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Port Development.

Dáil Éireann Debate, Tuesday - 8 February 2005

Tuesday, 8 February 2005

Questions (144)

Kathleen Lynch

Question:

153 Ms Lynch asked the Minister for Communications, Marine and Natural Resources the main elements of the new ports policy framework launched recently; the reason the decision has been made to encourage more private investment in ports and to use State funds only as a last resort; his views on whether ports play a crucial role in the wider economy; and if they play such a role, if they should merit increased public investment; and if he will make a statement on the matter. [3584/05]

View answer

Written answers

The Government's ports policy statement was launched on 6 January 2005. It is available to view on the Department's website. The policy aims to better equip the port sector and its stakeholders to meet national and regional capacity and service needs through: better transport policy co-ordination; clearer and more focused commercial mandates for the ports and their boards; reform of the structure of port boards; encouragement of private sector investment and involvement; sanction for the use of non-core assets to fund new port development but not to mask inefficiencies; encouragement of healthy competitive conditions within and between ports; better consultation and dispute resolution between port companies and users through appropriate information sharing and arbitration mechanisms; and encouragement of mergers where a business case exists.

Ireland, as an island, is dependent on sea-borne trade and the economic significance and importance of our ports to the prosperity of the country is self-evident. Given our small open economy, Ireland's international competitiveness is central to overall economic performance.

Our ports are vital gateways for commercial freight and sea passengers. This is highlighted by the fact that nine of the ten commercial State port companies are located in areas identified as gateways in the national spatial strategy. Almost all Ireland's overseas trade goes by sea, underlining the commercial significance of ports and their strategic importance.

Measured by volume, 99% of the island's foreign trade uses the maritime supply chain. It is estimated that the value of these imports and exports through seaports in the Republic is €130 billion for 2003, compared with a figure of €7 to €10 billion through airports. By contrast, the situation is different in terms of passenger numbers with some 20% of the tourists who visited Ireland in 2003 having arrived via our seaports.

Most of the ports are State-owned companies with statutory commercial mandates and operational criteria. The port companies are required to take all proper measures for the management, control, operation and development of their harbours and are required to conduct their business at all times in a cost-effective and efficient manner. This has led to a strong independence of action and a focused commercial mindset.

The Government expects that the port companies, as commercial entities, should be capable of funding their operations and infrastructure requirements without relying on Exchequer support. The port companies are, therefore, encouraged to seek financial assistance from other avenues such as private sector investment within ports.

One of the key challenges ahead is the timely provision of adequate in-time port capacity. The internal resources of our commercial ports are not sufficient in general to fund large-scale infrastructure projects. This is a significant challenge in view of the need for additional capacity at our ports over the coming years, particularly to cater for the growth in unitised trade. The Department is initially consulting with the commercial ports concerned to determine their view of port capacity and how they intend to deal with the projected capacity requirement.

The Department is interested in key projects identified by the commercial ports as essential to deal with anticipated capacity deficiencies to 2014 and beyond, and whether the ports see these being funded from their own resources or in partnership with the private sector. The policy framework encourages all port sector stakeholders to address capacity provision. The State will support capacity provision, as residual financier, but only if proven essential to progress identified high quality self-sustaining projects.

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