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."

Mr. G. Collins

There is a general welcome in the House for this Bill and, of course, a particular welcome for it by Members from Cork city and county. That is only natural because they have been privileged through the nomination of Ringaskiddy for development as a free port. Other Members, including me, give a welcome to the Bill which we would have wished to be broader and wider in its application so that other suitable locations would have been looked at for nomination as free ports. We have been told that other locations may follow in due course, that this is an enabling Bill. That shows that the Government are embarking on this without a proper detailed study of other locations throughout the country which might be more suitable than Ringaskiddy, about whose nomination I remain to be convinced. Members of Fine Gael, particularly Deputy Avril Doyle, expressed the same feeling.

The idea of a free port is not a new one, and we know that even in mediaeval Europe, in the Hanseatic League, free ports were established for entrepôt trade in northern Europe.

It is a proud boast of the Fianna Fáil Party that the first customs free port in the world was established by a Fianna Fáil Minister, the late Seán Lemass, at Shannon Airport on the banks of the Shannon estuary. The debate on the Second Stage of the Customs Free Airport Bill of 1947 still makes extremely interesting reading. Indeed the prophets of the day, including the former Leader of the Fine Gael Party, James Dillion, must surely regret his contribution to that debate, i.e., he foretold then that Rineanna, as Shannon was known at the time, would have nothing but rabbits running wild there. Regrettably, he did not see the possibility of the development which has taken place there since, and no doubt the further development which can still take place.

There are more than 400 free ports throughout the world at present, and it is believed that about 20 per cent of world trade takes place through them. Most of this growth in trade through free ports is taking place in less developed and developing economies where they have been a spectacular success. There are free ports in Taiwan which provide more than 70,000 jobs; there are three in Malaysia with 22,000 jobs, two in South Korea with 120,000 jobs; and one in Mexico with 70,000 jobs.

I recently visited Taiwan and there I met the Vice-Minister for Trade who told me he got the concept of the free port in Taiwan at Shannon Airport while having discussions with Brendan O'Regan and his colleagues of the Shannon Free Airport Development Company in 1963, and now 23 years later we are thinking of embarking on similar activities ourselves.

It can be said that the most successful free port in the world is in Miami in the United States which is the biggest privately owned venture in the world. The most important aspect is, of course, its location because it can deal with the United States, Central and Southern America and Europe. It is in a unique position, geographically speaking, for this kind of development and it has the added attraction of a very large cargo airport beside the port, the port itself being the third largest container terminal on the east coast of the United States. It is, of course, an extremely powerful international financial centre and is acknowledged as the most successful free port in the world. There are lessons to be learned from it. The decision to site the free port there was based on strictly commercial and not political considerations.

We have a lot to learn on how to establish successful free ports here by examining the operation in Miami and some of the more successful free ports in other parts of the world. I understand our neighbours, the Scots, brought a director of Miami free port to advise them on how to develop a free port in Prestwick in Scotland. This should not go unnoticed. We should be prepared to contact as many people as we possibly can who are extremely knowledgable in this area to advise us.

At the outset, we should be clear in our minds that the purpose of a free port is to stimulate economic activity and add employment in the region. The very fact that a port is established in a particular area means that a range of benefits is conferred on businesses setting up in such ports.

The financial benefits will derive from deferred liabilities for customs duties and VAT. In the case of customs duties the Bill provides that the non-European Community goods imported into a free port will become liable for customs duty only if and when they are subsequently placed on the Community market. Goods originating in the European Community, of course, are in free circulation and are not subject to customs duties on arrival in the State in any event. The benefit of this concession to the cash flow of a business will depend, of course, on the nature and extent of that business. An indication of the degree of potential benefit is that the average rate of custom duty is of the order of 10 per cent.

The Minister of State, in his introductory remarks, did advise that there are no proposals in this Bill for VAT reliefs but that they would be the subject of separate regulations to be made by the Revenue Commissioners under the VAT pact. I understand that the main thrust of the regulations will be as follows: first, a business operating within a free port would be able to import, without payment of VAT, materials, machinery and so on for use in the free port in connection with processing or manufacturing there. Secondly, VAT would be charged at the zero rate on goods supplied within the free port. Thirdly, goods entering the rest of the State from the free port would come under the internal VAT system if the subject of a sale, which would normally be the case, and would not then incur import VAT.

I understand that under these arrangements finished consumer goods would not quality for relief from VAT on importation into a free port nor in general would any other goods imported for re-sale. Relief would apply to all materials components, plant or machinery imported for use by a manufacturing or processing concern within a free port.

We are advised that this is the correct approach, since as I have said already the purpose of the concessions is to stimulate economic activity and therefore employment within the free port and not simply to divert normal trade from elsewhere in the State.

It is well to remember that a free port will also afford some less tangible but nonetheless real and valuable advantages apart from the financial benefits I have already mentioned. Advantages such as a concentration of facilities and infrastructure leading to economies of scale, a more secure environment, simplification of customs procedures and documentation, which of course would be extremely attractive to small firms and firms which might not otherwise become involved in re-export trade.

It is well that we remember at this stage that we have economic stagnation in many parts of the State. There is a very great obligation on the Government and all State agencies to ensure that this new venture of free ports succeeds.

We have the highest unemployment ever and all efforts to defeat that problem to date have failed. Time is running out on us and we have an opportunity, however limited, under the Free Ports Bill, to try to make another effort and perhaps more serious this time, if we are to provide for the unemployed.

Free ports can be successful but we must have the right mix. We must provide first class world standard services and we must remember that anything but first class services will not succeed.

The United Kingdom has already designated six areas where they hope to establish successful free ports. These are: Belfast, Birmingham, Liverpool, Cardiff, Prestwick and Southampton. The British Government, while giving every encouragement for their success, have given also an ultimatum that the ports should develop within a five year period. Reports to date indicate that Liverpool and, in particular, Southampton, are the most successful. There is of course a lesson to be learned from this too in that, from the start it is obvious that Southampton and Liverpool enjoyed natural advantages over the other centres. This is a most important point and one that should be at the forefront of all our thinking in this area.

Naturally, political decisions play a major part in designating areas for development as free ports but I warn the House that we cannot afford to ignore the basic essentials which are required for the success of a free port.

It has been reported that the development of the free ports in the UK has been slow. There have been criticisms of the customs regime to the effect that it is too rigid. From the beginning we should remember that all free ports are subject to the criteria set out in the EC directives. We must remember that to a large extent a free port is a free zone within a larger customs zone, in this case, the EC.

Again I strongly advise that we must be prepared to learn from the experience of the UK and that we should not think that simply by designating Ringaskiddy or the Shannon estuary or anywhere else as a location for a free port, the venture will be an instant success. That is something we should remember also from the beginning. A free port can succeed only if the right mix is present, if it is attractive to the investor and if there is proper, effective and vigorous marketing by the operators of the ports.

In his opening address the Minister of State said that he was introducing this enabling legislation at this time while the options for arrangements regarding development and management of the only designated area so far are being investigated. The Minister assured the House that he would proceed with the enactment of a Bill to make as quickly as possible the necessary orders and regulations to bring into being a free port at Ringaskiddy. There is a great need for a free port there. There is colossal unemployment in the area but that is the case, too, in many other areas. A new deep water berth is being provided at Ringaskiddy at a cost of almost £10 million. The cost is being met by way of a State grant. When that berth is completed — I understand it will be completed next year — it will be capable of accommodating vessels of up to 60,000 tons dead weight. It is obvious, therefore, that we will not have any worthwhile development in a free port area at Ringaskiddy for a considerable time. Undoubtedly, Ringaskiddy would be in a position to compete with Southampton, Liverpool and other places but in the meantime all commercial interests anxious to become involved in free port operations will go to places other than Ringaskiddy because the port there will not be ready.

I suggest to the Government that there should be undertaken as a matter of urgency a comprehensive study of all the locations within the State where it might be possible to provide free port facilities. This should have been done before now. The result of such studies should be made public with public discussion on them taking place as a matter of urgency. If moneys from the Exchequer are to be spent on such developments, the public and their representatives must have all the facts before them before these decisions are made.

The Shannon estuary with its 96 kilometres of sheltered waters and a deep water channel for vessels up to 200,000 tons dead weight is a must for immediate development as a free port. There would be no need to spend millions of pounds there to provide berthing facilities for ships. The facilities are there already unlike the case of Ringaskiddy.

The Shannon estuary has outstanding advantages, not alone from a national point of view but from a European context as well. The estuary's unique maritime capability provides opportunities almost without equal in Europe and it has the capacity, with minimal dredging to handle bulk cargo vessels of 400,000 ton dead weight. I understand there are only three other sheltered harbours in Europe which can accommodate vessels of this size — Rotterdam, Le Havre and the Clyde. The Shannon estuary has the advantage in that it is not affected by congested or shallow approaches as most of the major traditional ports of north-west Europe are. There is no shortage of land and labour on both sides of the estuary from Loop Head and Kerry Head inland.

The European Economic Community recently sponsored a study for the regional development organisation in the area and that study shows that there are three industrial sites at Moyne Point, Colman's Point, Renaland Point on the Clare side of the estuary and on the County Kerry side prime industrial sites for immediate development between Tarbert-Ardmore Point, Asdee, Ballylongford and Dale and of course in County Limerick, all the requirements for a successful free port can be found in the Foynes/Foynes Island, Aughinish and Deele estuary areas. It should be remembered that planning approval has already been given for an oil refinery near Tarbert Ballylongford where carriers of up to 400,000 tonnes dead weight could be accommodated.

It is well to remember that water supply and energy are two important factors to be considered in the establishment of a free port and up to 90,000 cubic metres, 20 million gallons of water per day, can be made available at present to meet this demand. There is a 610 mega watt of electrical generating capacity in the Shannon Estuary at Tarbert Island and this capacity will be increased to 1,500 mega watts when Moneypoint power station is fully on stream, which I understand, will be in a relatively short time.

I feel it necessary to say, not just for the sake of the record but to advise the Government, that infrastructure development is planned to keep pace with industrial growth. Detailed planning studies are available on industrial location, dredging, water resources, assimilative capacity for effluent, power supplies, road networks, housing, environmental and socioeconomic aspects. All the key information is at hand to enable interested industrialists to arrive at speedy conclusions. The Shannon Estuary has witnessed considerable trade expansion in recent times and since 1984 the volume of goods moved through the estuary has increased from 1.5 million tonnes to over 3 million tonnes.

Foynes Island jetty can accommodate tankers of 600,000 tonnes deadweight for the importation of fuel oil. Foynes Harbour, a natural harbour with three berths, having depths alongside at low water of 11.3 metres, can accommodate vessels of 35,000 tonnes deadweight and, of course, has all the advantages of a harbour which is highly developed. This harbour has a rail head with a rail spur and at present more than 700 people are employed there. This is the biggest and deepest harbour on the west coast. It has all the advantages of a highly developed harbour and is a worthwhile attraction.

