I move: "That the Bill be now read a Second Time."
I am very pleased as Minister for the Marine to have the opportunity to initiate this Bill to set up a single development authority for the Shannon estuary which, for obvious reasons, is of special interest to me.
The purpose of the Bill is to establish a new body to be known as the Shannon Estuary Development Corporation and to define their functions, powers and jurisdiction. The corporation will have a mandate to promote, co-ordinate and develop investment in marine-related industrial, tourist, recreational and amenity facilities and to encourage activities likely to contribute to the realisation of the marine potential of the Shannon estuary. They will also take over, manage and operate the existing harbours at Limerick, Foynes and Kilrush. The corporation will have jurisdiction over the entire waters of the Shannon estuary from Sarsfield Bridge in Limerick to the sea at Kerry Head - Loop Head.
The principal provisions of the Bill are to be found in the following sections: section 3 which provides for the establishment of the proposed Shannon Estuary Development Corporation; section 4 which sets out the functions of the proposed corporation and the parameters of their spending and borrowing as a development agency; and section 5 which defines the area within which the proposed corporation will have responsibility. This area, as I have said, covers the estuarial waters of the river Shannon and includes Limerick harbour, Foynes harbour and Cappa pier. Section 6 provides for the location of the corporation's headquarters at Foynes. Section 8 sets out the membership of the corporation and the method of appointment of members and provides that members other than local authority members must have expertise in finance, commerce, shipping, law or management, Sections 14 and 15 provide for the transfer of staff from the present authorities for Limerick, Foynes and Kilrush harbours to the new corporation and for the preservation of their terms and conditions of service and pension rights.
As Deputies are no doubt aware, this is not the first occasion on which proposals for the setting up of a single authority for the Shannon estuary have been put before this House. The concept of a single estuarial authority has been under discussion for a period in excess of twenty years and has received the support of almost all Ministers who have been responsible for commercial harbours during that time. Successive Ministers have had extensive negotiations with the various interests involved over the last ten to twelve years. Bills providing for a single harbour authority for the estuary were introduced in 1977 and 1986, but lapsed on the dissolution of the Dáil in those years.
I consider the establishment of a single estuarial authority as vital to the development of the unique potential of the estuary. The estuary is a large natural resource and it should be managed and marketed as such. It has not been developed to its full potential to date; such development as has taken place has been as a piecemeal operation in different places and by different organisations with no overall co-ordinated approach. Despite this, developments, particularly those in more recent years, have confirmed the enormous potential of the estuary for industry and services requiring deepwater facilities. These developments, which include the ESB coal burning station at Moneypoint, the alumina project at Aughinish, as well as the oil jetty near Shannon Airport, have resulted in the total tonnage of goods through the Shannon estuary increasing from 1.467 million in 1982 to 5.219 million in 1987.
The estuary has outstanding advantages. Its unique maritime capability provides opportunities for industrial development almost without equal in Europe. It has the capacity with minimal dredging to handle bulk cargo vessels of 400,000 dwt. which only three other sheltered harbours in Europe can accommodate. It is not affected by congested or shallow approaches, shortage of land or labour or the environmental constraints imposed by the proximity of large centres of population.
The thinking behind the setting up of the Department of the Marine in relation to harbour development was to bring all harbour works under the one administrative and planning umbrella, whether commercial, fishery or recreational. Since my appointment as first Minister for the Marine, I have been reviewing strategies with a view to more rational and integrated planning of harbour development. Among the ideas considered was extension of the composition, brief and responsibility of traditional harbour authorities. I see the role of a harbour authority as extending beyond the mere management and operation of their harbour to the extent that it should complement the work of other development agencies in an area. The Bill you now have before you is a product of this review and will, I hope, be the base from which further industrial and commercial activities will be attracted to the Shannon estuary area in the future. I see this Authority in the constitutional and functional sense as providing a model for the establishment of similar authorities for other portal areas.
The main advantages that can be expected from the establishment of the development corporation for the Shannon estuary are that it will bring about a more cohesive approach to the future planning, development and promotion of the estuary; facilitate further development of the estuary's already illustrated advantages through the pooling of the capital resources and planning of its harbours; help to avoid costly duplication of facilities and services leading to better deployment of financial resources; and enhance the case for EC and Exchequer grants for infrastructural development.
Since becoming Minister, I have had prolonged and detailed discussions with the various interests in the region. Special efforts have been made by me to get a consensus among the parties in favour of a single authority. Time will prove that being part of a single authority, having access to a larger pool of resources, including financial resources to aid further development, will provide all regions on the estuary with more opportunities than handicaps. I am convinced that a Shannon Authority without Foynes would be meaningless and I am accordingly proposing to include Foynes harbour within the scope of the new Bill from the outset.
I have decided that the headquarters of the new corporation should be located at Foynes. I have done this partly in recognition of the achievements of Foynes harbour to date, partly to indicate that the setting up of the corporation is not intended to deprive Foynes of its present status as a progressive port, but mainly because I consider Foynes an ideal central location on the estuary from which the corporation can become a dynamic instrument for maritime economic development in the area.
