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Harbours and Piers.

Dáil Éireann Debate, Thursday - 16 December 2004

Thursday, 16 December 2004

Questions (115)

Jim O'Keeffe

Question:

112 Mr. J. O’Keeffe asked the Minister for Communications, Marine and Natural Resources if work will commence on the new pier at Bantry in west Cork. [34027/04]

View answer

Written answers

I refer the Deputy to the replies to Question No. 137 on 13 October 2004, Question No. 95 on 21 October 2004 and Question No. 243 on 17 November 2004 giving the up-to-date position as regards the pier development proposed by Bantry Bay Harbour Commissioners, which I will outline again.

On 6 September 2004 a meeting took place between the commissioners and the former Minister of State at the Department, Deputy Browne. Following the meeting, the Minister of State wrote to the commissioners setting out his understanding of the outcome of the meeting and of how to ensure that the dialogue between the Department and the commissioners can be progressed in the future on a positive basis. The letter reiterated that the interruption in the dialogue between the Department and the commissioners and the referral of the matter to the Attorney General was a direct consequence of the unilateral decision by the commissioners to sign a contract in March 2002 for the construction of the pier. This occurred while discussions with the Department on the viability of the project were ongoing.

The Department has received advice from the Attorney General on the proposed pier development. However, no decisions have been taken by the Department on foot of this advice on the contract entered into by the commissioners.

The former Minister of State's letter further indicated that from the discussions which had taken place, it appeared the commissioners believed the business environment for the project had shifted from that originally envisaged. The projected costs had escalated since the consideration of Exchequer support of €1.9 million by the former Minister of State, Deputy Fahey. Furthermore, no progress appeared to have been made on the conditions contained in the former Minister of State's letter of 15 May 2002, which expressly instructed the commissioners not to enter into any contractual commitments pending a report on progress on two stipulated conditions. These conditions relate to negotiations with the terminal operator.

The former Minister of State proposed in his letter to the commissioners that the project be reviewed in terms of its viability, the financial implications for the commissioners of increased borrowings for the project due to its escalated cost and the risks to the project posed by the dominant position of the terminal operator. To this end, the Department has invited the commissioners to submit for consideration a fully detailed updated proposal for the project, including a business plan with financial tables.

The proposed course set out is a sound basis for progressing the matter and I look forward to the Department receiving for consideration the updated proposal from the commissioners in due course. I would like to clarify that consideration of any updated proposal from the commissioners by the Department in due course will be subject to the availability of funding.

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