We have a jetty at Moneypoint, County Clare, which can provide accommodation, as it did recently, for ships up to 150,000 tonnes deadweight. This natural facility already exists. A ship of 150,000 tonnes deadweight can berth within 20 feet of the shore. A number of Members of this Parliament saw that only a couple of weeks ago when they visited Moneypoint. These natural advantages are already there and yet this Government are spending £10 million providing a jetty at Ringaskiddy which will only accommodate ships half that size. Good luck to Ringaskiddy. May they get their free port and may it be a success, but I want to point out that we have this natural facility with twice that capacity staring the Government in the face and yet they are not prepared to do anything about it.

I mention these points to assure the Government that all the requirements for a proper healthy mix for the development of a successful free port are immediately available on the Shannon Estuary and, of course, in addition we have Shannon International Airport sitting on the northern shore of the estuary. The Manpower offices in the environs of the estuary, which has a population of approximately 370,000 people, say that many young, skilled and well educated workers are available.

Before lunch Deputy Coveney mentioned that Cork was a disaster area from an employment point of view. That is a fair admission from a senior Government backbencher, but there are many other such disaster areas throughout the country. In reply to a recent parliamentary question to the Taoiseach I was told that, in my own city and county of Limerick, there are 13,500 people out of work. I understand that in County Clare there are about 6,000 people out of work; in North Tipperary about 3,500 people out of work; in south-east and south Tipperary about 4,611 people out of work; and in County Kerry about 10,000 or 11,000 out of work. What could be more disastrous than that?

I tell the Minister to go ahead with the establishment of a free port in Ringaskiddy because obviously he has strong political backing for it, and it is being designated under this enabling Bill. I will support the establishment of a free port in Ringaskiddy but the Minister should not throw the Shannon Estuary to the winds simply because he does not have the political muscle to do anything about it. We have the proper mix in the Shannon Estuary for the development of a successful free port. I say to the Minister: "Do not turn your back on it. Let the Shannon Estuary be developed in the same way as Ringaskiddy because experience shows that free port developments which did not have the right mix did not succeed."

Mr. Allen

I welcome this Bill. Deputy Collins made a very strong case for the Shannon region, but I would like to remind him that they already have a free port in Shannon, as well as SFADCo which gives a very unfair advantage to that region over other regions. If Deputy Collins got his wish, God help the other regions. We are finding it difficult at present to compete with SFADCo and their activities in the United States.

Mr. G. Collins

May I make one small point for the information of the Deputy? SFADCo are doing for the mid-western region what the IDA are doing for the Cork region. If the IDA are not successful——

Mr. Allen

I was in the United States and saw what SFADCo were doing there. Some of the people who were trying to promote other regions in the United States are very upset about the activities of the representatives of SFADCo——

An Leas-Cheann Comhairle

The Deputy may make a passing reference.

Mr. Allen

——who are taking off a lot of the tourism business into that region. I hope the advent of the Bill will result in a continuation of the industrial redevelopment of the Cork region and will act as a catalyst for the industrial renaissance of the whole south-west region. It is just one of the catalysts, but an important one. A number of previous speakers expressed serious reservations about the free port concept and the performance of the Government in relation to the Cork region. I will be dealing with some of these later.

Deputy Lyons's condemnation and criticism of successive Coalition Governments and his allegation that they were indifferent to the Cork region is, to say the least, inaccurate.

Mr. Lyons

You closed everything down.

Mr. Allen

I will be dealing with that later. The legislation will help the development of the Cork region but it would be inaccurate for anybody to pretend that this is an answer to all our economic ills and it would be unfair to the people looking for jobs in the south-west region. This is an enabling Bill. I know that Members from all parts of the country are seeking facilities similar to the free port being established in Ringaskiddy. The decision to set up a free port in the Cork region became essential when similar facilities were set up at Southampton, Cardiff, Liverpool, Birmingham and Prestwick because it made the British mainland very attractive to industrialists from the Far East who were looking for a toehold on the mainland of Europe. If we did not set up a similar facility our competitiveness in relation to Britain would be seriously diminished. We had no choice but to set up a free port area. It was up to the Government to decide on the best place to set it up. Legislation in this area will only be successful if the appropriate location is selected. The choice of Ringaskiddy is correct because it has the appropriate infrastructue and the necessary financial back-up. There is a lot of goodwill towards the setting up of this duty free port in the Cork region.

I will not repeat what was said in other contributions in relation to the the infrastructure there. The cases put by previous speakers support the statement that Ringaskiddy is the correct location. Ringaskiddy is almost the first landfall of Europe, coming from the west. In relation to Deputy Collins's suggestion in relation to the Shannon estuary, the fact that it is on the west coast and far away from mainland Europe is a major consideration against that suggestion.

There are 400 free ports throughout the world and in most cases they have increased jobs but the experience in Britain, as previous speakers outlined, has been quite different. Deputy Collins mentioned the thousands of jobs created in Taiwan, in Miami and in other areas while Britain has failed, probably because of the numbers set up at the one time and because of other restrictions which I hope will not exist in Ringaskiddy. The advantage of using the free port in Ringaskiddy will include deferred liability for customs duty and VAT. The VAT regulations will have to be dealt with by a separate regulation to be introduced by the Minister for Finance. The other advantages will be a simplification of customs procedures and documentation. These factors will be very attractive to industrialists. I hope the Minister for Finance and the Revenue Commissioners use the EC legislation in the best possible way so that the Ringaskiddy area will benefit to its maximum potential.

Deputy Doyle in her contribution said that a free port has never successfully revitalised a depressed area when that area was chosen strictly on a political basis. Ringaskiddy was selected partly on a political basis but mainly in a strict commercial sense. It is the most suitable area for the setting up of a free port, since we have a deep water berth and a car ferry terminal there as well as the other services mentioned by speakers. Ringaskiddy also has the advantage of having over 1,000 acres under IDA ownership which should attract industries to the region. About £47 million has already been spent in the area in providing services. Unfortunately, the amounts of investment to date in Ringaskiddy has not brought the anticipated returns. The response by foreign industrialists and the lack of success so far by the IDA are disappointing. I know that we are going through bad times and cannot attract industries like those we attracted in the sixties and seventies but still the response to date has been disappointing. I do not criticise the IDA, as I know they are working in difficult conditions and against increased competition from bodies like the Scottish Development Board and the Welsh Development Board. We have not seen the rush of industries which we were led to believe would come years ago.

I reject Deputy Lyons's point that Ringaskiddy was selected for purely political reasons. Ringaskiddy was chosen for its location and infrastructure. The recent Government decision to go ahead with the deep water berth is only the latest of a series of decisions which have brought about enormous investments since the commencement of the Cork harbour development plan under a previous Coalition Government.

Section 2 of the Bill gives the Minister power to establish limits for the free port. I hope that the 30 acres mentioned in the Bill will prove to be totally inadequate and will have to be increased several times in the years to come. Section 3 gives the Minister power to designate individuals to control the free port area and grant licences for the carrying out of businesses there. The Minister for Finance will have to draft separate regulations in relation to the financial implications of the free port. The free port will not be the answer to all the economic ills of the region but it will definitely result in the encouragement of further growth and it will be another step in the industrial revolution that has taken place in Cork, after the closure of many of our traditional industries in recent times. These industries have not closed through the fault of any Government, as suggested by Deputy Lyons in a previous contribution, but simply because they suffered from the opening up of trade through the Anglo-Irish free trade area agreement and the reduction of trading barriers brought about by our membership of the EC.

I would like to quote a passage from Professor Leonard Wrigley's article in the Allied Irish Bank Review for November 1985 under the heading “Cork: Lessons From a Long History”.

From Cork's long history, the most striking fact is that the city, when part of a world market, has never been world class at everything; has never competed in every market segment; but has specialised on its comparative advantage — a magnificent deepwater harbour and an abundant hinterland — and this specialisation brought prosperity. This is no small thing, for it involves skills and institutions and equipment, as well as the harbour and hinterland, all in detailed and harmonious relationship with the imperatives of the competitive marketplace. From another view, Cork's economic thrust down the centuries has been largely determined by the size of the market open to it. As the market expanded, and competition for the market share intensified, Cork responded by greater specialisation on those segments for which it had a comparative advantage in relation to cities in other nations. Correspondingly, when the market shortly contracted — because of tariff walls being built — Cork gave up its specialist thrust to become a jack-of-all-trades, an industrial handyman, for the Irish market. In that light, Cork's present troubles spring immediately from the hundred-fold increase in market size almost, though not quite, from the moment of Ireland's EEC entry in 1973. Against world-class standards, the decimation of Cork's old tariff-protected industrial framework was inevitable; the idea that a city of just 140,00 population could contain a whole mass of internationally competitive industries was unrealistic.

I would not agree with every part of that passage, but it bears out some of the problems of Cork. As I said, the mainstay of the economy in Cork at one stage was a small number of very big, traditional, labour-intensive plants, and the collapse of these older industries dealt the city a very bad blow. Cork and its region have suffered because of our entry into the EC, but our entry into the EC is a factor that we can now take advantage of to the full if we set about it in the correct way, in other words through correct industrial policy and planning. I see the opening of the free port in the Cork region as one of the first steps in our fight back in the industrial revitalisation that is now taking place.

I would like to set out the background to the introduction of this Free Ports Bill. Over the past six years an average of 1,000 first time jobs have been created yearly in the technology industry in the Cork region. Just ten years ago seven firms accounted for 34 per cent of the manufacturing employment in the city, and no less than 60 per cent of manufacturing employment was accounted for by 25 firms. These were in the traditional areas of car assembly, tyre manufacture, shipbuilding, and footwear and clothing manufacture. Most of these firms are now closed for the reasons I outlined just a few moments ago: our advent into the EC and before that the Anglo-Irish Free Trade Area Agreement.

Up to the early sixties a high level of protection was afforded to goods of Irish manufacture with approximately 50 per cent of all imports being subjected to customs duties. These rates of duty began to decrease and, with the implementation of the Anglo-Irish Free Trade Area Agreement in July 1966, tariff barriers between Ireland and the UK were removed. At the same time rates of duty on imports from outside this country decreased still further. On our entry into the EC in 1973 customs duties on imports from the EC countries were removed gradually during the accession period. Because Cork had so many labour intensive industries it failed to get into the new industrial sector and fell behind in its efforts to win new technology in the face of advances made by other areas such as Shannon where we were setting up numerous new technology industries in the electronics area.

Therefore, Cork's new industries are not as mature as those in Shannon and Dublin, and this applies especially to the electronics sector. However, it is encouraging in recent times that a good cross-section of multinational electronic companies have been established in Cork and that indigenous industries are surviving. These new growth areas are in the pharmaceutical and chemical industries, advanced engineering, electronics, health care and natural resource processing which I dealt with in my speech on the NDC. The processing of our natural resources needs to be expanded dramatically.

