Dáil Éireann Debate, Wednesday - 17 June 2015
8. Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport his views on concerns over corporate governance standards at Dún Laoghaire Harbour Company in County Dublin, and the financial viability of a €67.5 million plan to revitalise the harbour; and if he will make a statement on the matter. [23474/15]
View answerIn light of recent revelations in the Sunday Business Post obtained through freedom of information requests relating to the financial viability of a €67.5 million plan to revitalise the harbour at Dún Laoghaire and other concerns raised by people in the Minister's Department about the corporate governance of that entity, could he provide us with the background to that story and whatever information he might have?
I have a number of statutory responsibilities as regards corporate governance oversight of our State commercial port companies under both the harbours Acts and the code of practice for the governance of State bodies. These include the requirements in the Acts that a company seek ministerial consent in relation to certain specific activities, such as the establishment of any subsidiary company; borrowings; and certain investments in undertakings, other than a subsidiary, greater than €1.27 million. In addition, the code of practice requires ministerial consent for any "action which would extend or change significantly the nature, scope or scale of activities in which it ... engages" and also where any joint venture is proposed.
As the Deputy has noted, as part of its development masterplan, Dún Laoghaire Harbour Company has a number of projects at different stages of conception or delivery, some of which require ministerial consent and some of which do not. Both my predecessor and I have previously raised concerns in regard to the company's timely adherence to their obligations in this regard. However, I recently had a constructive meeting with members of the board of the company in which I outlined clearly my position on these projects and I have subsequently written to the company highlighting its reporting obligations in respect of them.
The Minister is confirming what we already know through freedom of information letters, which disclosed that the Dún Laoghaire harbour board had failed to obtain ministerial consent for certain activities prior to commencement. Can we take it as a fact that the Minister or his predecessor has refused to give consent for certain activities?
Could the Minister also advise regarding an issue that was flagged by a civil servant in October 2014, namely, concerns around the sustainability of the company's corporate plan, which included a €50 million diaspora centre, a cruise-liner berth at a price tag of €15 million and a €2.5 million urban beach? I will quote from that letter, which said that "our consideration of this latest revised plan has increased departmental concerns as regards the company's approach towards managing the short- and medium-term sustainability of the company as a whole". Could the Minister bring us up to date on those revelations? He has stated that he has met with certain directors or certain people in the company. Is he now happy that the proposals the Dún Laoghaire Harbour Company has in place are sustainable and viable? Is he happy that the appropriate corporate governance is in place and being adhered to?
I have met the officers of the management team and board in Dún Laoghaire on a number of occasions to discuss matters of interest to my Department and matters in which we have a very clearly defined role.
With regard to the Deputy's specific question on the nature of my ministerial consent, which question I want to answer, I have written to the chairman of Dún Laoghaire Harbour Company and informed him that my consent for what is known as the St. Michael's plaza project is not forthcoming based on how the project is currently presented to me. The port faces very changed circumstances as a result of the withdrawal of operators and other issues. What we are doing is engaging with the company on its corporate plan. There are a number of projects in that plan. Some require my ministerial consent and others do not. I have made clear our position on the St. Michael's plaza project and I am now engaging with the company on other projects it is proposing.
I recognise what the Minister is saying, namely, that there are aspects of the company's plan that require ministerial consent and others that do not, and that the company can proceed as it so wishes. Let me ask the Minister an embracing question in this regard. In light of his discussions with the board of management and his recognition of what he can and cannot do regarding decisions or consent, is he happy in general with the state of operations at Dún Laoghaire Harbour? Is he happy with the approach of management and his engagement with the board? Does he feel comfortable with the board's understanding of his concerns? Is management taking the appropriate action to ensure the viability of the operation? Is the Minister assured that management's approach to corporate governance is adequate? Does he believe the relationship between the Department and the company is what it should be based on the role he has outlined?
The Deputy referred to other projects and I want to outline the position on these in the interest of clarity. With regard to the urban beach project, my ministerial consent is not required. Similarly, it is not required for developments for the cruise facilities. My consent is required for the diaspora centre and I have already told the Deputy my views on St. Michael's pier. These are the various building blocks of the key projects that are under way.
On the Deputy's broad question on whether I am happy with Dún Laoghaire Port, the team in the port, let alone my Department, is facing great challenges and is working hard to come up with a plan for the sustainable development of the port. That is why I meet the team regularly.
On the questions the Deputy asked, I am very confident that the company is extremely clear about my views on the future development of the port, where my consent is needed and the role of my Department in projects the port is considering. I am satisfied that the company is very clear on the feedback and on how we will seek to work together in the future.
