When we last discussed this Bill I put on record the reservations of the Labour Party about the implications of this kind of legislation for urban renewal and development here. I am anxious to make one final substantive point before I conclude my contribution. The principled objection that the Labour Party have to the canonisation of this political deal between Deputy Gregory and Deputy Haughey — that is precisely what it is — is that in the process in the canonisation, in the making of a Taoiseach, we have been dragged down the path of introducing a piece of legislation that will reverse the process of local democratic control and independent nonpolitical control of planning permissions. We are all wise and mature enough at this stage to recognise how detrimental and retrograde that step is. I offer to the Minister of State the olive branch of reconsideration, that perhaps in the haste to meet the constraints of the political wheeling and dealing that went on the Bill was drafted too quickly. It was certainly drafted a lot faster than most of the legislation that comes from the Custom House. I am prepared to accept in return for the speed that the legislation was produced that there are deficiencies in it. In the spirit in which I am making that comment the Minister on Committee Stage should consider looking at that fundamental process.
I am specifically referring to the two options. One gives the Minister, by right, the power to designate any part of any urban area a redevelopment area and therefore take it out totally of the planning process. The second element enables the Minister to be the final voice of appeal in determining that planning conditions should be attached to proposed development. They are the two principle points that I should like the Minister, and his adviser, to deal with in their reply. I should like to give them advance notice of the fact that the Labour Party will be tabling amendments along those lines in the event of the Government not sharing my view on the points I have made.
The substantive point of my contribution today is the way in which an efficient publicly owned and well represented section of the public economy, that sector of the economy that comes in for great abuse and is subjected to great attack from those who believe in the private enterprise system, will be asset stripped. It is now proposed to asset strip a profit-making efficient public enterprise by virtue of section 8. Leaving aside the morality involved in that, I want, on behalf of the public sector to defend the efficient sections of the public sector, and we have many of them.
Journalists and financial commentators seem to think that by virtue of the fact that an enterprise is publicly owned it is therefore congenitally inefficient and that there is some automatic link between public ownership and inefficiency on the one hand and some divine link between private ownership and efficiency on the other hand.
Section 8 will enable the Minister for the Environment, and the Minister for Transport, to effectively hijack from the Dublin Port and Docks Board a massive asset which they have had for many years. That in itself is reprehensible, but what is far more reprehensible is the fact that the Dublin Port and Docks Board have embarked upon a capital expansion programme essential to the economic function of Dublin port and with the consent of a Minister for Transport, Deputy Reynolds, to the value of approximately £10.5 million. They are borrowing capital, with the consent of the Minister, as they must do legally, on the collateral of the value of their site which is the subject of section 8.
That is a complete reversal of the consultations that took place between the Department of Transport and representatives of the Dublin Port and Docks Board. I must stress that the Dublin Port and Docks Board is an efficient publicly owned and managed enterprise upon which the entire region of Dublin depends. It is the largest single deep sea port on the east coast and is the major port through which manufacturing industry in the Dublin region, which constitutes the bulk of industry in the country, depends.
The gravity of this political deal is such that if section 8 goes through in the way that it is capable of going through we are putting at risk in order to save the job of one person, the Taoiseach, the jobs of 1,400 people who work directly with the Dublin Port and Docks Board and the many other people who derive a livelihood from the activities of the port. I want clarification from the Minister of State on this. I want to know what consultations prior to or during the drafting of this legislation took place between the Departments of Transport and the Environment in regard to section 8. I should like to know the official opinion of the Minister for Transport in relation to his assessment of the potential value of the site. In the event of the Minister for Transport conceding totally the site to the Department of the Environment, and the commission, I should like to know what replacement moneys will be made available to the Dublin Port and Docks Board, on what terms and how that money will be raised. This is the bottom line of this kind of political dealing. Various estimates and values have been put on the site of the Dublin Port and Docks Board. The critical thing is that the board has a capital programme of £10.5 million set against an annual turnover of £15 million. That kind of ratio of development to their current income is extremely high and leaves the board very exposed. Any shortfall in the type of moneys they have reasonably anticipated, with the consent of a Fianna Fáil Minister for Transport, will seriously jeopardise the economic, effective and efficient functioning of this enterprise which employs many Dublin people generally and many people in the constituency which I represent. The Minister of State for Urban Affairs represents the same constituency.
I should like to read into the record a statement issued by the Dublin Port and Docks Board, dated 11 June last. The following is the statement:
A special meeting of the Dublin Port and Docks Board to-day decided to seek an emergency meeting with the Minister for Transport to state their position with regard to Sec. 8 of the Urban Development Areas Bill 1982, which is scheduled to have its second reading in the Dáil next week. The Bill proposes to take possession of 27 acres of the Board's property at Custom House Docks.