In 1979 we had only three electronic companies in operation in Cork and now we have 42 in the greater Cork area. Therefore, Cork is well equipped. Infrastructurally, we have also good back-up services and an established university. UCC has the micro-electroncis research centre which is a very good back-up to any of the electronic industries that have come and will come in the years ahead. That centre has published recently a five-year development plan that envisages tripling its size in the next five years. I believe that will result in a greater enhancement of the scope and quality of the services offered and will make the Cork region very attractive for foreign electronic companies. Also in Cork we have the dairy science department in the university and the bio-technology unit which has massive potential if we apply the research in that unit to the processing of our foodstuffs and food products. We have a technical college and the AnCO training centre.

This is the background against which the Free Ports Bill is being introduced and the free port in Ringaskiddy is being set up. Therefore, Cork is entering its second industrial revolution and the seaport at Ringaskiddy and the duty free port will be important factors in this second industrial revolution. With the introduction of the legislation all the international economic signs are very encouraging for an economic upswing in the country generally, and I hope that the enactment of this legislation and the introduction of a duty free port will enable us to take advantage of the upswing in the international economy.

The fall in interest rates, the continued growth in world trade and the stability in exchange rates are encouraging factors and a very encouraging backdrop to the setting up of the free port. The indicators for the first six months of this year suggest that the modest recovery that commenced in mid 1983 will continue and that there will be a continued increase in manufacturing output. However — I am disappointed in this — the increase in manufacturing output has not resulted in a dramatic improvement in the number of people working in the manufacturing sector. It is a major problem because the electronics industries coming in are capital intensive but, unfortunately, not labour intensive. I hope we will see the advent of the labour intensive petrochemical plants we have been awaiting in the area.

I should like to refer to some of the criticisms made in the debate in regard to the Government's performance in the Cork region. Those criticisms need to be answered. To attempt to suggest that Cork has been ignored or abandoned by the Government is inaccurate and untrue. It is an attempt to try to gain political advantage from the misfortunes of the unemployed in the Cork region. It is worth recording that in recent times a small industries division of the IDA was established in Cork and that an enterprise centre will open early in 1986 in the North Mall in my corporation ward. That centre is directly across the river from the national micro-electronic centre.

Mr. Wilson

Which Fianna Fáil establishment.

Mr. Allen

I do not mind who established it, but last year we had to provide the money for it. We approved the scheme last year and construction work commenced shortly afterwards. The roads and bridges constructed in the Cork area in the last two years have ensured that the area has the infrastructure to take any major industry. The Government have also designated areas for special grants such as the 1,000 acre IDA site at Ringaskiddy and the areas at Knocknaheeney, Churchfield and Togher which have been designated for special grants. We must also remember the massive commitment of £89 million last year to Irish Steel. We do not know the final figure for this year yet. Surely that is an indication of a commitment by the Government to the Cork region. The Cork main drainage scheme is going ahead.

An Leas-Cheann Comhairle

Is the Deputy still dealing with the Bill before the House? I appreciate the Deputy's concern for Cork but he may only make a passing reference to the problems of the area.

Mr. Allen

If the Chair examines the record he will find that Opposition speakers went on at length about the ills of Cork and accused the Government of abandoning the area. Surely I am entitled to reply.

An Leas-Cheann Comhairle

Passing references to infrastructures in Cork are reasonable but the Deputy must confine himself to the terms of the Bill.

Mr. Allen

I am dealing with the Government's efforts to create jobs in Cork. I should like to refer to the fact that the IDA provisionally sanctioned grant aid to 21 industrial projects in the greater Cork area during the second quarter of 1985. Those projects will create a total of 307 new jobs. There have been allegations that the construction industry in Cork has foundered. That industry foundered because of the recession but the Government have invested in road infrastructure, housing and so on.

I should like to refer to criticisms in regard to the introduction of this legislation by Mr. Dermot O'Mahony, Chairman of the Cork Harbour Board, in the course of an article in The Cork Examiner recently. He said that the delay in the introduction of the legislation had prevented the full development of the Cork harbour area. It is easy to make allegations but I should like to challenge him to specify where the development of the harbour has been held up.

Mr. Lyons

The Deputy will find an answer to that in my contribution. He may challenge me if he wishes. There is little point in challenging somebody who is not here to defend himself.

Mr. Allen

I challenge Deputy Lyons to specify the development that has been held up.

An Leas-Cheann Comhairle

Deputy Allen should be allowed to continue without interruption.

Mr. Lyons

The Deputy's respected colleague said something about this today.

Mr. Allen

I did not interrupt the Deputy and he should not try for the fifth time to bully Members in the House.

Mr. Lyons

The Deputy's respected colleague told the House about the position in Cork. The Deputy should accept that.

Mr. McGahon

Deputy Lyons should visit the Border areas.

Mr. Lyons

Deputy Allen should consult with Deputy Hugh Coveney who spelled out the problems in Cork.

An Leas-Cheann Comhairle

Deputy Allen should be allowed conclude without interruption.

Mr. Allen

Nobody is denying that the unemployment position in Cork is not serious but it is unfair to the unemployed to try to lay the blame for this on the Government. Those who have claimed, here and outside, that the introduction of the Bill now was too late for the proper development of the harbour should specity where such work has been held up. The IDA have said that they have been in a position to market Cork harbour fully in anticipation of this legislation. Cork can overcome its unemployment problems with help from the Government and it is getting that aid.

Mr. Lyons

It can overcome its problems with a change of Government.

Mr. Allen

We must help ourselves also. We can only get over the problems in Cork by a co-ordinated effort by all interests in the region. I hope foreign industrialists will not be deterred following the bad publicity about Cork in recent times. That bad publicity worries me. I welcome the Bill and I hope the establishment of the free port will lead to a revitalisation of the area.

Mr. Wyse

I am not in the habit of interrupting Deputies but Deputy Allen must admit that he invited interruptions from this side. Deputy Lyons painted a true picture of the position in Cork. I was surprised to hear Members opposite say this morning that employment in the Cork area had improved. We must admit that unemployment has increased and that the forecasts are not good. The Bill is an enabling measure to permit the establishment of a free port at Ringaskiddy and I welcome that. However, this is but a first step. I hope there will not be any delay in the formulation of the necessary regulations by the Minister for Finance. The Minister, and the Government, have spent long enough talking about establishing a free port at Ringaskiddy and I must assume that the Minister is aware of the exact format of the regulations. The Government should use the free port at Ringaskiddy as a pilot scheme requiring long term commitments. I do not wish to replay a Munster Final with my colleague, Deputy Collins from Limerick, and I will confine my contribution to the need for a free port at Ringaskiddy.

I agreed with the Minister when he stated that he did not expect the free port to be an overnight success. It is important that this free port should be given sufficient time to establish successfully, without having to compete with other Irish free ports. I am not being parochial in saying this. A practical approach to any new concept is trial and error. We know that many adjustments and changes will be made in the course of this development. I mention long term commitment, because I understand that some free ports in Britain are experiencing difficulties. The consensus there is that the concept is being held up by inflexible attitudes and regulations. Our regulations must be flexible enough to accommodate new and existing businesses. Cork being such a depressed area, it should be kept in mind that this free port must be used as a nucleus to attract business, especially with a labour content, to ease the appealling unemployment in the whole Cork area. We do not know at this stage how successful this free port will be. That is why I appeal to the Minister to ensure that the regulations are flexible in order to bring about its success.

The success or failure of the free port will depend largely on the provisions and interpretations of section 10, 12 and 13 of the Bill, those sections dealing with duties, regulations and control. It is vital therefore that the future operators of the free port are afforded adequate time to brief the Minister fully on his perceived requirements regarding these matters and particularly regarding VAT and other duties. It will be necessary to discuss the present arrangement under which finished consumer goods would not qualify for relief from VAT on importation into a free port, nor in general any other goods imported for resale. This provision seriously inhibits the attractiveness of Ringaskiddy as a free port and, in my view, should be removed.

The appointment of a free port operator is critical at this stage as a delay in time before physical work on the free port commences may be considerable. Furthermore, consultations are at present under way on an EC common regulation governing free zones. It is intended that this forthcoming regulation will replace the 1969 directive and thus become immediately applicable Community law. The free port operator, and indeed the Government, will need to make their views known before the changes regarding existing regulations governing free ports are made. Our guiding principle in this matter is that the regulations be maintained.

Ringaskiddy has much to offer, such as deep water berth, serviced land for industrial development, an airport. We have all the necessary infrastructure for efficiency and the smooth running of industry. I do not wish to go into the mishandling by the Government in delaying the development of Ringaskiddy. I would hope now that they will see this free port as an asset of great benefit to the Cork area, carefully monitor its progress and provide all the necessary incentives to create a determination by all involved to ensure its success. Determination must be seen from our own Government rather than accepting certain directives or dictates from the EC, where member countries at the drop of a hat break rules in the interest and welfare of their own economy.

Another very important aspect of the free port will be effective marketing at home and abroad. I suggest that no effort should be spared in appointing the best public relations personnel to sell the free port concept. With regard to management and control of the free port, I understand that an application has been made to the Minister for Communications to permit the Cork Harbour Commissioners to advertise for prospective partners to form the free port company. I shall not comment further on this as I may have something to say on Committee Stage regarding management. I do not think a State-sponsored body should be a partner of the Cork Harbour Commissioners. I believe that it should be a group of business people. I am saying this because I understand there may be some talk about including the IDA in partnership with the commissioners. State-sponsored bodies have a sufficient workload already. I would be looking for progressive businessmen to form this consortium.

I refer to the recent visit to Cork by the Mayor of San Francisco and hope that the promise given of so much money for any business that may be viable in the city of Cork would be part of the venture money in supporting business group to manage the free port in the Cork area. Incentives will be the most important aspect where success is concerned. I do not think we will have an opportunity to question the regulations that will be implemented by the Minister for Finance. I believe there will be a ministerial order, which will not come before the House. I am availing therefore of the opportunity to put some suggestions on record as to what I think the Minister for Finance should confine himself to.

Trading within the free port should be exempt from payment of customs duties, including VAT, on goods entering the free port, and goods consumed within. Permission should be given to bring goods into the free port for duty-free retail sales, either for shipment as ship or aircraft stores, or to persons leaving or outside the State. Where it applies, duty should be assessed at the rate applicable here to the raw materials as they enter the free port, or to the finished product at the time of leaving, whichever is the lower. The purchase of plant materials — which could be very important for the Ringaskiddy area, initially especially, for use in connection with the free port — should be exempt from all duties and taxes. It should be possible to create sub-zones within the harbour area to the free port, if required — that is a very important aspect — similar to other designated areas. At the discretion of the local authtority rates should be reduced by two-thirds during the first ten years after the construction of the free port.

