I move that the Bill be now read a Second Time. This Bill is described in its Long Title as an—
"Act to make further and better provision in relation to the membership of certain harbour authorities and to the management, control, operation and development of their harbours,"
and to provide for certain other matters connected therewith. I presume that it is not necessary to attempt to convince the Dáil of the necessity for, or the importance of, this Bill. I should think that, in so far as the principle of the measure is concerned, it can be properly described as non-controversial. Neither is it necessary to deal at any length with the details of its provisions because the explanatory memorandum which was circulated to Deputies with the Bill gave in general non-legal terms a full account of what the Bill proposes to accomplish. Ports and harbours are an integral factor in the transport economy of the country. They provide the links between the land and sea routes for external trade, and, to a smaller degree, for internal coastwise communications.
The development of industry and commerce may influence the character of the facilities required in the case of particular harbours or may alter their relative importance, but it does not lessen the importance of the harbour facilities to the State as a whole. Good transport services are vital to the expansion of industry and commerce and harbours provide an essential feature of transport in an island country such as ours. Previous legislation related to internal transport was based on the principle that undue competition in transport is not for the ultimate good and that the public interest is served more efficiently and progressively by the concentration of transport facilities in large units. That principle has not been accepted by the Government in relation to harbour facilities. I know that some argument has been made, possibly will be attempted during the course of the debate, in support of the view that the concentration of harbour facilities at a few large ports would suffice to meet the requirements of this country. That point of view was considered by the Government when this legislation was being prepared, but it was not accepted. We consider that a false analogy can be made between the concentration of harbour facilities and the principles upon which legislation related to internal transport facilities was based. We regard harbours as being more akin to roads than to commercial transport businesses, and on that account it is our view that centralisation such as has been suggested in some quarters is not a means of securing greater efficiency. Other methods must, accordingly, be found to ensure the most efficient operation and development of this most essential part of our transport organisation.
The history of harbours in the country shows that, prior to 1922, a general state of confusion and mismanagement existed. It was early recognised after the establishment of the Dáil that something would have to be done about it and in 1926, by resolutions of both Houses of the Oireachtas, the Ports and Harbours Tribunal was appointed to inquire into the position of the several ports and harbours. That tribunal undertook its work with great thoroughness and produced an elaborate and informative report in 1930. That report is available to Deputies and has, no doubt, been studied by them. The tribunal found that the administrative control of our harbours was governed by a large and unco-ordinated volume of legislation, both general legislation and local legislation, and that a wide diversity existed as between one body and another in relation to their character, in relation to the extent of their powers and functions as well as in their constitution and membership; there was great divergence in methods of administration and there were many instances of uneconomic and inefficient management. The tribunal drew attention to the fact that no attempt had been made at any time to co-ordinate the activities of the various ports, to assist and supervise their operation and development or to protect the interests of the users of the ports. They found that proposals for legislation and for schemes of development had, in almost every instance, been purely local in their conception.
The general conclusions reached by the tribunal were incorporated in two recommendations. Their report contains a large number of recommendations, but the two main recommendations which establish the need for new legislation were, first, that the provisions of the various general Acts relating to harbours should be replaced by a general consolidating Act embodying in modern form such of the existing statutory provisions as experience has shown to be valuable and desirable with such other provisions as may be necessary; and, secondly, that the Department of Industry and Commerce be given the general oversight of harbour administration and be placed as regards harbours in much the same position as the Department of Local Government and Public Health occupies in relation to local authorities.
The tribunal further proposed the adoption of a fresh policy, based upon their suggestions and recommendations, to the end that the various harbour undertakings might, under wise guidance, be brought to the highest level of efficiency in the interests of the trade and commerce of the State.
This Bill, as has been made clear by the explanatory memorandum circulated, is based upon the recommendations of the tribunal. It was prepared before the war and was ready for introduction in 1940. Owing to the abnormal circumstances affecting the ports and harbours of the country which then existed, its introduction was postponed. It will be appreciated by Deputies that the preparation of the measure entailed a very great deal of work owing to the highly complex nature of the existing harbour legislation. Practically all the tribunal's main recommendations have been accepted and are embodied in the measure.
