In November 2002, the joint committee hosted a delegation from the Chilean Parliament and the discussion centred on the dumping of salmon as it affected the EU, including Ireland, and Norway. At the meeting a general invitation was issued to the Chairman to visit Chile to see the Chilean salmon farming industry at first hand. On 5 November 2003, following a "Prime Time" programme in October, the joint committee conducted a review of the aquaculture industry. This progressed to the point where, at the joint committee meeting of 9 February 2005, a sub-committee on salmon drift netting, draft netting and angling was set up. This sub-committee held a full-day hearing on 5 April, engaging all parties to the salmon debate.
As part of the process of completing a report, the joint committee agreed to accept the invitation to visit Chile to see the salmon aquaculture industry at first hand. This was considered particularly timely as, on 22 April, the Minister of State at the Department of Communications, Marine and Natural Resources, Deputy Gallagher, welcomed the European Commission's agreement to initiate trade defence anti-dumping measures against Norwegian imports of farmed salmon. These are in the form of ad valorem duties to be applied to Norwegian imports to the Community, ranging between 6.8% and 24.5%. The measures came into effect on Wednesday, 27 April 2005.
On 6 January 2005, the Minister of State launched the Government's ports policy statement. He said the policy would provide the framework for the efficient operation of Irish ports. Ports have clear commercial mandates and the challenge for them is to realise their full commercial potential so they can provide adequate infrastructure and services to meet customer needs. Following this, the joint committee, at its meeting of 9 February 2005, commenced its process of scrutinising COM (2004) 654, a proposal for a directive of the European Parliament and the Council on market access to port services. At the meeting, IBEC expressed its grave concerns in regard to the proposed directive, particularly in regard to the duration of authorisations as contained in Article 12. Having regard to this concern and the Government's policy statement on ports, and in light of the capacity and expansion issues facing both Cork Port and Dublin Port, together with the proposal to build a new Drogheda port to be sited in Balbriggan, the committee considered it prudent to visit the Argentinian port of Buenos Aires, which has recently reclaimed 32 hectares, and the port of Rosario, the primary bulk shipping port of Argentina. To augment this work, the committee agreed to examine the Argentinian energy sector, having particular regard to renewables and grid construction and renewal.
The Government's new ports policy statement, in conjunction with COM (2004) 654, has major implications for Ireland as both Dublin and Cork ports are at capacity. The vast majority of all Irish imports and exports go through the ports system and therefore the Irish ports are vital to the economy.
The expansion of Dublin Port can only be achieved by reclaiming land and this is being objected to on environmental grounds. Both Cork Port and Dublin Port deal with bulk liquid and solids and container traffic.
Buenos Aires has the same capacity problems as Dublin and has expanded by reclaiming 30 hectares. Buenos Aires Port mainly deals with container traffic, while Rosario Port deals with bulks, grain and liquids. The committee wanted to see, in the context of an expanded Dublin Port or a new port for Drogheda sited in Balbriggan, if Ireland should dedicate one port for bulks, like Rosario, and one port for containers, like Buenos Aires, if there are economies, management or infrastructural issues to be addressed and if a green field option allowing both bulk and container traffic should be considered.
In the context of COM (2004) 654, which is of concern to IBEC, the committee was keen to examine the concession model used in Argentina. This model came about when legislation was introduced in 1992 that allowed ports to be taken out of state operation. Since then, 13 years have elapsed and it was timely to see how this model has worked. Chile has also set up a concession model but this is a more recent development.
Argentina has a unique profile in terms of the fuel mix and grid infrastructure for energy. A total of 25% of the population live in 2% of the country and Argentina generates over 50% of its electricity from hydroelectric sources. It is noted that Latin America produces 22% of the world's hydropower. Argentina has a potential huge wind resource in Patagonia, and with a sub-tropical climate in the north, photovoltaic energy can be generated.