I make a very special appeal to the two local authorities in the Cork area to give this matter very serious consideration because every possible incentive will be needed to ensure that this concept will be a viable one for the Cork area. As I said at the outset, I have no guarantee — nobody has — as to how successful the free port will be. Looking across the water we have seen difficulties experienced within other free ports. I have no doubt that the Minister and the Minister for Finance will learn a lot from these, by reason of the fact that the six free ports now in Britain are not considered viable at present. I also suggest that other statutory authorities providing services to the free port be permitted, at their discretion, to provide similar reductions in the cost of their services. Regulations should specify how goods which are within the free port are to be treated for the purposes of the Act. They should also specify the circumstances in which goods which are not within the free port are to be treated for those purposes as being within the free port.

I am putting those suggestions on record in the hope that the Minister for Finance, who will be mainly responsible for the formulation of the regulations, will bear them in mind. From my experience and research into the operation of free ports it would be difficult to lay sufficient emphasis on the regulations because the whole structure and success of this free port will be dependent on them. There is no point in anybody coming into this House, saying, "We are giving you a free port in Cork", while, in the next breath, killing it by regulations. We have been talking about this free port for at least 18 months and the hopes of people in the Cork area have been built up, that this might prove to do something to alleviate the appalling unemployment in Cork. Especially bearing in mind the presence of oil off the Cork coast there should be co-ordinated effort to bring about the employment so necessary to that area.

I make this special plea because I know we shall have no say whatsoever once the Minister for Finance formulates the regulations on which will depend the success of this venture. It is the first free port in the country and every effort should be taken to ensure its success. We can learn a lot from the free ports in Great Britain which are no longer considered viable for one reason only, because the regulations are not flexible. Let us learn from their experience. The Government must be committed to ensuring that everything possible is done to bring about the success of this free port. I would appeal to other Deputies from other parts of the country — Rosslare, Limerick and other places — before making their claim, that they have something to work on. They will have seen the operation of the Cork one and they can question how successful it has been. I do not want to be parochial. But it is of vital importance to the country and everybody concerned that this free port be considered on a trial and error basis because there will be many difficulties experienced in the course of its development. Let us give it time, let it be used as an example to everybody as to how successful and viable it can be.

We Cork Deputies, irrespective of whichever side of the House we sit on, may be accused of being parochial and selfish in this matter. We are not. We are talking about a concept. Certainly I would hope that we would not see a second free port in this country for at least ten years because that is about the necessary time limit for the development of a free port at Ringaskiddy.

Mr. O'Sullivan

This Bill is an enabling one to facilitate the establishment of a free port in the Ringaskiddy area of Cork. It is significant that, with one exception, all of the contributions made so far have been by Deputies from maritime counties or constituencies. For that reason I welcome Deputy Wilson's contribution. He could afford to be somewhat objective and he was. He voiced certain reservations and highlighted points that were quite legitimate whereas all other Deputies, it could be said, had a vested interest. While Deputies did discuss the Bill, deep down I think each and everyone hoped that the free port would be sited in his constituency. Therefore, there was a slight advantage in the case of a Deputy from an inland county who could be more objective in his approach. The representation we have from the west and east coasts is very significant indeed.

I should like to comment on some remarks made by some Deputies. Deputy Wilson welcomed the Bill and expressed concern for the Cork area. There is no need for me to dwell further on that because other Members from the Cork area have spelled out the problems being experienced in our area and with which everybody in the House and the country is familiar. The time for crying is over. It is now time for action. I hope the provisions of this Bill will allow action to begin so that we can tackle our problems. Deputy Wilson also recognised the fact that there would not be any immediate substantial improvement. Experience in Britain has proved that fact beyond doubt.

Deputy Wyse, expressing concern about the Cork area, hoped ten years would elapse before another free port was established in the country. I would prefer to adopt a wait and see approach. If the Cork port proves successful then the overall picture can be examined in order to ascertain whether it would be a viable proposition to set up a second or third free port.

The whole concept of a free port has been carefully examined and is one we cannot afford to ignore. I am sorry that my colleague, Deputy Lyons, from the Cork North-Central constituency has left. I hope he will not think I am taking advantage of his absence. I was disappointed by his contribution. His attitude to the introduction of the Bill was that it constituted too little, too late. I hoped he would have something more positive to say. I was surprised by his contention that the demand was occasioned by the report of the task force. It was generally accepted that the introduction of this Bill was occasioned by that report but nobody can contend that with any degree of certainty. I am glad to see that Deputy Lyons has returned to the House. I did not have access to the report of the task force so I cannot say with certainty what was included or recommended. I regret I did not see the details.

Many aspects must be examined, one being the likely benefits that will accrue to the free port from off-shore exploration. That is an area in which many jobs could be created. Much to our shame much of the activity now going on off our coasts is being serviced from Aberdeen because VAT at point of entry acts as a disincentive to people importing the necessary equipment. It should be remembered that there is very valuable equipment associated with this industry — the drill, the drill stems, the casings, the heavy anchors, the drill bits, the cable buoys which must be imported——

Mr. Lyons

The dockyard.

Mr. O'Sullivan

——and the dockyard. The maintenance of this equipment involves many painters and oilers in order to keep it in tip-top condition, rendering it ready for use in what is a very difficult area of exploration off our coasts. Up to now a lot of this equipment has been stored in Aberdeen. This is deplorable. I hope that with the introduction of the free port at Ringaskiddy all our off-shore fields will be serviced by Cork Harbour. The fact that much of the equipment originates in the United States, Canada and Japan will be of tremendous advantage to the free port.

Several speakers have said that the free port should be established on sound commercial criteria. Deputy Doyle particularly made this point. This has been the major yardstick for free port success in other countries. I make no apologies for the fact that politics are involved in the setting up of the free port at Ringaskiddy, but there are also sound commercial reasons for locating the free port in Cork Harbour. Deputy Collins made a rather scathing comment on the scale of the investment to date, whereas Deputy Wilson said that he had an active part to play in the development. This is a small country and I fail to see why we should indulge in this type of tribal friction. It is in the interest of everybody that Ringaskiddy works. We should go forward without reservation rather than with tongue in cheek.

Regarding commercial criteria and the suitability of Cork Harbour as a location, 4.5 million tonnes of general cargo passed through the harbour last year. By any standard that is quite a large amount of traffic. If we were to centre it in the main area of commercial activity it would have to be in Dublin. Deputy Collins said that the volume of cargo in the Shannon Estuary had gone up to 3 million tonnes but we must bear in mind that this is largely made up of coal imported to Aughinish and other firms in the Shannon Estuary. Were they to switch from the use of coal to natural gas the tonnage in Shannon Harbour would drop dramatically. The Shannon obviously has a lot to offer and I am not criticising any Deputy for making a case for his own area. However, it should not be used as a weapon to put down this development at Ringaskiddy.

We are talking about European markets in relation to Ringaskiddy. Deputy Doyle referred to the fact that trade to Britain has decreased. She gave statistics concerning Rosslare Harbour, which one million passengers passed through up to last year. There was also a huge increase in the amount of roll-on roll-off traffic.

Mr. Lyons

A lot of that was ours.

Mr. O'Sullivan

Yes, it was diverted from Cork. Before criticising the location at Ringaskiddy as not being attractive or commercially viable, it should be pointed out that one can get to Roscoff in Brittany in 14 hours or to Le Havre in 17 hours, whereas it takes 24 hours to get from Rosslare to Le Havre. That is a very important factor. Ringaskiddy can stand up against these figures. I imagine there will be many activities in the offshore area resulting from the setting up of the free port.

I now turn to the area of job potential and job creation at Ringaskiddy. Several speakers have referred to enticing high technology to the area. We have been hearing about the educational facilities in the area such as the university, the regional colleges and the NIHE. We have people with the ability to do this type of high technology work, but we must not forget about creating low technology jobs for people who have little technical ability. The manual worker has been forgotten. The great emphasis is being placed on the high technology area but we need labour-intensive low technology enterprises as well. I do not see anything wrong with manual labour. I was a labourer myself, I was not a skilled person, although I was a State employee. General operatives and people with no technical qualifications but with a desire to work must be borne in mind.

I accept that this is very important legislation but it must be seen in association with the regulations which have yet to be presented to this House. Deputy Wyse spelled out some of the regulations which people in Cork feel should be included. Without these regulations and without taking away the obstacles, I do not think it will be a very successful venture. It is also extremely important that these regulations allow for a successful free port. Goods coming into Ringaskiddy from outside the EC must be VAT free. Trade within the free port area must be free of VAT. Goods traded within the free port must not become liable for VAT until such time as they are picked up on the open market or outside the free port area.

The point has consistently been made during this debate that the regulations must not be interpreted too harshly or they will hamper the successful operation of the free port area. In other places the harsh implementation of regulations and an over-rigid approach by customs people have proved a disincentive and have not been conductive to the success of these ports.

Deputy Collins mentioned Miami as one of the most successful free ports but because most of the goods originate within the United States the free port consists of nothing more than bonded warehouses. They depend far less on imported goods than we do. There is a slightly different approach in Europe in places like Rotterdam and parts of West Germany where they are experiencing steady success. This is because they are located in areas of large population. The United Kingdom has not been so successful. Reference has been made to Liverpool and the other five locations. The British have not been as successful in this area as the Dutch or the Americans or countries in the Far East.

I have already referred to the location of the free ports on the south coast. We have a deep water berth at last. A great deal of money has been invested in it and I hope it will now show a return. However, I would not like to see it developed along the same lines as in the Far East. Reference was made to the fact that there is a successful free port in Hong Kong but this is because there is a cheap labour market there. For instance, in Korea there was a guarantee that the workforce would not be unionised and they did not have to cope with planning permission. I hope that anybody setting up here would be prepared to accept standard practices in regard to industrial relations and planning applications. They should also be answerble to local authorities in regard to planning permission.

It is a great pleasure to welcome the introduction of the Bill and I hope it will have universal support.

Mr. Daly

This Bill gives us an opportunity to direct our attention to the need to develop our huge marine potential. Perhaps this debate should have been held in Thurles because it seems to be the mid-west against Cork. We do not want to interfere with anything taking place in Ringaskiddy and we are aware that the huge investment there is necessary. Various Deputies have criticised Government delays and inaction in developing the Ringaskiddy deep water facility which is a very worthwhile investment and a useful infrastructure for Cork. We wish to see that potential developed and the Bill gives us a further opportunity to look at other ports because there has been a lack of policy directed towards the development of marine resources. There is fragmentation of Government agencies and this is why we suggest the establishment of a Roinn na Mara which would be a new marine Department.

The Minister should have taken this opportunity to designate major harbours where free port facilities would be provided. It is essential that we know, with reasonable accuracy, where these developments will take place. While we have designated Ringaskiddy now, the Minister should have designated at least one or two other harbours where necessary research would be undertaken to establish and to benefit the areas in which free ports are established. A huge amount of research needs to be carried out to establish the need for investment and sophisticated communications are necessary to make an operation like this successful. The determination of the capital investment would also be needed to have these harbours adequately developed in order to utilise them to their maximum potential with regard to any business which might accrue from the free port concept. That concept has been overtaken by events in recent times since we joined the EC and all that that means for opening up trade between ourselves and our partners. This has minimised the importance of the whole concept of the old idea of the free zone which I have seen in operation for 20 years in the Shannon Industrial Estate. It has successfully operated there and has been of major benefit to the area.

