, before the Bill is passed, his officials are drafting orders and regulations. I hope that indicates a sense of urgency. He also mentioned the form of management of a free port in the concept of public or private or a combination of both. It appears the harbour commissioners have been given the green light to test the market, to seek proposals from private interests and the result of this exercise will be very interesting.

It is important to get the dynamism of the private sector involved with the expertise of the Cork Harbour Commissioners. The Minister is retaining the right to make this an entirely public or entirely private venture but since the harbour commissioners have such an important part to play in Ringaskiddy, they should get together with the private sector to develop a good free port scheme. At the end of the day the free port must become a positive dynamic stimulus to economic activity and the real test will be to see how soon the 30 acres will need to be extended. It is the hope of all Deputies from the region that the 30 acres will be too small at a very early date.

I want to refer to some of the comments made by Deputy Lyons. I did not intend to get into this area but as he raised these points I will reply to them. He broadened the debate to launch an attack on the lack of Government commitment to Cork. That flies in the face of the facts. There is no doubt that Cork has been an unemployment black spot for a number of years and we have suffered enormous job losses as a result of the closure of a number of major industries and the reduction of the labour force in many other industries. The fact that we are in difficulty is not the same as saying that the Government did nothing and do not care. I do not know what any Government could do to overcome this problem that this Government have not already tried to do. This week the city manager said that the haemorrhage of unemployment appears to have been stopped, that the patient is far from better but the condition has been stabilised.

A number of indicators suggest that we are beginning to overcome the problem. That is partly as a result of deliberate effort by the Government to put major investment and infrastructure into Cork. The city is being rebuilt — the quay walls, bridges and roads, and Ringaskiddy got a continuing investment programme from both Governments. Through the decentralisation of the small industries board, the IDA have been very dynamic, with a combination of IDA know how and local involvement, in starting up a number of small companies. More recently, there has been a new Government package which includes a designation of a major area in the centre of the city for special treatment, to encourage developers to get involved in urban renewal programmes, office and shopping developments and so on. That is a positive commitment.

The housing programme has been maintained at a high level as has the building of schools in and around the city particularly in the expanding areas. The Government have pushed ahead with the inquiry as regards the lower river crossing, which directly affects what will happen at Ringaskiddy both in relation to the free port and industrial development generally. The Government have shown considerable commitment to Irish Steel and the Minister, Deputy John Bruton, won important concessions which hopefully will enable Irish Steel to survive and to develop in a very difficult climate. The refinery is now viable. NET appear to have been turned round, even though they are facing a difficult pricing situation.

It would be untrue to accept the notion that Cork's troubles are the result of a lack of Government commitment. I believe the worst of the troubles are over. That is part of Government strategy and now this free port is coming on-stream. We should not exaggerate its importance because it is not the panacea which some people have claimed, but it is another link in a developing chain which will, I hope, restore and renew Cork.

As all Cork Deputies have done, I welcome the introduction of this legislation and plead with the Minister to recognise all the factors involved. This free port was intended to give an advantage to a disadvantaged area, disadvantaged in the sense of the levels of unemployment. The Minister should not lack courage to give this measure teeth, to give the free port a certain amount of freedom and to look at the British experience which has not worked. He should not tie us up as happened in the case of the British free ports.

Debate adjourned.
Sitting suspended at 1.30 p.m. and resumed at 2.30 p.m.
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