Owing to the recent economic climate and the currency crisis, Argentina has not made any major investment in its national grid, but is now proposing such an investment. In Ireland the ESB is investing €3 billion in strengthening and renewing the national grid. Therefore, it is timely to see how Argentina is accommodating renewable energy in its grid structure. The new north-south and east-west distribution network work on the Argentine grid will accommodate renewables, a matter that is debatable in the case of the ESB.
Argentina has a better fuel mix than Ireland and is probably the only country to commission a new nuclear generating plant in 2005. Its energy comes from a mix of nuclear, wind, oil, gas and hydroelectric sources. Argentina, with soya production running at over 70 million tonnes, proposes to have 3% of the energy mix come from biofuels and this will have a major impact on the energy demand from the transport sector, particularly when 25% of the population lives in 2% of the country.
Ireland's energy mix is out of balance compared to world and EU norms. EU levels run at carbon fuel usage in the 50-60% range and several EU countries, such as France, have a nuclear generating capacity, with renewables such as hydroelectricity in the Nordic countries and photovoltaic energy in the Mediterranean countries adding to the mix. In Ireland we have an 87% dependency on carbon fuels for both generation and transport and our position at the end of the supply chain is a serious cause for concern.
The national development plan provided a strong Government support framework for the development of aquaculture in Ireland up to 2006. In particular, the aquaculture measure of the NDP provides Exchequer and EU grant supports amounting to €30.7 million for the development of aquaculture projects over the life of the plan. Under the measure, Irish farmed salmon production is targeted to increase from 18,000 tonnes in 2000 to 38,000 tonnes in 2006. In reality, however, in 2004 production will run out at just over 14,000 tonnes and for 2005 it is anticipated that the industry will only produce 12,000 tonnes.
In terms of State and EU investment, and considering the hold that salmon has on the Irish psyche, it was vital that the delegation examine the salmon industry in Chile. It should be noted that in 1980 the production of farmed salmon in Chile was 50 tonnes and by 2004 this had increased to the point where Chile is now the largest producer of farmed salmon in the world, with production running at in excess of 750,000 tonnes. Considering the foregoing, it was essential that the delegation see the Chilean salmon farming industry first hand and so accepted the invitation of the Chilean Parliamentary Committee for Fishing and Aquaculture to meet and exchange views relevant to both countries.
Valparaiso is the largest port on the western seaboard in South America, a gateway access for Argentine and Chilean produce to Far East markets. As with Argentina, which in 1992 introduced legislation to permit the privatisation of its state-run ports system by way of the concession model, Chile took the same route in 2002. For the delegation it was illustrative to see, compare and contrast the two models in the context of the proposed EU directive in COM (2004) 654, which we are currently considering.
I will give the joint committee a summary report of the work undertaken during the visit to Argentina and Chile. It is important to note that we had 25 formal and informal meetings and engagements with the different public and state bodies.
Our first public engagement was at the Browne Institute. This was important in the light of next year being the 150th anniversary of the death of Admiral Browne, a native of Foxford in County Mayo and revered by the Argentines as the founder of the Argentine Navy. The delegation received a tour of the Browne museum and a presentation on the Irish-Argentine celebrations that are planned to mark the event, which will include a visit by a vessel from the Irish Naval Service.
The next visit was to the Hurling Club of Buenos Aires. This is one of the most important links for the Irish-Argentine community. The last St. Patrick's Day celebration saw over 1,200 people join in the club celebrations. While the club no longer plays hurling — it ceased during World War II as hurleys could not be imported from Ireland — the club maintains its strong Irish connections and now caters for the youth of the area by providing rugby and hockey facilities. In Argentina, 400,000 people claim Irish descent and want stronger ties with Ireland.
The delegation had a private meeting with Dr. Carlos Contepomi and through Deputy Perry, at the request of Mr. John Scannlon, visited St. Brendan's College. This was arranged as the scheduled meetings were re-scheduled owing to the High Court ruling on the Judge Curtin appeal, which is related to the work of the sub-committee chaired by Deputy O'Donovan, a member of the delegation.