The involvement of the Community in the operation of our economy has minimised the effectiveness of the free port concept and I should like to question the Minister very closely in this regard. I do not wish to hear the usual propaganda in regard to this issue but what it will mean to Ringaskiddy. Can the Minister identify where the job potential is and where jobs will be created? Can he give any indication of the type of activity which will be generated in Ringaskiddy free port and how it can be utilised to increase further industrial activity in that area? The advantage of the duty free zone in Shannon is that we do not have to pay VAT on imported goods at the point of entry, which means that there is customs simplification and fewer formalities than usual. Would it not be in the best interests of the economy generally for the Government to adopt a simplified customs facility which would enable business to thrive nationally? Are the jobs in Ringaskiddy to be expanded by providing additional customs personnel? Is this how jobs will be provided? We have seen the Government embargo in operation and it has hampered development in many areas. I hope that we will not see more bureaucracy.

I should like the experiment, if one could call it that, in Ringaskiddy to get under way as soon as possible but I do not believe the Minister has put forward a reasonable case in that regard. I am prepared to listen to the Minister's reply and I hope he will spell out where the jobs will be created. They are making a big thing out of this as they did in regard to the National Development Corporation and the Youth Employment Agency. The YEA were supposed to solve all our youth unemployment problems and the National Development Corporation is merely another example of propaganda and bluff. Perhaps more could be done if the Government changed their disastrous policies which have hampered development not only in Ringaskiddy but in the Shannon Estuary, the Shannon industrial zone and every port in the country. They have put a damper on industry which has hampered development. Establishing free port facilities in Ringaskiddy or anywhere else will be just a minor effort towards solving some of our unemployment problems.

For more than two and a half years now the Minister for Communications has, on successive occasions, promised a review of a ports' policy to be undertaken by his Department but there is no sign of any action in relation to such a policy. This Government have not shown any initiative in regard to the establishment of a joint estuarial authority for the development of the Shannon Estuary. The Minister has received many deputations. He has visited Foynes, the Shannon Estuary and Cappagh harbour and he has met public representatives and the interests involved, but we have yet to see any Bill to establish a joint estuarial authority for the Shannon. I know there are problems regarding Foynes but they can be met. People in Foynes have carried out their own development work and they are willing to be involved in any development of the Shannon, either in partnership or in association with any joint estuarial authority.

Shannon is expanding at a rapid pace and this afternoon Deputy Collins gave figures to the House in respect of tonnage going through Shannon port. May I say in reply to the Deputy from Cork that these figures do not include any of the tonnage coming through Moneypoint. Deputy Collins told us that goods traffic through Shannon port in 1985 will exceed 3,500,000 tonnes and is forecast to reach 5,000,000 tonnes in the next three years. These are the projections of the Limerick Harbour Commissioners and they do not include statistics in respect of coal to Moneypoint because that trade commenced just recently.

The Government have failed to exploit the opportunities available with regard to coal being brought to Moneypoint. That station has been under construction since 1979. It was known from the time of the first planning application that coal would arrive at that port in huge amounts from areas throughout the world under contract with the ESB. There were opportunities there to be exploited, but what happened? We had the first consignment of coal in April in a Japanese-British-Norwegian operated boat and they had to hire tugs from Glasgow to tow the boat into position. The Government should have been aware of the enormous possibilities in this area but instead we lost out again and the Norwegians, the Japanese and the British are benefiting. This is happening at a time when we are putting Irish Shipping into liquidation, when Irish boats are up for sale in foreign boatyards and when our whole shipping policy is in disarray and collapse.

The Government may claim credit for this legislation but they cannot get away from the criticism I shall level at them and the criticism that is being levelled at them by people outside this House. It was obvious from the beginning that a huge tonnage of coal will be used in Moneypoint station each year for the next 20 years and it was surely sensible and reasonable that the Government and their agencies should have availed of any business opportunities there. Instead of that, other countries are doing that work while we are putting our ships up for sale in foreign dockyards. Anyone outside this House could quite legitimately ask us if we are serious about protecting our economy.

I welcomed the Moneypoint project which has been operating successfully in the past few weeks. They have there a unique facility. Earlier I welcomed the development of infrastructure in Cork and the provision of finances to develop the deep sea berth at Ringaskiddy. In the Shannon Estuary we are capable of handling the biggest super tankers. In Moneypoint coal distribution for western Europe could be organised and run efficiently if the Government had the necessary policy and had the political will and the determination to carry it out. For a very small expenditure we could have a coal handling facility in Moneypoint for the whole of Europe. There is a tremendous potential for jobs and revenue. There is no need to worry too much about free port facilities because the place could stand on its own. All that is needed is the will and the determination to exploit such natural facilities to the full before the Japanese, Belgians, Portuguese or other people come in here and do it for us. It is about time we did these things ourselves.

The Shannon port is an ideal location for the kind of free port facility spoken about here. With a small adjustment in existing legislation the duty free facility operating in the Shannon area could be extended to cover the harbour. Deputy Allen tried to confuse the issue by saying that already we had a free port facility in Shannon. We have a free customs facility in the Shannon Industrial Estate and we should examine this to see if it is possible to extend it to the Shannon Estuary.

A development that would include both a port and an airport facility would probably be supported by the European Community. This is the kind of regional project the Regional Fund was designed to meet. If we are serious about regional development we should look at the potential in the regions and we should utilise all the facilities that exist there. The Shannon area which has an airport and a deep sea harbour is an ideal location for such development. I am not detracting in any way from the need to develop Ringaskiddy. Good luck to Ringaskiddy and good luck to Cork. We support anything that will create industrial stability and jobs in the Cork area which has suffered so much in the past three years. Because of our deepwater facilities in the Shannon Estuary we have many important projects like Moneypoint, and have planning permission for the establishment of other major undertakings, but we have a Government without a policy for building up our natural resources and utilising our deep sea facilities.

The free zone at Shannon should be extended to the entire area of the estuary with consequent employment of many more people. We should have major success there in industrial development, but the policies being put forward by the Government discourage existing industries in the Shannon free zone. Those industries, many of them very important and successful, have no expansion ambitions and are very cautious about expanding because of lack of encouragement from the Government. Some industries closed down and pulled out of the area and many of their highly skilled staff are not prepared to continue to work under the present regime. Though we are giving grants, many industrialists will say they are finding it very difficult to hold on to their skilled personnel. This is a great loss and it must be tackled by the Government.

There is a great need for a national marine policy. We have seen the failures of Verolme, Irish Shipping and other key enterprises and it highlights the need to bring together the various agencies and Departments to formulate a cohesive plan. I suggest a marine Department which would have a great future, particularly in the Shannon estuary where marine resources are relatively unexploited. The number of job creations would be great. We need industrial structures, and in that region we have the Limerick Harbour Commissioners, the Foynes Trustees and the Cappagh Harbour Authority as well as other smaller organisations, but they lack finances to do what needs to be done jointly.

I submit that we will see a rejuvination of industrial life throughout the country only when we see the end of this Government who have damaged industry to an enormous degree. There needs to be a change and the only way to bring it about is to get this Government out in a general election and get in a Fianna Fáil Government who would recognise the importance of our marine resources. All this Government do is to legislate for the creation of a free port in Cork under the pretence that something is being done. We have now nearly a quarter of a million unemployed but this Government are doing nothing to create new jobs.

Mr. Yates

I wish to deal mainly with section 2 which provides:

the Minister with the consent of the Minister for Finance and the Minister for Industry, Trade, Commerce and Tourism, may by order declare that, on and after a specified date, the land enclosed within the limits defined by that order shall be a free port for the purposes of this Act.

My understanding of the section is that if the Minister decides to extend free port facilities beyond Ringaskiddy he could do it by ministerial order without coming to the House. Therefore, Deputies from other areas would wish to be concerned in any extensions of free port facilities and my concern is that Rosslare port would be considered. I do not make my contribution in any spirit of grudging, but there has been a suggestion since 1982 for the expansion of Rosslare. In 1982 and 1984 the present Minister for Communications announced that he was considering the production of a port policy, and in that connection the Rosslare Harbour Development Board, our of their own funds and from contributions of about £5,500, commissioned a report from Stokes, Kennedy Crowley on Rosslare harbour. We made that our submission in relation to a ports policy but what we get here is ad hoc legislation before any general legislation on ports.

A ports policy was heralded before the Cork Special Task Force was put together. When we take similar decisions to those contained in this Bill we have debates on geographical preferences, what goes where, and we have predetermination by the IDA on criteria laid down by the old Congested Districts Board. What we need is a modern updated study to see which counties should get the highest grant aid. Roscommon has the lowest rate of unemployment in the country but it is a designated area, whereas the highest rate of unemployment outside Donegal is in County Wexford, which is not designated. In regard to decentralisation, Waterford and Carlow have benefited to the detriment of countries bordering on the sea. Geographic relocation has to be thought out independently rather than by political patronage.

In relation to the legislation generally, the experience of the six UK free ports has not been inspiring in that the benefits have not been seen readily to be accruing to the British economy. Therefore, in considering this Bill in a general way, one must have two primary considerations: first, that the purpose of the Bill is to generate new business that would not be created otherwise — it is not for the purpose of shifting business from one port to another — and, secondly, the consideration must be that within the EC where there is a movement of goods and cargo from an Irish port to a non-EC country, Ireland should be the port of location instead of some other EC country such as the UK. In that way the full benefits of the Bill can be realised and we can generate new output and revenue.

The failure to include Rosslare in this Bill can be laid clearly at the doorstep of CIE who are the port authority there. We have seen many examples of Rosslare being slow to develop because of having CIE as the port authority. It is not until the Minister for Communications announced a new port authority for Rosslare, an authority that would be made up of local representative groups, that there was any action at the port. If we analyse the prospects for Rosslare, we find that it is an extremely profitable port. I have yet to see any figures of profitability for Ringaskiddy. In 1981, Rosslare port made a profit of £339,000; in 1982 the figure was £85,000; while in 1983 it was £195,000; and I understand that in 1984 the port made a very substantial gross profit of £1,250,000. Between 1981 and 1982 there was an increase of 52,000 or 6.8 per cent in the number of passengers who used the port. The sailings from Rosslare which are very significant when compared with Ringaskiddy totalled 1,453 in 1981 while in 1982, when there was a slight slump due to the change in sailing arrangements, the figure was 1,292.

Rosslare is the third largest and the fastest growing port in the country. It is the primary natural asset of County Wexford. The basis for putting forward Rosslare for inclusion in section 2 of the Bill is not only because of economics but because of its being the gateway to Europe. It is the ideal location for ro-ro and passenger traffic. While I welcome the Government's commitment to Rosslare in terms of the allocation of £800,000 in the past two years, the inclusion of the port within the terms of this Bill would be most welcome.