Section 8 of the Bill gives considerable reason to believe that the compensation in respect of the land may fall well short of reasonable market value and, consequently, the Board wishes to state its position.
(1) The Board is a statutory authority providing a vital service to the country and to the Dublin region in particular, without which the economic activity which eventually depends upon imports and exports would be seriously damaged.
(2) In the event of reasonable market value not being obtained by the Board for the area in question the Board will be subsidising the Government in financing the necessary urban re-development proposed in the Bill.
(3) It does not appear that in drafting the Bill, any thought was given to the consequences, not only for the Board and the port but for the community at large, of what is in effect a legalised hi-jacking of the Board's assets, an action which is but one step removed from impounding the Board's cash resources.
(4) The money required to finance the Board's current capital development programme has been borrowed from the Commercial Banks with the consent of the Minister for Transport and the Minister for Finance, obtained some three years ago.
(5) When these funds were being borrowed it was made clear to the Government Departments and the Banks involved that the repayment of the major portion of these loans would be effected in due course when the Custom House Docks site was disposed of. The Government Departments involved clearly understood, approved of and encouraged the development programmes and the financial arrangements proposed at that time. The development programmes are now well advanced and have not required new reclamation. These programmes have been adopted and approved by Government and enshrined in many statements by Government Ministers. Speaking at a public function on February 12th, 1981, the then Minister for Transport described the Port Board's investment of £5.25 million in development works in that year as a necessary part of the £8.4 million being invested by Port Authorities in harbour facilities.
(6) An Taoiseach in Dáil Éireann on 25th March 1982 recognised that Dr. FitzGerald's Government has proposed to acquire the Custom House Docks by agreement, but that Government went out of office before effect could be given to this decision.
(7) Since the cost of providing, maintaining and developing port facilities (including warehouses) is borne by port users, the question arises as to whether port assets thus provided under statutory provisions can to all intents and purposes be confiscated without at least a full reimbursement for the benefit of such port users of the value of such assets.
(8) If the Custom House Docks does not realise its full market value the Board would have to obtain substantial additional revenue to meet its capital programme. Failure to obtain this revenue would jeopardize the viability of the Board's activities and endanger employment in the port. Port charges on the other hand cannot be increased to the level required to provide this revenue, without reducing the competitiveness of the port with resultant loss of trade and employment.
(9) It is essential that the port facilities at Dublin be developed in accordance with programmes of economic expansion and in anticipation of the growth of activity expected as the current recession comes to an end. As a result the Port of Dublin is in the midst of a capital development programme designed to ensure that the facilities offered will be appropriate to service the import and export trade anticipated up to the end of the present decade.
(10) The Board is charged with paying its own way for both day-to-day operations and for its capital development and as a result it trades without subsidy. It charges its customers, and importers and exporters, for services provided in relation to their goods and makes charges also on the ships which enter the port.
(11) Dublin port provides these services in competition with other ports in Ireland, many of which have obtained substantial grants from the Government. The port is also in competition with the ports of Northern Ireland where capital development projects have access to substantial EEC Regional Development Fund grants not available in Dublin. However, Dublin Port and Docks Board has always been mindful of the less welcome consequences of dependence on such sources for financing its capital programmes and has accordingly managed its undertaking, its estate and its assets with the objective of retaining its financial independence; this independence has hitherto been welcomed by successive governments not only as fulfilling the Board's obligations to pay its way but as reducing also the burden on central funds created by other public bodies and semi-state organisations which cannot survive without substantial State assistance.
In the parlance of official statements from semi-State bodies or public agencies, that is a strongly worded statement which can in its content refer to a description of section 8 as legalised hi-jacking of the board's assets. A board representing the various sections such as are represented on that board, including the CII and the other major trading interests, do not use that kind of language loosely and certainly cannot have attached to themselves the description of being either revolutionary or radical. Therefore, their concern is very real and it is the responsibility of the Government to answer it in this House. I would add to the comments that I have made in relation to the Dublin Port and Docks Board that they got very little joy and much intimidation when they met the Minister for Transport to voice their concern regarding this proposal.