Accompanied by the ambassador, we had a meeting with Señor Blanco and the Parliamentary Committee on Energy and Fuels. This meeting and the tour of the Department was scheduled to last one hour, but in the event it lasted over three hours.
There was a meeting with Señor Paragati, Director of Development, Secretaria of Energy, and this dealt with the work that Argentina is doing on developing biofuels. Argentina exports over 70 million tonnes of soya and the committee was apprised of the projects being supported to develop biofuels. The target is that by 2010 Argentina will produce 3% of its fuel from biofuel sources. As over 25% of the population live in less than 2% of the land mass, and as this is centred in Buenos Aires, this would be considered a huge advance for biofuels which, by virtue of this synergy, would have a major impact on the transport sector.
We held a meeting with Señor Leguiza, Director of Planning, Secretaria of Energy. The meeting dealt with the work that Argentina is doing on developing and renewing its electricity grid. Over 50% of electricity is from hydroelectricity, but with over 25% of the population living in less than 2% of the land mass, the distribution grid and transmission grid are no longer capable of supporting economic development. Owing to the recent economic and currency crises Argentina has not made the necessary investment in the grid infrastructure and this is now being addressed in the development of a north-south and east-west axis for the transmission grid, together with interconnections to Brazil that would deliver up to 4,200 megawatts. This was very informative in terms of the €3 billion investment being made by the ESB. However, in Argentina the grid infrastructure, both transmission and distribution, is being developed on the basis of being able to take renewable energy sources. This may be a function of the fact that Argentina has a land mass greater than the 25 member states of the EU, in which instance a grid of such magnitude could accommodate greater wind energy variability.
The delegation had a private meeting with Professor of Economics Robert A. Mundell of Columbia University, Nobel Laureate in Economics in 1999. We then travelled 300 km to the port of Rosario and met with ENAPRO, the port authority for Rosario. The delegation met the president of the port authority of Puerto Rosario, Mr. Juan Carlos Venesia, Dr. Juan Carlos Retamero and Ms. Zulma Dinelli. Mr. Venesia gave a presentation on the public private structure and work of the port and took the delegation on a tour of the public port facilities.
Rosario port deals mainly with bulks, namely, grain and liquids, and has very little dealing with containers. At Terminal Puerto Rosario private port facility in Rosario, operated under a concession, Mr. Guillermo Salazar Boero, president of Terminal Puerto Rosario, gave the delegation a presentation on how, as a concession holder, it operates within the port. This was followed by a tour of the private port facilities.
The delegation returned to Buenos Aires for a buffet dinner with members of the Argentine-Irish Community hosted by the ambassador, Mr. Ken Thompson, and Mrs. Thompson. As this is the largest Irish community in the non-English speaking world, this was considered a valuable function linking Ireland with the Irish-Argentinian community.
There was a meeting with Buenos Aires port officials and the general manager, Mr. José A. Carrea, who gave the delegation a presentation on the public private structure and work of the port and took the delegation on a tour of the public port facilities. The port of Buenos Aires deals mainly with containers and a small amount of bulk grain and liquids. However, the port also deals with cruise ships and has a passenger terminal.
The delegation met with Terminales Portuarias Argentinas, TPA, a private port facility operated under a concession from the port of Buenos Aires. Captain Ricardo H. Ferrera gave a presentation to the delegation on the TPA operation of the port, including its passenger terminal. TPA operates as part of the P&O worldwide operation. This was followed by a tour of the port and passenger terminal.
The delegation had a private meeting with Antonio J. Zuidwijk on his experience of port administration and a separate private meeting with Mr. Pat O'Leary of Liebherr Cranes Ltd., a Killarney-based company which employs 400 people and which exports container cranes worldwide, with sales worth €18 million to Argentina to date. At that time it was installing a new crane worth €5 million.