It is interesting to note that a group from Rosslare visited Ringaskiddy in October 1983 and saw there some 130 acres of land that had been reclaimed in the previous four years from the harbour area. That is the location of the port. The terminal was opened officially in May 1983. It has all the modern facilities including covered gangways, hydraulic ramp facilities for ro-ro and passenger traffic, all the up-to-date reservation and booking offices and emigration clearance facilities. All that development cost £17 million. By comparison Rosslare was allocated only a 16 per cent grant aid in the form of £1.125 million for its phased development. In addition to the £17 million by way of aid to Ringaskiddy, Cork got 1,000 acres of an industrial estate for the IDA. I expect that they are so far committed in that respect that there is no turning back. In addition there was the incredible situation whereby, the Government not satisfied with all that development, sank a further £10 million into a deep berth port facility.

Mr. L. Burke

Is the Member from Wexford jealous of what is being done in Cork?

Mr. Yates

The point is that there seems to be no limit to the amount of money that may to devoted to this project. Regarding sailings from Ringaskiddy, on the basis of the traffic to Swansea, for instance, a boat has not been justified. Unfortunately, the type of investment there is not showing the kind of return that Wexford is showing without any of that type of investment. Therefore, one must ask what the potential of Rosslare would be if given a chance of the same order.

When we consider that while Ringaskiddy got a grant aid of 88 per cent while Rosslare benefited only to the extent of 16 per cent, we realise the discrepancies that arise. CIE are being pressed to put further moneys into Rosslare. All of this is making our position as public representatives very difficult. The people there are anxious to know why such a level of discrimination should be sustained against them in face of the massive resources being poured into Cork. I am not saying that this Bill is the last straw so far as Rosslare and the people of Wexford are concerned. Instead, the Bill is an opportunity to rectify matters. When it was announced that a free port would be established at Ringaskiddy, the Rosslare Harbour development committee considered that matter to be so grave as to warrant their writing to the Taoiseach expressing their deep concern but our case seems to have been neglected.

I should like the Minister of State to outline when replying whether it was on political grounds, on economic grounds, on grounds of unemployment or whatever that Cork attracted this help. If the money has been poured in there on grounds of unemployment I should like to remind the Department of Communications that Cork has an unemployment rate today of 22 per cent of the workforce whereas the comparative rate in Wexford is 24½ per cent. In that respect we are second only to Donegal which is full of farmers who are in receipt of the small farmers' dole and which therefore cannot be compared with Wexford.

The kernel of the problem is that areas which had industrial development in the sixties and seventies, which established their industrial base, lost a good deal of that employment by reason of factory closures. I have great sympathy for the people of Cork. They have lost Fords, Dunlops and so on but they are wailing about the loss of a development that we never enjoyed. Our industrial base never increased beyond 5.1 per cent. All the media focus and the wailing are directed towards Cork because of the job losses there.

Mr. L. Burke

The fact is that because of the non-availability of business, the B & I are pulling out of Cork.

Mr. Browne

There is a split in the ranks.

Acting Chairman (Mr. Farrelly)

The Chair would ask Deputies to address the Chair instead of addressing each other.

Mr. Yates

I am anxious always to brief my friends from Cork on the up-to-date position in Rosslare. So far as the B & I are concerned, they will only withdraw on condition that a new jumbo ferry is provided to sail twice a day in conjunction with Sealink.

Mr. L. Burke

That port has cost the taxpayers £18 million.

Acting Chairman

Again, I would request Deputies to address their remarks to the Chair.

Mr. Browne

This is not a party meeting.

Mr. Yates

This gross provocation from the Cork Deputies is difficult to resist. If we consider the level of savings for Ringaskiddy and the relevant figures for Rosslare we find there is no justification for favouring one port as against another in terms of the provision of free port facilities. If we look at the south-east region, we must look also at the report of the South-Eastern Regional Development Organisation. They said County Wexford was a black spot within the five counties of that region and that the case of New Ross to be a free port could not be neglected. I would not be so indulgent as to seek two free ports for County Wexford, but I suggest that one of the ports be given favourable consideration.

I would like to place on record that over the last number of years we got every assistance and encouragement from the officials in the Department of Communications especially the principal officer in the harbour section, Mr. Mortimer. I want to express our appreciation for his work but we ask him to resist the pressures from the Cork direction. Our weakness is that we do not have 20 Deputies, we have only five, and we are not getting the backing from Deputies in the south-east region to support our claim. When the Department are extending the free port facilities I hope those civil servants and that principal officer will be as sympathetic to us as they have been in the past.

Acting Chairman

The Minister is responsible, not the civil servants.

Mr. Yates

I appreciate that.

Acting Chairman

Please address your remarks through the Chair and to the Bill.

Mr. Yates

I ask that provisions in this Bill will not be tied up in red tape. There is no point in a customs and excise officer having a problem for every solution this Bill purports to put forward.

Rosslare port was established in 1906 and has served the country well. It is the third largest and fastest growing port in the country. Whether on the cargo or passenger side, it presents a unique opportunity, not to take business from Cork or from any other port, but to develop new Euro-business. When the new port authority is set up in Rosslare, I hope an application will be submitted and approval will be given for free port status.

Mr. Browne

I listened with interest to Deputy Yates. He is part of the Government and it is not enough for him to shout from the backbenches and say what the Minister should or should not have done.

Mr. Yates

Is the Deputy's party opposing this Bill?

Mr. Browne

The Deputy should have had enough clout to ensure that the Minister included Rosslare harbour in this Bill.

In his speech the Minister said there were no plans to establish any other free ports at the moment. I want to express concern that other areas were not included. It is obvious that Deputies have not had an input into the preparation of this Bill. Once again County Wexford and Rosslare harbour in particular have to take a back seat. This is a continuation of a lack of interest already shown by this Government over the past number of years in the plight of the unemployed in Wexford. I will come back to that point later.

I realise that every Deputy coming from a constituency with even the slightest semblance of a port will be looking for free port status, and I accept that for the Minister to sanction such applications willy nilly would be of no benefit to stimulating economic activity anywhere in the country. But having said that, I deplore the fact that Rosslare harbour was not looked at on its merits. Good luck to Ringaskiddy. We hear a lot of talk about Cork being devastated but solving the problems of Cork will not solve Wexford's problems. Later I will be putting forward a case for free port status for Rosslare harbour.

The determining of free port status should be based solely on geographical and economic grounds. Its transport, communications, strategically placed position to the EC and its link with the major nations of the world should also be taken into account. In England, after something like 45 applications the Government eventually decided to come down in favour of six. The general opinion there is that the concept of free ports is being held back by totally inflexible attitudes and too stringent regulations. I am led to believe that a team from the British Government are at present examining free port regulations with a view to relaxing the attitudes of customs and excise to make it more attractive for people interested in trading in such areas. Liverpool, it would seem, is the most successful. Regulations and rules there at customs level are far more flexible than in other areas.

Bringing in free port legislation is not enough. We must have a long term commitment with all the required flexibility essential for its proper functioning. There are more than 400 free ports throughout the world at present, many of them in under-developed countries. We are told that Miami is the most successful free port zone in the world. It is privately owned. Miami is geographically well placed for doing business with Europe and Latin America. There is a large cargo airport beside it, which is very much to its advantage. I hope the Minister will be prepared to look at Miami, Liverpool and the other successful free ports and be prepared to learn and make the legislation workable and free from bundles of red tape and bureaucracy.

The Minister outlined the pluses we will be claiming for free ports. The financial benefits will derive from deferred liability for customs duties and VAT. The Minister for Finance will have the task of determining the proposed VAT reliefs under the VAT Acts. Will the Minister for Finance adopt legislation in the liberal manner required to make free ports successful? Somehow I doubt it, knowing his Scrooge-like approach to investment in general.

Section 10 deals with financial inducements and we would need clarification of this area. If one looks at a number of businesses one will see that cash flow seems to be a major problem and is forcing many business to the wall. I would welcome any provision that would provide cash flow facilities. I would like to hear from the Minister about that. I am also concerned about section 3 which is giving unlimited powers to the Minister and needs further clarification because we might end up with too many political decisions being taken. Section 6 (2) deals with the licensee who does not comply with the regulations. Has he any right of appeal? On what grounds can he go back to the Minister? Under section 7 (1) the Minister has power to revoke the licence, but has the licence-holder any right of appeal against such revoking? There are other sections about which one could express reservations, but I am sure we will have another opportunity to discuss them on Committee Stage.

I will now come back to the reason why Ringaskiddy and not other locations was picked for free port status. Like Deputy Doyle, I feel the decision to look after Ringaskiddy was taken on political rather than geographical and commercial criteria. Fair play to the Deputies from Cork. It is obvious they have the political muscle to swing this free port status for Ringaskiddy, not like their Wexford colleagues who threw in the towel and abandoned the people of Wexford. In County Wexford at present we have the highest unemployment rate in the country — way above the national average at 25 per cent. However, we have had no task force for the county, no priority for the 8,000 unemployed there. Like Cork, Wexford has a litany of closures — Springs, National Aluminium, Barna Buildings, Beegman and the mushroom factory — one could go on and on naming the factories which closed.

It is now more than four years since a new foreign industry of any significance was established in County Wexford. This surely denotes the lack of recognition by this Government of Wexford's serious unemployment problem. The best efforts of the IDA have not been successful in reducing or containing the levels of unemployment or in achieving any increase in employment in County Wexford's extremely low industrial base.

Rosslare Harbour, the gateway to Europe, was the first port to seek free port status. How much serious consideration was given to the designation of Rosslare as a free port? How did the Government arrive at the conclusion that Ringaskiddy was more suitable? Deputies have talked about Cork being depressed, but Wexford is on its knees, reeling from the disastrous policies of this Government. There is a strong case for Rosslare. There is a high level of unemployment; Rosslare is the nearest port to Europe; CIE are committed to investing in it in the future; Wexford County Council have provided the infrastructure and it has a rail link to both Dublin and the south. In the Rosslare area we also have a large land bank available for development. Rosslare Harbour is now the second port to Dublin, in terms of trade value. In 1984, 11½ per cent of trade value throughput in our ports was through Rosslare Harbour, an increase of 4 per cent from 1980. If one compares that with Dublin where they have a decline of 8 per cent, it shows the value of Rosslare Harbour to the economy.

European markets are available now and Rosslare Harbour is surely the port to develop to avail of those markets. In 1984 Rosslare Harbour accounted for 16 per cent of the total exports coming through this country's sea ports, and 1,000,000 passengers a year pass through Rosslare which is a major boost to the tourist industry. All experts tell us that tourism will be the world's major industry at the end of the century. In Rosslare we are providing services which are benefiting the whole economy. The number of coaches coming through Rosslare has increased dramatically; we have a vibrant roll-on roll-off freight service and CIE, being the port authority, are investing £5 million in the future development of the port. Economically, commercially and on the grounds of high unemployment, Rosslare has all the criteria for free port status.

