Where do I start? Senator Daly was right in saying that the legislation gives a new mandate or lease of life to the main ports in the country. It is not simply a question of dressing up the existing harbours structure and commissioners in a new title, format and so on. It is actually a new departure in the administration of our ports and there is a good reason for it. The reason is simply that we are an island and we conduct over 90 per cent of our trade through our sea ports. We depend on good shipping services and efficient ports in order that goods, passenger traffic, tourism, etc. can get on and off this island.
It is fair to say that over the years there was a certain amount of criticism of the way in which the ports had been run. Certain concerns were raised, for example, about restrictive practices, which did not always apply to those restrictive practices which were alleged to have occurred on the dockside by the dock labourers or whatever. There were concerns also, as Senator Cregan stated, about restrictive practices in what was perceived to be the control of some ports by a small number of interests and, in some cases, by individuals. For that reason the Government of the day established the Murphy review group to examine the entire ports system and make recommendations, the outcome of which is the legislation before us.
The group recommended that the larger ports be established on a different basis than the harbour commissioners. As we know, the harbour commissioners have provision for the control of ports by boards which had as many as 29 members drawn from different sectoral interests. I am sure this made a lot of sense in 1946, but in 1995, in a situation where the economy must compete so aggressively in the European market and under the demands of industry, tourism, etc., that needed to be changed.
What we are creating in this legislation is a different type of body to that of the old harbour commissioners. These are companies and they will have a commercial mandate. They will not be subsidised. I know Senator Cregan, in another contribution, expressed concerned about Dublin in particular, which he seemed to think would end up with considerable State largesse. That will not be the case. We have made provision in the legislation to protect the pension rights of pensioners and employees of port companies as is proper; but it is being made clear to the companies that they must trade commercially, make ends meet and trade in the commercial world. For example, any question or concern there might be of some kind of sweetheart deal between a port company and a port user would clearly not be possible because the port company will be driven by the commercial requirement to make ends meet.
The objects of the company which are set out in the Bill are set out deliberately in a general way because we want to give the maximum freedom to the ports, and the type of activity which they are engaged in will vary from port to port. Activities mentioned in the course of contributions, which included fishing and the protection of salmon, underlies the fact that they will vary from port to port. Ports will be different. They will be competing with each other. What will happen in Dún Laoghaire — the mix of tourist traffic through the carferry, leisure use, etc. — will be different from what will happen in Waterford, for example, which involves mainly container traffic and freight. In turn, that will be different from what ports at Galway, Limerick or Foynes might be doing. It is important therefore that the objects provide the maximum degree of flexibility possible to the companies.
The dreaded subsection (2) is, I suppose, the catchall. Anything which is not encompassed in the general object set out in the previous one can be written into the articles of association, which again is to provide the maximum degree of flexibility possible.
Accountability is set out in section 10, which states that the memorandum of association has to be approved of by the Minister with the consent of the Minister for Finance. The companies are being given the freedom but at the same time accountability is being provided for in the legislation.
A number of Senators raised the issue of accountability. There are a number of provisions in this Bill which will require the companies to be accountable. First, the board of directors of the company are appointed by the Minister and can be removed by him if they are not carrying our their functions properly. Second, not only will they be governed by the provisions of this Act but also by the requirements of the companies legislation, because they will now be companies. Third, as they are State companies, they will come under the aegis of, and be held accountable by, the Oireachtas Joint Committee on Commercial State-Sponsored Bodies. There is also provision for the performance audit, which was referred to by some Members. The companies will be audited not only on their simple financial affairs, but also as to how they are meeting the objects set out in the articles of association.
There is a requirement, which is new to legislation of this type, that in addition to the annual report the companies will have to make, the chairperson of the company will also have to make a confidential report to the Minister on the company's plans, how it is performing, what land it is acquiring, what business it is getting into etc. For example, Senator Lee raised the issue of the appropriation of part of a harbour to the exclusive use of any person or persons. This provision makes it clear that this is on payment of charges the company deems reasonable.
For example, there are a number of shipping services in Dublin port which require certain facilities to be provided for them, such as terminals etc. It is open to a port company to enter into an arrangement with a shipping company or a user of a port to provide certain facilities. In some cases companies, for understandable reasons, will want to have exclusive use of that facility, but they will have to pay for it. The disposal of any assets of the company, such as disposal or leasing of land etc., is provided for in section 15, which explicitly provides that they have to get a price that is not less than the open market value of the land. There are also provisions built in where independent valuations etc. have to be obtained.
We are attempting to set up vibrant companies providing efficient services to their users, contributing to the national and local economies in which they are located and operating on a different basis to the way in which harbours have developed up to now. But at the same time they will be accountable as public bodies and there are a number of provisions built into the legislation which underscore that.
