Dáil Éireann díospóireacht -
Tuesday, 15 Oct 1996

Vol. 470 No. 1

Written Answers. - Drogheda (Louth) Proposed Port Project.

Michael Bell

Ceist:

309 Mr. Bell asked the Minister for the Marine the preconditions, if any, set for the grant of EU funding or the raising of a bank loan by the Drogheda Port Authority regarding the proposed new port project for Drogheda, County Louth; if the EU have set any preconditions regarding EU funding; if so, if he will give details of any such preconditions set down by his Department or the EU; if any such preconditions as communicated to the port's Chief Executive Officer included the drawing up of a proposed legal contract between the port authority and the dockers workforce none of whom are employed by the port authority; his views on whether any such proposed document of agreement on the future operation of the port or the conditions of employment of these dockers will be implemented in view of the fact that they are not employees of the port authority; the way in which any such directions and preconditions were communicated to the port authority by him or by officials from his Department; and if he will make a statement on the matter. [18466/96]

Minister for the Marine (Mr. Barrett)

The European Commission's views and observations on the proposed Development Project at Drogheda were conveyed, in a letter on 2 August 1996 from officials of my Department, to the Chief executive officer of Drogheda Harbour Commissioners. These views were arrived at following consideration of the detailed evaluation of the project prepared by the External Evaluator for the monitoring committee of the Operational Programme for Transport — OPT. While the Commission recognise that a strong case could be made for supporting the proposed investments at Drogheda, there are a number of issues which they believe need to be addressed before a positive decision can be taken to grant aid the project. In particular the port charges at Drogheda are, they believe, excessive — in relation to those pertaining at other Irish ports — and the Commission doubt if these charges can become competitive without fundamental changes to the present costs structure.

The Commission has informed my Department that it can only agree to co-finance the proposed investment in Drogheda if the following changes are put in place: the ending of existing dock labour arrangements and their replacement with labour practices which will yield costs comparable to those at neighbouring ports in the Republic of Ireland and in Northern Ireland; 2. and end to any arrangements which may restrict competition between stevedores; 3. the opening of the port to new stevedores; 4. the freedom for own-account operators to do business for third parties; and 5. adequate measures to control the port authorities own costs and charges.

The conditions do not specifically provided for the drawing up of a legal contract. Compliance with the conditions is, however, entirely a matter for Drogheda Harbour Commissioners. Evidence will be sought by both my Department and the European Commission that the requisite changes have been made before any final decision to co-finance the project is taken.

The investment proposed for Drogheda Port must fulfil the basic criteria and objectives of the Operational Programme for Transport, the overriding objective of which is to focus on measures which will assist in improving competitiveness and expanding the capacity of the internationally traded sectors of the economy. In the case of ports, this should result in a more efficient and cost effective service for exports. One of the aims of the programme is to ensure that the benefits of subsidised investments are passed on to end users. The Programme also strives to promote increased competition between ports.