The Bill applies to the four principal harbours of Dublin, Cork, Limerick and Waterford and to 21 other specified harbours. Power is, however, given to the Minister for Industry and Commerce under the Bill to add a harbour to the number to which the Bill relates. All the specified harbours are covered by the tribunal's report with the exception of Buncrana, which has been added to the list of harbours with which the Bill deals on account of the considerable expenditure incurred in the development of that harbour since the tribunal reported in 1930. The Bill does not apply to the State harbours administered by the Office of Public Works or to harbours which are owned and managed by county councils or by railway companies. The provisions apply equally to all the specified harbours with the exception that the harbour authorities for the four principal harbours are comprised of a larger membership and each of them is required by the provision in the measure to appoint a general manager and secretary and to promote a superannuation scheme for the benefit of officers and for established staff. The provisions of the Bill which relate to the reconstitution of harbour authorities, to the general procedure of harbour authorities, and to the removal from office of members of harbour authorities for stated reasons will come into operation on a date in an appointed year which need not be the same for each authority. All the other provisions of the Bill will take effect from the date on which the measure is enacted.
I do not know that it is necessary to argue at any length in support of the case for the reconstitution of harbour authorities. At present many of the existing harbour authorities are constituted in a manner which is not only obsolete but inconsistent with democratic principles. There is considerable diversity and each harbour board is constituted on a basis peculiar to itself. For instance, in Cork the harbour commissioners are largely composed of members appointed by the corporation. At Foynes, the commissioners co-opt their successors. At certain large harbours the provisions relating to the appointment of commissioners have become obsolete and impracticable and vacancies exist which cannot be filled under the existing legislation. The number of members varies from as few as seven in one case to as many as 37 in another. The system of election of harbour boards is, as a matter of fact, practically one of co-option and of nomination of representatives by those firms and shipping companies which were actively interested as users of the harbours. In many cases the harbour undertakings have come to be regarded as close corporations. The principle of election is not followed generally. For example, there were no contested elections at Dublin and Sligo for many years before the emergency. At Dundalk, a contested election is exceptional. Out of an electorate of 500, only eight persons exercised the franchise at an election held in 1944.
It can be fairly stated that there has been a lack of interest in matters affecting harbours on the part of the community. The fact that the public are not directly rated or taxed for the upkeep of the harbours may account to some extent for that lack of interest. The average citizen is aware of the existence and of the functions of local bodies because he uses the public services which they provide and because he has to make a financial contribution towards their provision. Harbour undertakings are maintained by charges levied on goods and shipping. Though these charges are paid in the first instance by the carrying companies and the merchants, they must ultimately be recovered from the producer and from the consumer as freight charges or in the price of the commodity when offered for sale. The public, although they pay indirectly for the upkeep of the harbours, fail to realise their liability to the full extent or their interest in efficient and economical management.
The general scheme which is now proposed recognises that the management of ports and harbours is largely a matter for local bodies. It is intended that the new harbour authorities should be representative of the class of persons and of interests directly concerned in the use of the undertakings. It is desirable that each authority should comprise a reasonably compact membership to facilitate the expeditious and efficient discharge of business and, at the same time, not be too unwieldy. It is proposed, therefore, in the Bill that the harbour authorities, when reconstituted, will have the following membership. In the case of the four main harbours, Dublin, Cork, Limerick and Waterford, a total of 15, divided as to five to be appointed by the corporation, four to be appointed by the chambers of commerce, two to be elected by persons paying tonnage rates of £20 or more, and four to be nominated by the Minister, one of whom it is proposed should be a person representative of labour interests. The other specified harbour authorities will consist of nine or 11 members; 11 members where a chamber of commerce exists and nine where there is no chamber of commerce. Four of the members will be appointed by the local authorities, two by the chambers of commerce where such exist, two to be elected by persons paying tonnage rates, and three to be nominated by the Minister, one of whom should be representative of labour interests.