On Sunday lunchtime the delegation travelled to Puerto Montt via Santiago arriving in Puerto Montt at 9 p.m. At a meeting with Salmon Chile, Ms Zorzano gave a presentation to the delegation on the work of Salmon Chile and how the salmon farming industry was developed in Chile. There was a meeting with Ms Soledad Zorzano, ProChile, the government support agency that leads the export drive for Chilean manufactured products. This is based in the tenth region of Chile, of which Puerto Montt is capital, and is dominated by the salmon industry.
The delegation visited the AquaChile salmon processing facility, which combines hatcheries, farming and processing. This one processing facility handles 45,000 tonnes of salmon per annum, three times the annual Irish production. This was a very impressive sight. The facilities are the best the delegation has seen, including the fish processing facilities which the delegation saw some weeks previously in Killybegs. Mr. Christian Meyer and Mr. Alfonso Marquez de la Plata made a presentation to the delegation on AquaChile and gave the delegation a tour of the processing facility which employs over 400 on two shifts over five and a half days totalling 44 hours per week, per worker.
The delegation paid a courtesy call to the Mayor of Puerto Montt, Mr. Rabin Dranat Quinteres, and met with Wavemaster Chile, which manufactures fish cages used in the aquaculture industry, and is in partnership with Wavemaster Ireland based in Meath. The partnership has proved so successful that in the last five years, since the partnership was formed, Wavemaster Chile has developed its market share from 5% or 10% to 70%. Brothers Roberto and Renato Salas made a presentation to the delegation on Wavemaster Chile and took the delegation on the tour of their manufacturing facility which employs over 100 people.
At lunchtime the delegation travelled to Santiago. At 8 a.m. the next morning the delegation drove to Valparaiso and met with parliament's fisheries and aquaculture committee. This meeting was scheduled for one hour but the discussion ranged over the full fishing industry including the commercial fishing industry, the aquaculture industry and common interests such as stock management and control. The meeting lasted over two and half hours.
Following this, the delegation met the president of the senate and members of the senate fisheries committee. The president of the senate hosted lunch in honour of the delegation, the first parliamentary delegation ever to visit the parliament since it was established in Valparaiso. This was followed by a tour of the parliament. The following morning the delegation met port of Valparaiso director, Mr. Enrique Morales, who made a presentation to the delegation on the public private structure for port administration used in Chile and the work of Valparaiso port. Following this, the delegation toured the public port facilities and the passenger terminal. Valparaiso port deals mainly with containers and is the major exporting port for Chile and Argentina as it can access the Far East markets.
In the afternoon the delegation visit the private Terminal Pacifico Sud port facility, licensed under concession from the Port of Valparaiso. Mr. Duncan Glass, general manager, gave a presentation to the delegation which was followed by a tour of the port facility. The following morning the delegation drove to Santiago and that afternoon had a meeting with the subsecretario de telecommunicaciones, Mr. Christian Nicolai, and Mr. Pablo Bello Arellano, director of regulation. Under Chilean administration the subsecretario, at ministerial level, is appointed by the President as the "head" of a department. This meeting was very informative as it covered the difficulties that Chile was having in the provision of the telephony services, including broadband and mobile services, to a country that has such a low and disparate population density — the similarities to Ireland being obvious, particularly in regard to the digital divide. Last year this committee discussed the roll-out of broadband and produced a report on the subject in March 2004.
At noon on Saturday the delegation departed Santiago to return to Ireland. I now propose that we invite the Chilean and Argentinian ambassadors to discuss some of the issues that arose during our visit to their countries and which will assist us in formulating our final report on this important visit.
This will also give the media a better understanding of the parliamentary exchanges with countries which have established diplomatic and trade links with Ireland. I also propose that, through both ambassadors we formally extend an invitation to the committee on energy and gas of the Argentinian Parliament and to the committee on fisheries in the Chilean Parliament to visit Ireland and to meet this committee to discuss matters of mutual benefit.