I conclude the points I want to make in relation to this by saying that the way in which this can be dealt with is that section 8 could simply be removed and that the process of compensation for Dublin Port and Docks Board should be similar to that which would be effected in relation to Viking Dublin or medieval Dublin — in other words that it come in under the normal process of compulsory acquisition and that the process of arbitration be the avenue down which both sides will travel in order to arrive at an agreed price. The simplest legislative way that we can do that is to delete section 8 and allow the acquisition of the Port and Docks Board site of 27 acres to proceed in the normal fashion. Lest anybody try to argue that that would delay unnecessarily the provision of housing and development in the site, the Minister will be well aware that there is no impediment to the acquisition of the site going ahead and the process of arbitration carrying on separately and parallel with it. Both things can happen simultaneously. Therefore, the proposal to delete secton 8 would not impede or hold up the essential development of the 27 acres.
Let the House be under no illusion, the Port and Docks Board do not themselves require this land for essential port activities. They initiated the process of redevelopment which brought about its emergence as a political carrot or stick, depending on your point of view, in the last election. Therefore, its development is essential to the inner city of Dublin on the north side of the River Liffey and a realisation of a substantial portion of its value is a key component in the financing of the board's capital programme.
As far as the Labour Party are concerned, and we confirmed this after a meeting we had with a deputation from the Port and Docks Board people yesterday, we are fully in favour of the provision of houses and overall development on the north side of the Liffey in a way that the Port and Docks Board themselves were not in favour of it when they produced a document to which I referred on the last occasion we were speaking in this House on this matter. However, we are not in favour of robbing Peter to pay Paul or to provide houses for people who are now about to be made jobless as a result of this kind of crazy intervention or planning. Therefore, we must have a balanced approach between the two.
In legal and legislative terms I suggest to the Minister that the most effective way of doing this is to delete section 8 of this Bill to allow the board to take their chances, which is all they want, in the normal process of arbitration and compensation, and that the rest of the provisions of the Bill in relation to the redevelopment of the 27-acre site would proceed. I ask the Minister — because I know he wants to get this legislation through before this House and the other House rise this summer — to consider this proposal seriously. One way or another having regard to the way in which this Government operate, if you do not give the money in this way to the Port and Docks Board people you must give it the other way because we are in the business of buying off or keeping quiet — or whatever form of massage or stroking is appropriate to the political survival of the Cabinet of the day — people who exercise clout, votes and essential economic muscle. As someone who represents a constituency with a large number of people directly employed in the port or alternatively deriving their secure jobs from the extension of port activities, I can say that the port is an essential component not just in my constituency or Deputy Gregory-Independent's constituency but to the entire region of Dublin city and it has embarked upon a capital programme which is an essential part of modernisation in order to maintain its efficiency.
Finally, I consider it to be an unfair and intellectually dishonest attempt to undermine the economic viability of a publicly-owned enterprise and therefore give yet further false witness to the often-repeated lie that somehow our other public enterprise is inefficient and that the State cannot manage its own resources. This is an excellent example, along with other companies like Irish Shipping, of sound, effective, efficient management of a public enterprise. The Labour Party will not stand by and allow it to be raided or hijacked, to use the phraseology that they themselves use.
I have made all the comments I wish to make and have, perhaps, repeated myself to the boredom or annoyance of some Members. For that I apologise but I feel strongly about this legislation. The Minister should seriously consider the points made, in particular the reversal of the process of decentralised control of areas of our country and the re-emergence of that beast we thought we had killed — the ministerial appeal, the worst monument to which is Tully's tower on the bridge in Donnybrook. There is an ominous ring in the section which allows the Minister to decide by order to declare the centre of Waterford, a portion of Clonmel or back alleys in Limerick as urban development areas, over the heads of the people directly concerned. This is the remnant of colonial centralism bedded in the vault of the Custom House coming to the surface again and the Labour Party will continue to combat it.
I recognise that Dublin inner city must be revitalised and the Labour Party are fully in favour of that revitalisation. This Bill will not give to the Government any more powers essential to that revitalisation than they already have and will not give them the powers that will make that revitalisation effective and instant. If we had on the Statute Book the Labour Party Bill dealing with the control of urban building land prices the Government's dilemma over section 7 and section 8 would not arise with regard to the Dublin Port and Docks Board site because the land would be valued on the existing use and not the potential value for office blocks and residential sites. There is no suggestion that the Government will move down that avenue without the pushing and shoving of the Labour Party and other Members.
The other instrument which the Government have to hand but are refusing to use is our most successful state enterprise in terms of economic performance and efficiency. I refer to the 97 per cent State-owned Irish Life Assurance Company who have the necessary expertise, track record and resources from the pension funds, which are the monument to labour movement victories over the past 50 years, to redevelop Dublin City. The power is there but what is painfully absent is the political will. The only political will which is evident in this Bill is the desire to stay in the Cabinet of this Government at the expensive cost of buying the vote of one Member.