The continuity of an existing harbour authority is not affected by the change of membership, nor are the provisions regarding property, liabilities, mortgages, stock, contracts or agreements altered in any way. The general aim is to constitute the harbour authorities in such a way that there will be balanced representation of the various interests concerned and likely to be concerned in the development and management of the ports. The members appointed by local authorities will be representative not only of those bodies, but of the citizens generally, and the giving of that representation to local bodies should help to promote understanding and co-operation between the harbour authorities and other local administrative bodies. The members appointed by the chambers of commerce will represent the purely business interests. Shipping interests will be adequately represented by members elected by the payers of tonnage rates. Effect is given to the recommendation of the tribunal that some members should be appointed by the Minister for Industry and Commerce and it seems desirable that labour should be represented on each of these authorities and, therefore, it is provided that one of the persons to be nominated by the Minister shall be chosen by him on the ground that he is representative of labour interests.
It will be noted by Deputies who have studied the report of the tribunal that the proposed constitution of harbour authorities follows closely on the lines recommended by it. There are, however, two important deviations. The first is that county councils are given representation as well as urban district councils in the case of the smaller harbours. The second is that the Minister for Industry and Commerce is required, as I have stated, to include a representative of Labour amongst his nominees. Property qualifications are no longer required. In some cases, existing property qualifications are considerable. For instance, at Waterford the members of the existing board must be possessed of real or personal property of no less than £800 in value or occupy premises rated at £25 or upwards. The members of the corporation have protested strongly against that undemocratic state of affairs. It is proposed that the term of office shall be three years for all members.
The tribunal recommended that the Minister for Industry and Commerce should be given a general power of oversight of harbour administration. It also recommended the attendance of officers of the Department of Industry and Commerce at harbour board meetings, but that particular recommendation of the tribunal has not been adopted, because it seems to me that the course proposed is neither necessary nor desirable. Provision is made in the Bill to enable members of a harbour authority to be removed from office on certain stated grounds, such as refusing or wilfully neglecting to comply with the statutory requirements, or if, after an inquiry, it is found that they have failed in the discharge of their statutory duties.
Provision is made for the holding of local inquiries, where necessary, into the performance by harbour authorities of their powers, functions and duties, and into a variety of matters, such as the harbour finances and borrowing, the condition of a harbour, the rates charged, the accommodation and facilities provided. Certain requirements are laid down with regard to tenders and contracts. Regulations can be made to provide for competitive tenders for all works of importance. In future, harbour accounts will be audited by an auditor to be appointed by the Minister for Industry and Commerce.
The continuity of office of existing officers and servants is maintained. As certain positions fall vacant, they will be filled through the Local Appointments Commission. As I have mentioned, the four principal harbours will be required each to have a general manager and secretary. There are already general managers at Cork and Waterford and such a position has recently been advertised by the Dublin Port and Docks Board. When the position of secretary falls vacant at Limerick, a general manager and secretary will fall to be appointed to that harbour. It is contemplated that the appointment of a general manager should ensure that matters of routine administration and expenditure and minor appointments will be dealt with expeditiously, leaving the harbour commissioners free to devote themselves to important matters of finance, administration and development.
It is proposed also that the four principal harbours should be required to submit superannuation schemes for their officers and for their established staff, within two years from the date of the enactment of the measure. Similar schemes are also contemplated for other harbours where the financial position warrants that course. It is not considered practicable to make it a statutory obligation, upon those smaller harbours to prepare and bring into force such superannuation schemes. The operation of a scheme of that kind involves a long-term contract with the staffs of the authorities, which may not be fulfilled if the harbour revenue should disappear. Consequently, it is proposed to sanction the adoption of a superannuation scheme for established staff only in the case of smaller harbours which can show that the harbour revenue justifies that course.
Under the existing legislation, in order to create a new harbour authority or to revise the constitution of an existing authority or to authorise the construction of new works or provide additional borrowing powers, it is necessary to have first a provisional Order under the General Piers and Harbours Acts, to be confirmed by a special Act of the Oireachtas. The number of such special Acts has multiplied and the statutory position has become more and more complex. As Deputies who have been in the House for some time will remember, many of those special Acts dealt with only quite unimportant matters. At present some of our harbour authorities have exhausted their authorised borrowing and require extensions to enable them to proceed with urgent works of reconstruction. Without statutory sanction, they are unable to borrow or proceed with those new works. Cork is a case in point. If separate enactments had to be obtained by each of the harbours requiring special powers within the next few years, there would be a very large number of those Private Bills, involving an undue claim upon the time of the Oireachtas and delays and quite considerable expenditure by the individual harbour authorities.