I am aware that certain aspects of this Bill have aroused controversy, particularly the question of the size and composition of the proposed corporation. Various reasons have been advanced to me, for instance, why one region should be given greater representation than another. To work efficiently and effectively, the corporation need a significantly smaller membership than existing major harbour authorities which have a membership of up to 27. It is for this reason that in section 8 of the Bill I am setting the total membership of the board at 13, which I consider the most efficient sized board consistent with adequate provision being made for a wide variety of interests along the estuary. In order to ensure that the right calibre of person is appointed, I have also included a provision that members will be required to have wide experience of, or capacity in, finance, commerce, shipping, law or management.
Provision is made for one member each from Kerry, Clare and Limerick County Councils and from Limerick Corporation. SFADCo will have one member, port users two members and Foynes interests two members in recognition of that harbour's importance for the successful operation of the corporation. I will appoint all members of the board and will also appoint one of the 13 as chairman.
Reference has also been made to the fact that all the small piers on the estuary are not being brought under the control of the corporation, that overlapping between the corporation and other development agencies in the region will result and that the future of existing staff is not adequately protected.
The Harbours Bill, 1986 provided for the transfer of a number of small public piers in the estuary to the proposed new authority. The piers in question were Clarecastle, Saleen, Kilteery and Tarbert. Other small public piers on the estuary e.g. Kildysart, Killimer, Glin were not, however, being transferred. None of the small piers in question has any commercial importance, save that the Shannon car ferry operates between Killimer and Tarbert. It was a condition of Exchequer assistance that the ferry terminal facilities would be under the control of the respective county councils. There is provision under section 134 of the Harbours Act, 1946 whereby they could be transferred to the corporation at a later date should circumstances so warrant. For the present, I have excluded them from the Bill.
The development powers being conferred on the new corporation are expressed to apply only to the area within its jurisdiction where such development would be considered a normal function. Marine-related facilities cover a wide area such as shipbuilding, yacht or boat chartering, operation of marinas, aquaculture, fishing and water sports, not all of which would affect trade through the ports of the estuary. The corporation will be primarily concerned with the promotion of the estuary in relation to its suitability for certain activities. If their promotional efforts succeed in attracting a prospective developer, the relevant State agency would then become involved. The presence of a SFADCo member on the board will ensure that promotional activity will be undertaken without diffusion of effort. My colleagues, the Minister for Industry and Commerce and the Minister for Finance, agree with me on this. Furthermore, to ensure that port users' money is not used for activities other than commercial harbour activities, the Bill includes a provision that any investment in other marine related facilities will require my consent which will only be given if the proposed investment is capable of achieving a commercially acceptable rate of return.
With regard to the fears of existing staff of the harbour authorities about their future, let me state that the normal policy in regard to a reorganisation involving employees is to ensure that the status and conditions of the employees concerned suffers no diminution in consequence of the implementation of reorganisation plans. There is provision for this in the Bill. Accordingly there is no reason for Deputies to be concerned about the existing staff of the harbour authorities being transferred to the corporation.
I consider the corporation, as proposed, to be the appropriate type of body to manage the estuary into the next century. I have no doubt that in due course local interests in the estuary will appreciate that sensible compromises have to be made in establishing a body like the Shannon Estuary Development Corporation and that the new corporation will eventually attract the full support of all local bodies. I hope this Bill will command the support of this House and that the launching of the corporation will give further impetus to the already impressive growth of the estuary.
Since the Bill was first circulated to Deputies amendments mainly of a techincal nature have been proposed and I will be introducing these at Committee Stage.
In conclusion, I see the establishment of the proposed corporation as the first step in a rational and integrated planning of harbour development to ensure that resources available are used in a way which will ensure maximum return to the State and I am confident that it will serve as a catalyst to generate employment and increase the general prosperity of the area.
In the context of the Harbours Act, 1946 — the legislative code under which commercial harbours operate — I consider that the initiative I am taking is innovative both in the constitutional and functional aspects of harbours. I have realised for some time that harbours which tended in the past to be seen only as locations for commercial port activity in the strict sense have potential of another kind in the areas of tourist attraction and job creation. I have for this reason taken the unusual step of broadening the remit of the Shannon Estuary Development Corporation to include the promotion and development of marine related industrial, tourism, recreational and amenity facilities.
I must be certain that our ports are properly geared in physical and in financial terms to face the challenges of 1992 and Ireland's relative isolation from the rest of the European Community arising from the expected completion of the Channel Tunnel in 1993. Where ancillary activities such as marine recreation add to the assets of the Shannon Estuary Development Corporation they will help to ensure is financial prepartions for the challenges of the 1990s.
While the purpose of this Bill is related to the Shannon Estuary, it reflects my thinking in relation to the constitutional and functional roles of commercial harbours generally. I have already set in train a review of the Harbours Act, 1946, and the practical application of what is proposed in the present Bill before the House will be invaluable in farming the new blueprint for commercial harbours generally,
I commend the Bill to the House.
