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Ports Development

Dáil Éireann Debate, Thursday - 19 December 2013

Thursday, 19 December 2013

Questions (17)

Seán Kyne

Question:

17. Deputy Seán Kyne asked the Minister for Transport, Tourism and Sport if he will provide an update on the implementation of the ports policy; if his attention has been drawn to concerns that the designation of certain ports as ports of regional significance may inadvertently negatively impact on the ability of port companies to raise finance for port development plans; and when he intends to bring in legislation to facilitate the transfer of ports of regional significance to the relevant local authorities. [54332/13]

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Written answers

The core objective of National Ports Policy is to facilitate a competitive and effective market for maritime transport services. The long-term international trend in ports and shipping is toward increased consolidation of resources in order to achieve optimum efficiencies of scale. This has knock-on effects in terms of vessel size, the depths of water required at ports and the type and scale of port hinterland transport connections. The National Ports Policy aims to ensure that Ireland can adapt to these international trends. Ports differ greatly in size, in current capability and future potential. The previous structure in place was a laissez-faire policy where ‘one size fits all’. This is no longer appropriate. As the Deputy will appreciate, treating Wicklow Port Company and Dublin Port Company as the same in legislative and policy terms is absurd. At the core of the National Ports Policy was the introduction of a clear categorisation of the ports sector into:

- Ports of National Significance (Tier 1);

- Ports of National Significance (Tier 2); and

- Ports of Regional Significance.

The purpose of this categorisation is to help provide clarity to the sector as to future developments and ensure that the goals of individual ports are aligned to those of their shareholder. It recognise reality rather than trying to create a new reality that does not exist. Therefore, the five ports that primarily have a national function and are responsible collectively for over 90% of all trade into and out of our ports, will remain under the shareholding of the Department of Transport, Tourism and Sport. Ports that have a regional purpose, be it as regional transport hubs or in relation to maritime tourism, marine leisure or public amenity will be transferred to local authority control.

Officials have commenced drafting proposals of the Heads of a new Ports Bill that will allow for Ports of Regional Significance to be transferred to local authority control. The officials have met with stakeholders including ports, local authorities and others to discuss the proposed transfer arrangements and they will continue to engage with stakeholders as drafting of the Heads progresses.

As the Deputy is aware, Ports are self-financing and it is not intention that the transfer of any of these ports will adversely impact on any port's future developments. Indeed, the transfer is intended to strengthen future developments in the Ports of Regional Significance as they will now be clearly aligned with regional interests through local authority ownership. It is my experience that companies, be they state owned or private sector, that wish to raise finance need a robust, credible business case to convince potential investors that there will be a return on investment for them (i.e. that the revenues for any development will exceed the costs within a reasonable timeframe). Such a business case is a pre-requisite to securing investment and in its absence, anything else is an aside.

In relation to other work on the National Ports Policy, a strategic review of Rosslare Europort has been completed and I expect to be able to make recommendations on the report very shortly. A review of New Ross Port Company within the context of National Ports Policy has also been completed and its conclusions have been accepted by the Company who have commenced implementation.

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