Therefore, the Bill is designed to obviate a great deal of that unnecessary legislation. It provides that the Minister for Industry and Commerce may authorise a harbour authority to construct works or to acquire land compulsorily. He may fix or vary the limits of the harbour, transfer a harbour to a local authority or transfer to the management of a harbour authority any specified port or pier. It is provided that, if compulsory acquisition of land arises on a large scale, or if it is proposed to transfer a harbour to a local authority or to make an alteration in the harbour limits, the matter must be brought specifically before the Oireachtas. Provision is made to that effect in the Bill. The procedure for obtaining an Order authorising works provides for the publication of notice of the proposals and allows for the making of representations and objections. If considered desirable, a local inquiry may be held. A survey may be made of the intended site of any works which a harbour authority proposes to construct. Completed works and works in course of construction also may be inspected. These measures are designed to ensure that proposed works of an extensive nature are sound from the engineering point of view.
Hitherto, when moneys were required for capital works, they have been borrowed usually on mortgage on the security of harbour revenue. When the borrowing did not exceed £100,000 and was for the purpose of financing new works, sanction could be obtained by the making of a provisional Order. A maximum was set out in the relevant Act or in the provisional Order and in many cases the borrowings were earmarked for specific purposes. Sometimes a time limit was fixed within which moneys could be borrowed. The Bill provides a general power to borrow, with the consent of the Minister for Industry and Commerce. If the proposed borrowings exceed £50,000—or, in the case of Dublin, £200,000—the consent of the Minister for Finance is also required. The manner and terms of the borrowing, the purpose for which the money may be applied, the security to be given, the terms and conditions of redemption of any mortgage and the period of repayment for borrowed moneys may be covered by regulations.
The Tribunal, as those who read its report will remember, made certain recommendations in regard to the methods of granting financial assistance to harbour authorities. They recommended that State assistance should be made available for schemes which the harbours are unable to finance out of their own resources, but that, when such approved schemes are not of national importance, a State contribution should be conditional on a contribution from the local authority. They considered that when State aid was given, it should be by way of loan or by guaranteeing loans by the harbour authorities themselves. In the past, local bodies have only been empowered to assist harbour undertaking when a loan from the Local Loans Fund was concerned. The assistance given by local authorities for essential harbour maintenance during recent years was authorised only by an Emergency Powers Order made under the Emergency Powers Act. The legislation which is now proposed provides that a local authority, with the consent of the Minister for Local Government, may assist a harbour authority by contribution or guarantee or may themselves raise a loan where the harbour authority is unable to do so. It is considered desirable to give supervisory power to the Minister for Local Government in that matter, in order to ensure that local authorities will not unduly burden themselves with heavy financial commitments.
In the past, the only methods open to harbour authorities to obtain financial help from the State were in the form of loans from the Local Loans Fund administered by the Office of Public Works, which loans normally required a guarantee from the local authority; or by grants from the Special Employment Schemes Office, or from the Employment and Emergency Schemes Vote, the grant in such cases being conditional upon the prevailing unemployment conditions in the harbour area; or by occasional grants made on the recommendation of the Minister for Agriculture for the dredging of fishery harbours, or by loans for work of a capital nature guaranteed under the Trade Loans (Guarantee) Acts or, during these last few years of the emergency, by grants administered by the Department of Industry and Commerce towards the cost of essential maintenance.
It has been decided, as a matter of general policy, that State aid should be available in future for harbour development and that such State aid should be given by way of grant or loan in the case of harbours of local interest, subject to the condition recommended by the tribunal, that assistance from the local authorities in the area concerned should also be forthcoming. In cases of schemes which might be classed as of national interest State help will be subject to such conditions as may be considered necessary and desirable by the Minister for Industry and Commerce and the Minister for Finance. That decision of the Government represents a departure, a substantial departure, from the policy followed heretofore. In the past the State did not accept the position of having any obligation to assist financially in harbour development. It is accepting that obligation now, subject, as I have said, in the case of local harbours, to a contribution to the cost of development being forthcoming from the local authorities concerned, and subject in all cases to the revenue available from the harbour being insufficient to support whatever borrowing is considered necessary.
