I move: "That the Bill be now read a Second Time."
The purpose of the Bill is to establish a harbour Authority for Bantry Bay in pursuance of the Government decision announced on 29th October, 1974. The Bill is, as Deputies will see, simple and straightforward. It provides for the establishment of a harbour Authority to be known as the Bantry Bay Harbour Commissioners and for the addition of the new Authority to the Authorities in Part II of the First Schedule to the Harbours Act, 1946. This means in effect that the new Authority will be subject to the provisions of the Harbours Acts, 1946 and 1947.
The Bill also defines the area of jurisdiction of the proposed Authority which broadly speaking is the whole of Bantry Bay except the Castletownbere Fishery Harbour Centre, over which the Minister for Agriculture and Fisheries will retain control. The pier at Bantry which is at present under the control of Cork County Council will be transferred to the new Authority, but responsibility for other piers in the bay will not be affected by the Bill. The proposed Authority will have powers, functions and duties which I believe will be adequate to meet the situation at Bantry. For Deputies' information, I will outline the considerations which led to the introduction of this Bill.
In 1968, the Gulf Oil Corporation of America established, and have since operated there, a crude oil transhipment terminal at Whiddy Island in Bantry Bay, where they have provided an off-shore jetty and ancillary facilities. The corporation hold, with effect from 2nd October, 1968, a 99-year lease of about 195 acres of foreshore at Whiddy Island at an annual rent of £7,000 per annum. The lease was granted in accordance with the provisions of the Foreshore Act, 1933.
At the time of establishment of the Gulf Oil terminal at Whiddy the need for a harbour authority was examined in my Department. The conclusion reached at the time was that for the satisfactory operation of the terminal there a harbour authority was not required. Pilotage was being provided on an own-user basis by Gulf whilst enforcement of requirements relating to safety of navigation generally in the bay, pollution control, and so on could be effectively supervised by the relevant authorities concerned, namely, the Commissioners of Irish Lights, my Department and the county council. Gulf Oil had no objection in principle to the establishment of a harbour authority and to the payment of dues in respect of the services rendered by such body, but from their point of view, the whole project at Whiddy was only marginally economic and they should not be expected to make substantial payments over and above what would be necessary to defray the cost of the necessary facilities and services which a harbour authority would be expected to provide. A harbour authority was not necessary in the circumstances then obtaining.
As the terminal and adjacent waters did not fall within the jurisdiction of any existing harbour authority no dues fell to be paid by Gulf. At the same time the right was reserved to set up a harbour authority at a later stage if that proved to be necessary or desirable and this condition was accepted by Gulf on the understanding that they would not be expected to pay dues incommensurate with the necessary services which such a harbour authority would provide. Since the terminal was opened Gulf have provided at their own expense the facilities and services which they would normally expect to obtain from a harbour authority in return for dues. This position still remains.
Regardless of the question of harbour dues, the Gulf Oil terminal at Bantry is of very considerable value both to the immediate locality and to the nation generally. The original capital investment by the company in Ireland was substantial and very welcome. Arising from the operation of their terminal Gulf are responsible for the spending of a considerable sum by way of wages, salaries, fees and so on, amounting in the aggregate to something in excess of £1 million per annum. Revenue arising directly or indirectly from each call of a large tanker is nearly £20,000. In addition to these benefits, the Gulf Oil Corporation have entered into formal agreement to hold a reserve of one million barrels of crude oil at Whiddy which would be at the disposal of the Government in the event of an emergency. This stock represents approximately ten days' supply for the State and, as on the occasion of the oil crisis in 1973, would be available as iron rations which would be refined in Cork if that became necessary. The current value of this agreement to the economy is indicated by the following figures. The cost of providing the tankage for one million barrels would be about £3.5 million and the cost of the crude oil itself about £4 million, that is, a total capital cost of about £7.5 million. The annual operating costs would be approximately £750,000. It will be seen, therefore, that Gulf's operations are of considerable benefit to the local and national economies.