I assure the Minister that the people of Wexford are not prepared to accept anything less than that status for Rosslare Harbour in the future. Will the Minister seriously consider, even at this late stage, the inclusion of Rosslare Harbour with Ringaskiddy as a free port area? Such a free port would service the whole south-eastern region of Carlow, Kilkenny, Wexford and Waterford. It is a must that Rosslare be given the priority essential for the future of the whole south-eastern region.

Mr. L. Burke

It is important, now that this Bill has reached the House for all of us to work to ensure that the measure fulfils its potential. I have high hopes for it and I welcome it, not as a sop to Cork, but as a measure with marvellous opportunities for the whole country. It is something that I have been advocating for a long time and now that it is almost a reality I rejoice, but it is the rejoicing of a person who sees this only as the beginning and not the end. It is the rejoicing of a person who, when the concept of a free port for Cork was materialising, saw its advantages yet recognised its limits. It will not open everything up for us at once but for all that it is a great boost heralding what could be a new beginning for the port of Cork. What is good for the port is good for the city.

Having the finest natural harbour in Europe, having expended massive Government aid to bring that area into the era of the 21st century, it was only right and proper that Ringaskiddy should have been selected for the status of the country's first free port. It has, or will shortly have, all the modern facilities to make it possible to get the greatest value from this new venture, a deep water berth capable of docking the largest vessels, jetties and stores, etc. In coming to fruition it presents a challenge to all of us, to Cork Harbour commissioners who got all they asked for in the facilities provided there and for everybody concerned in re-establishing the region. We will have all the tools at our disposal, now let us use them. There are no more excuses. We will have, to a degree that did not seem possible a mere few years ago, more or less, everything we asked for. The crying and whingeing must stop. Our future is, basically, in our own hands.

This Bill will not solve everything at one stroke but it was the right thing to do. It is the right legislation at the right time. We have to work from there and I am particularly glad that Cork has been chosen to show its mettle in this regard. If a free port is going to work anywhere it is in Cork. As I have mentioned, the facilities are excellent and the site supreme. They are manifestly the best in the land — the hub of a Ringaskiddy industrial complex, the biggest and the best serviced in Ireland with natural gas laid on, water on tap by the millions of gallons and a massive development ideally appointed for heavy industry.

I am glad to note that the Minister has not yet determined the designation of the area encompassed within the free port. I appreciate that problem and acknowledge the difficulty. I am glad the Minister did not come to a premature decision in drawing these boundary lines. Such has been the expansion of the area, such is its potential, that the problems are readily apparent in this regard. I would like to make this public appeal to the Minister, as I have done in private meetings with him, to designate as big an area as possible looking beyond the immediate present. Otherwise a small initial area would have to be changed regularly with all the administrative hassle and uncertainty this would entail.

In conclusion and in endorsing the welcome for this Bill, in praising the initiative of the Minister and the Government in bringing forward this measure, I will repeat that it presents a challenge, which I know will be accepted by everyone who has the good and the future of Cork at heart. This Bill gives us no certainty that business will flow in and unhappily there are precedents for such failures. What it gives us is a unique opportunity to prove that what we long advocated can now be put to work. I am confident of the outcome.

Mr. Kirk

I am glad of the opportunity to contribute on this Bill. This legislation is of interest to Louth where we have three ports, Greenore, Dundalk and Drogheda. Greenore is a deep water port, a port which has developed tremendously in recent years. Greenore is privately owned and as such has not been eligible for any State assistance or grants towards its development. It is certainly a great bone of contention that the type of assistance available in other areas is not being provided to Greenore, simply because it is a privately owned port. We must see this decision by the Government in the context of the potential which exists in Greenore. Greenore port is the gateway to the sea for the north east region. It is the gateway from a county which, in recent years, has been devastated by industrial stagnation and everincreasing unemployment. We have somewhere in the region of 8,000 people unemployed at present, a figure which just a few years ago would have been unthinkable, yet one by one the long established, securely based industries have gone to the wall. By its very location and nature the county and the region generally has a considerable growth in population. People have gravitated towards Dundalk and County Louth for education for their families and in turn in search of employment when that education is completed. Sad to relate here in the Dáil, those employment opportunities are simply non-existent in County Louth at this time.

This legislation and the debate in the Dáil tonight afford us the opportunity to look at the potential that exists for the free port facility and to examine the possibilities in this legislation for County Louth. Having listened to some Deputies who contributed in the immediate past, one is entitled to ask how the decision was reached to allow Ringaskiddy to be declared a free port while there is no mention of other ports around the country? We must ask if the decision was based on the unemployment levels in the Cork region or on political clout in that region. If the decision was taken on the basis of unemployment levels, then a port in Louth must be next in line for being declared a free port. The percentage unemployment figures in Louth are as bad if not worse than those in any other county at this time. It is unacceptable that on the industrial base the plight of the unemployed in our county should continue to be ignored. In view of the fact that this is enabling legislation the Minister should examine immediately the possibility of declaring perhaps Greenore port a free port under this legislation after Ringaskiddy has had its share of the cake. Imagine the possibilities that that would open up for County Louth. It would give some encouragment and hope to those who are striving to make a living, to keep business in existence and to keep the doors of their factories and industries open.

I said in this House in the not too distant past that the possibility of establishing a special board or county authority should be examined immediately. Consider the possibilities that would open up for the infrastructural and industrial development not alone of Louth but of the counties right along the Border which have been devastated in recent years. Of all the counties along the Border, Louth has been the worst hit. We are the only county right along the Border from Omeath to Donegal that is not designated for industrial promotion purposes, and that has militated very seriously against County Louth recently where the demand for industries, large and small, is so great as is the pull from one region or another. It is inevitable that people who have investment to make will look at the packages that will be offered in different areas before they decide to locate.

I submitted a parliamentary question to the Minister for Industry, Trade, Commerce and Tourism a mere ten days ago and I was very interested in the reply. I wanted to know how many industrial itineraries visited the town of Dundalk in the last two years and I was amazed to find that 54 industrial itineraries went to that town and the net result of it is a mere few dozen jobs to be set up in the town.

An Leas-Cheann Comhairle

I appreciate that there is an employment factor in the Bill, but come back to the Free Ports Bill.

Mr. Kirk

I appreciate your concern that I might stray slightly from the Bill, nonetheless the relevance of the legislation to employment and employment creation——

An Leas-Cheann Comhairle

A passing reference is allowed but not a full speech.

Mr. Kirk

I hope that the Minister and the Government will have regard to what has happened in Dundalk and Louth generally and consider the possibility of declaring Greenore port a free port and that we can see it as being the gateway for the north-east region. We will see it as the gateway to an industrial zone in the Border areas that will work wonders for us.

I am not pretending that there are any easy solutions or answers to the unemployment problems in that area. Industries there have stood the test of time but time has caught up with them. The sort of process that should take place from within to ensure that adequate replacements for those industries would be forthcoming maybe did not happen. Take that in conjunction with the very considerable increase in the population in the area and it all adds up to a very serious problem. Let me come back to the question of the possibility of Greenore port being declared a free port and being a gateway for the north-east region. If a special development authority were to be set up in the Border counties the potential that would exist there would be considerable. I am not making merely a political point in the Dáil tonight. This is a worthwhile and serious suggestion and I ask the Government to consider it in the context of the very serious problems that we have. If the necessary measures are not taken it will remain with us for a very long time. I hope that when the Minister comes to reply he will consider the suggestions I have made, that he will examine their feasibility and, most important, if he feels that they are feasible he will expedite the move to ensure that it becomes a reality and that we who represent the constituency of Louth can say that some progress has been made for those who are weighed down by industrial and economic stagnation and so badly afflicted by unemployment.

Mr. Prendergast

I welcome the intent of the Bill in so far as it relates to the Government's intention to help the situation in Cork arising from their devastating experiences with the closure of Fords, Dunlops, Verolme Dockyard and others, but my concern — coming from Limerick which is the capital of the mid-west region and one of the regions which is developing most rapidly — is that an unanswerable case is established already for the creation of a free port on the Shannon estuary. So far, in spite of all the platitudes that have been uttered by successive Governments since the foundation of the State, there has been no great direct investment by any Government in the Shannon Estuary which is one of the great natural waterways of the world and a maritime asset of which any nation would be proud.

One would think that as an island nation we would be exploiting that resource to a greater degree than we have been doing. It is probably true to say that the only major development that has taken place on the estuary so far has been that by Aughinish Alumina Limited. That development is very welcome in that it created a very high quality of employment for more than 800 people. The ESB have also invested in Moneypoint creating one of the biggest power stations in the country. I welcome the grants paid through Alcan and other industries located on the estuary, but there has not been any direct Government investment.

I welcome the suggestion that we should appoint a Minister with responsibility for the development of marine and maritime resources because we should use those huge resources for the benefit of our people. Shannon Airport is the most successful duty free zone that has been created in Europe since the war. The estuary can benefit if use is made of the expertise of a semi-State body like SFADCo in the provision of a free port which could be linked to the airport complex. The current role of SFADCo is largely one of job creation. Its action at the start of the sixties in creating the Shannon industrial free zone was a counter to the threat that was there at the time and was concerned initially with the development of the airport rather than with the development of industry as such.

However, the zone's full significance became apparent in 1964 when for the first time industrial employment at the airport exceeded that related to aviation proper. Thereafter, the development of the industrial complex assumed an importance in its own right, although linked to the overall development of the airport. Over the years that industrial free zone has made steady progress and is the most successful in Europe since the war. In 1983 alone merchandise exports from the zone amounted to $240 million and of this nearly 70 per cent was exported to other EC member states, 14 per cent to North America and 18 per cent to other world markets.

It must be pointed out to the House, and to the vested interests in the tourist industry on the east coast, led by some prominent hoteliers who attack unfairly the track record of SFADCo, that the company has the capacity to develop a free port. In fact, representatives of SFADCo have gone all over the world helping to establish similar projects. Not alone are they helping the Third World but they are earning valuable revenue for the State and building up good relations for Ireland.

The Government should seriously consider establishing a free port in the area. An Opposition Member referred to the fact that in recent months he saw ships of 150,000 tonnes bringing in cargo. That type of business could be developed. I should like to give the House an example of how a city or region can benefit from the existence of a free port. The advantages of free ports were dealt with in an article in Business And Finance in May this year. Hamburg has become one of the major cities of the world because of the existence of a free port there. All shipping and goods traffic within the free port is free of customs and other duties and there are no formalities to restrict or hamper the flow of goods. Cargo can be loaded and unloaded, transported, stored in unlimited quantities for an unrestricted period of time, inspected, sampled and subjected to certain types of treatment during storage without any customs clearance or provision of security. Only when goods deemed to come from beyond the Community customs area leave the free port and international territory do they require customs clearance.