There are, of course, other conditions which will have to be fulfilled and which are set out in the report of the tribunal. It will be necessary for a harbour authority to demonstrate that any capital expenditure it contemplates will have the effect of increasing the traffic of the harbour, or of lowering the cost of handling goods passing in or out of the harbour, or of expediting the movement of goods through the harbour. Apart from works of a major kind, involving capital outlay, it is recognised that many of the smaller harbours have exhausted their finances during the war years when shipping ceased altogether and, because of that exhaustion of finance, they have been compelled to allow maintenance work to run into arrears. Now that shipping activities are reviving, the clearing off of arrears of maintenance work is in many cases beyond the financial powers of the authorities concerned.
The Government have decided as an exceptional measure that financial assistance may be given to such harbours during the next four or five years, subject also to the condition that there is a fair prospect of reviving traffic or of improving facilities available at the harbours so as to cheapen the cost of using them or securing a more expeditious handling of goods passing through, subject to it being demonstrated that the harbour authority, despite the most economical and efficient management, is unable to meet the full cost by borrowing or otherwise and subject also to substantial contributions being forthcoming from the local authorities concerned. In all cases it is contemplated that supervision of the engineering aspects of schemes for which State aid is requested will be entrusted to the Office of Public Works.
There are a large number of miscellaneous provisions in the Bill to which it is not necessary to make special reference. Some of these provisions relate to the operation of harbours. The existing mass of legislation in regard to management, control and operation of harbours is unified and made of general application. A harbour authority may be required to submit proposals for the dredging of a harbour or may be required to have dredging carried out in the specified manner. A harbour authority is empowered to provide facilities for aircraft and make charges for such facilities. There are other general proposals relating to the charging powers of harbour authorities. The existing maximum rates are preserved until varied by a harbour rates order. Uniform powers are provided in relation to the charging of tonnage rates and service rates. Rates are to be charged equally to all persons and harbour facilities are to be available equally on payment of the appropriate rate. The list of rates must be open for inspection. These provisions are, in the main, a codification of existing legislation.
There is one provision to which I would like to make special reference and that is the provision relating to the registration of dock workers. The section, which is new in harbour legislation in this country, empowers a harbour authority to take steps to improve conditions of casual employment of dock workers by introducing a system of registration of workers and by confining employment to registered workers. It is questionable whether that is a function of harbour authorities. It could, I think, be argued that if any such registration scheme is to be introduced it should be done by agreement between the employers of dock labour and the unions which cater for them. In Great Britain, legislation relating to dock registration schemes is at present before Parliament. They contemplate, apparently, putting upon the persons directly concerned the obligation of producing such schemes subject to power being retained in the Ministry concerned to impose such schemes if they are not forthcoming as a result of voluntary agreements.
I do not know whether it is considered desirable that such registration schemes should operate at Irish ports. If it is considered desirable, I do not know if it is regarded as suitable that the harbour authorities should have any function in relation to them. We propose merely to enable harbour authorities to take steps to secure the establishment and operation of such schemes, but if there is any substantial objection to the giving of that power to harbour authorities, I would withdraw it. I think there is a great deal to be said for the contention that it is not a proper function of a harbour authority. A section appears in the Bill in order to draw attention to the need for putting upon somebody the obligation of taking the initiative in the establishment of such schemes of registration at Irish ports, if there is general agreement that such schemes are desirable.
The Bill provides for the repeal of nine general Harbours Acts which shall cease to apply to specified harbour authorities and over 100 Private Acts and provisional Orders which will cease to have effect in so far as they are inconsistent with the Bill: A copy of the Bill and of the explanatory memorandum which accompanied it has been sent to each of the public bodies and harbour authorities likely to be concerned with it and they have been invited to submit their observations. The Bill, I think, can be fairly represented, as I have said, to be non-contentious, and if arising from the consideration of its clauses by these local bodies or harbour authorities, amendments which would make it more effective in the achievement of the purposes aimed at are suggested, they will be brought forward for the consideration of the Dáil on Committee Stage. I should imagine that, in so far as this Bill will be discussed at all by the Oireachtas, the discussion will take place mainly in Committee. The principle of the Bill is likely to be acceptable and it is only in relation to its detail that differences of opinion may arise.