I am convinced that local, and indeed national, appreciation of this value is increasing. This is evidenced by the concern being expressed at the current down-turn in activity at the Gulf terminal. I welcome recent assurances from Gulf of their intention to stay in Bantry Bay. However, we must accept that the immediate future for the terminal is going to be very difficult. Many factors are contributing to this, the majority of which, for example, the stagnation in world oil consumption, the consequent recession in the crude oil shipping industry and overcapacity in European refineries—are outside our control. It is all the more desirable, therefore, that those factors which are under our control should not aggravate the present difficulties of the terminal.
It would be idle to pretend that the decision to establish a harbour authority at Bantry is not related to the unfortunate incidence of oil spillage in the bay. While the two most recent spillages were very serious, it is important to retain a sense of proportion in the matter. The total quantity of oil spilled in Bantry since the terminal was opened in 1968 is only a minute fraction—some 0.002 per cent of the total throughput of oil there. By any standards, this is a good record. I must stress, however, that I am emphatic, as indeed are Gulf themselves, that as far as is humanly possible, no spillage of oil should occur.
Even if there had been no serious spillage, the logic of events was such that the establishment of a controlling authority for the bay was only a matter of time. As is generally known, planning permission has been granted for a large oil refinery at Whiddy Island. In addition there is a proposal for an off-shore oil platform construction project near Castletownbere. There may well be other similar major industrial proposals. The possibility that in the fairly near future more than one major user might be involved at Bantry Bay meant that some form of controlling authority would eventually be necessary. In considering what form of authority would best suit, regard has been had to local conditions and to possible industrial developments, and so forth, there. Following close consultation with local interests, and indeed some national interests with local application, I have come to the conclusion that what might be termed a traditional-type harbour authority under the Harbours Acts, 1946-47, would best suit for the following reasons:
(a) my primary concern is for the safety of navigation within the bay and for the provision and proper regulation of harbour facilities required there; a harbour authority as now proposed will have the necessary powers to ensure this,
(b) an equally important concern of mine is the prevention of oil pollution in the bay. The relevant Acts governing oil pollution—the Oil Pollution of the Sea Acts, 1956-65—are at present under review and I intend to promote legislation to provide for greater penalties for conviction on indictment of oil pollution,
(c) the conservation of natural amenities within the Bantry Bay area is a function proper to the planning authority, in this case the Cork County Council,
(d) the industrial development of the area is a function proper to the Industrial Development Authority and to my colleague, the Minister for Industry and Commerce, subject to planning approval.
Under the Acts of 1946-47 a harbour authority is classified according to whether it is listed in Part I or Part II of the First Schedule to the 1946 Act. The harbours colloquially known as Part I harbours are the major ports of Cork, Dublin, Limerick and Waterford; harbour authorities for such harbours are composed of 23 members. As Bantry Bay is essentially a one-user harbour, I consider it would more appropriately be classified as a Part II harbour which, under the Acts, has an 11-man Authority. Representation is provided under the Acts for four local authority nominees, two local chamber of commerce nominees, two elected members representing shipping interests and three Ministerial nominees, one of whom must represent labour interests. I would like to emphasise that, apart from the representation provisions, the differences between Part I and Part II harbours are minimal. A Part I harbour authority has, effectively, no additional powers or functions over a Part II harbour authority.
The present Bill accordingly proposes to add Bantry Bay to the list of harbours in Part II of the First Schedule to the Harbours Act, 1946. All the provisions of the Acts of 1946 and 1947 will apply to the new Authority. The Authority will, therefore, have adequate powers to control navigation within the bay, to levy tonnage, goods and service rates to meet necessary expenditure on harbour facilities and to make bye-laws for the good management of their harbour. I am satisfied that the new Authority, based as it is on the concept of local and independent control of Bantry Bay, will prove itself fully suited and adequate to meet the situation at Bantry and I therefore confidently commend the Bill to the House.