The west coast, especially the mid-west, has a special case to make because for the last 300 years the ports along that coast have been at a serious disadvantage vis-à-vis their counterparts on the east. If the east is developed any more, if Dublin keeps spreading, Ireland will topple over lopsided into the Irish Sea. Successive Governments have paid lip service to the idea of decentralisation and reversing the rural imbalance on the west coast. This is a glorious opportunity to rectify that and it can be done without in any way detracting from the right of Cork to its own free port such as that designated for Ringaskiddy.

Shortly we hope that the new Shannon Estuary port authority will be established. I imagine that one of its priorities will be the creation of a free port to link up with the existing duty free zone at Shannon Airport. That move is so logical that nobody could reasonably argue against it. It would help as an economic counter-balance to what is happening on the east coast. Such an authority is necessary because there is no cohesion of policy on the Shannon Estuary in relation to development. We cannot get an agreement on a unified port authority for the mid-west, but it is not hard to imagine the type of benefits that would flow from having one overall estuarial authority.

Two months ago industrialists visited Ireland at my invitation. I got in touch with them through a contact I had in the trade union movement. At the time they were considering doing something for Verolme Dockyard but decided against it and now intend to locate in the Foynes area on the Shannon Estuary. There is a potential for good worthwhile employment in that project and an investment of £10 million. There is plenty of money available from that organisation and negotiations to procure more have started. It does not take any great imagination to see what could be done if there was a free port on the Shannon Estuary. It is the finest and safest deep water estuary in Europe and I hope the Government will see fit, as a logical follow on, to create this new port authority for the Shannon Estuary so that it can qualify for EC grants. Ideally, it should lock in with Shannon Airport using the proven expertise and track record of the people involved in the region.

Every aspect of the Shannon development has been exploited, creating small industries, bringing in service industries, developing tourism, inducing high technology people into the area, the creation of pilot schemes for food processing which has limitless potential for employment. If all that is not kept tapped, we are criminally negligent as a Government and as a people. One can see what could happen with a combination of the airport, one of the finest international airports in Europe, and the free port which I am advocating in the Shannon Estuary. Think of what that would mean to the people not alone in the mid-west and along the west coast, but in the whole country.

People in Limerick can remember cycling to Shannon Airport to shoot snipe or grouse on Sundays 30 years ago. One could not count 20 houses between the city and Bunratty and there would be another 40 between that and Shannon Airport. The people had left that region, either to go to Dublin, if they were lucky enough to have completed their education to Leaving Certificate standard, to get a job in the Garda or the Civil Service. The rest emigrated. Tremendous work has been done in that area. However, there is huge scope as yet untapped and undeveloped for the creation of a free port to link in with the Shannon development zone. Such a link exists already in other areas within the EC. I see no logical reason for the Government not giving the strongest consideration to that and I urge them to do so.

Mr. McGahon

With due respect to the pretty young Deputy on my right, I am not going to shed any tears for her region, the Cork region. While in recent times that area has had traumatic experiences, over the past 20 years it has been stuffed with industry because of political expendiency. That has been the order of the day in relation to Cork. I am speaking on behalf of the forgotten area of Ireland, 50 miles to the north, although some Ministers do not seem to know where it is, the forgotten area of County Louth.

Mr. Kirk

They visited it a few times.

Mr. McGahon

This was illustrated by Deputy Kirk.

Mr. Nealon

I worked there and I played football for The Gaels.

Mr. McGahon

They did not win anything when the Minister of State was there. I want to state the case for County Louth. There is no area as economically deprived or as devastated as that area. It has borne the brunt of the Ulster troubles. No town, North or South, has been so grievously hurt or deprived as Dundalk. Last week we saw the collapse of the last remaining industry there, Dundalk Engineering Works. This industry was a profit making concern which gave employment to 320 people. This collapse came about because of the collapse of the parent company in Brooklyn. That is an example of what is happening in Dundalk. Now there are more people in the public sector than in the manufacturing industry. In addition, we have to watch the spectacle of convoys of cars, buses and trains——

An Leas-Cheann Comhairle

Are you going to recommend the Free Ports Bill?

Mr. McGahon

——crossing the Border, with the result that Dundalk has turned into a receiver's graveyard. Most of its hotels are occupied by the staff of receivers. That is the only activity going on in my town.

I commend to the Minister and the Government the attractions of the Greenore area. Greenore would be an ideal venue for a joint operation, North and South, a hands across the Border operation, creating an international free port in the waters of Carlingford Lough. The recent Anglo-Irish Agreement heightens the attractions of that type of operation. Carlingford Lough is a deep water area, ideally located for a venture such as this. The great success of the signing of the Anglo-Irish Agreement affords a tremendous opportunity in this connection. I have no doubt such a joint North-South operation would have the full support of the EC.

We are talking about an area which has been identified already by the Community's Economic and Social Council as being the most deprived area in Europe, according to their report published in February, 1984. The case for Government compensatory measures for my area is undeniable. For the past 17 years we have gradually been withering and we are now on the point of extinction. This is an ideal opportunity to create an area to which industry can be attracted. The free port could be built in the centre of the lough. In those 17 years this area has not had any help from any Government. I cannot defend my own Government's record in the recent past. It is no better and no worse than that of the Fianna Fáil administration. The time has come for action. Various Government Ministers have recognised the problem but we are not interested in recognition — we want action. I commend the port of Greenore to the Minister as an ideal venue.

Miss M. Barry

I have to disagree with Deputy McGahon. I know that he goes north for his holidays but we had better bring him on a trip down south very soon. The whole area of Cork is suffering from a severe depression. I want to make the case for one area tonight that is, Cobh harbour. Over the past couple of years Verolme dockyard closed down, putting 1,200 people out of work. There have been redundancies at Irish Steel, Maritime Industries have closed down and Cobh is like a ghost town. Yet it has probably the best harbour, not only in Ireland but perhaps in Europe, at Verolme. I am recommending to the Minister that that deep sea port area should be made a free port area.

This would enhance dramatically the value of Verolme itself to a buyer, to the people who live there and to everybody concerned. I could see it then going from strength to strength. There is no doubt that, with the development of off-shore licensing and so forth, of off-shore resources and facilities, some place will have to be found in the southern region where such attendant work can be carried out. The ideal place for this would be a new Verolme situation of a free port area.

The quay area in Cobh could also be made a free port area. I know that the Minister has received several requests concerning other ports, but to my mind many of these have been with regard to very large regions such as the Shannon estuary. I am not suggesting that the whole town be made a free port area. There are no jobs there; there is utter despair on the faces and in the minds of everybody in Cobh. I recommend that Cobh become the first free port area after Ringaskiddy.

Mr. Crowley

I want to make one or two brief points on this Bill. First, I welcome the Bill because I believe it constitutes a step forward in the Governments commitment to Cork and Cork county. The overspill from this free port will be of tremendous benefit not alone to Cork city and to Cobh, about which Deputy M. Barry spoke, but to the whole of the area and can do nothing but good. It will create an environment for employment which is badly needed in the area. With the control of interest rates and inflation this country is becoming a more satisfactory place to which industrialists can look for the creation of industry, the building of factories and so on. For that reason also I believe this free port will contribute in a fairly substantial way.

However, I do not believe the establishment of this free port will see the end to our problems; it could well augur the beginning of some. Unless we can compete in the marketing of this free port all around the world then, in itself, it will not have been worth the time spent discussing it in this House. A decision will have to be made on who will undertake that marketing function, whether it should be the IDA, the Cork Harbour Board, a combination of those and others, but we must compete with the English, the Americans and some continentals. Indeed, not alone must we compete but beat them at marketing. We should be able to do so in our current economic climate. The amount of money spent around Ringaskiddy, the Cork Harbour Board area, by this Government has been tremendous particularly in recent years, on roads, housing and so on. There is the deep water berth costing £10 million which is to be completed next year. These are all facilities on which we can now build. They will be of tremendous importance and value to the development of that free port.

One must make reference also to the educational facilities now provided in Cork city which are as good if not better than any to be found elsewhere. There is the regional technical college, AnCO, UCC and the other specialised areas of education which mean we can now provide young educated people who are as good, if not better than any to be found elsewhere. We must harness that resource effectively. If we do not do so, if we do not ensure that the value of this free port is marketed satisfactorily, then we will be back to nought.

The establishment of this free port was first mooted as a result of a report commissioned by the Government. This was one of their recommendations. They said this would contribute in a substantial way to alleviating unemployment in Cork. I hope the Minister will give this proposal his undivided attention so that this free port will be established rapidly. The question has been raised as to who will manage this facility once it is in existence. I understand that the Minister has invited suggestions from various people. It is important that it be done by a group of people. For example, I believe the Cork Harbour Board should be involved. Private industry and industrialists should be involved. I would contend that the Government should also have a finger in this, though I say that with some reluctance because over the years Governments have tended to become too involved in too many things. Perhaps if we handed over some to private enterprise they might do somewhat better. Also the time has arrived when we must allow people to put their money into projects because, in so doing, they will work somewhat harder. This would be in sharp contrast to what somebody said here this morning about people coming from abroad with airline tickets in cases, receiving VIP treatment, the suggestion being that some of our people were not receiving such treatment. Perhaps we should turn the tide back somewhat and encourage our people to develop somewhat more. If the establishment of this free port relieves some of the bureaucracy and red tape obtaining, in itself that will have been a major step forward. I believe the environment is right for it to do more than that and I wish it well.

Minister of State at the Department of Communications (Mr. Nealon)

I thank Deputies very much for their contributions. I have been gratified to see the general welcome given the Bill. I was made quite conscious of the fact that many Deputies on all sides of the House would have given the Bill an even greater welcome had it specified their port as being at the top of the queue instead of Ringaskiddy, as is the proposal at present.

I should emphasise, and this is a point that has been overlooked, that this is an enabling Bill which, when enacted, will render possible the establishment of a free port anywhere in the country. Of course, such free ports in order to be successful must have some natural, manmade or other advantages that will attract business. A free port, unable to attract business, will be of no use. However, I should warn that whether in Ringaskiddy or anywhere else, a free port should not be regarded as a panacea for all ills. Also it would be counter-productive if there was to be a proliferation of free ports all over the country. Therefore, we need to give the matter careful consideration. We need to watch closely developments in Ringaskiddy before rushing into other areas. There are a number of limitations to a free port operation, many deriving from the fact that we now belong to the EC. We cannot be compared with Third World countries as such because we have at present the common customs tariff throughout the EC.

As I said at the outset, I do not expect Ringaskiddy to be an overnight success. The United Kingdom experiment is a very sobering one because only one of their free ports has been what might be considered a substantial success. As Deputies pointed out, we need to examine very closely what happened there.

Once the free port at Ringaskiddy has been established I know other areas will be putting their act together with a view to making submissions, promoting their causes, but I would recommend that we hasten slowly so that we can learn along the way. There is potential there but not a panacea for all ills and nobody is endeavouring to hype it up as such.

Debate adjourned.

An Leas-Cheann Comhairle

Before we proceed with Private Members' Business, motion No. 39, resumed, the Minister of State at the Department of the Taoiseach, Deputy Barrett (Dún Laoghaire), wishes to announce an order.