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Dáil Éireann díospóireacht -
Thursday, 25 Nov 1999

Vol. 511 No. 5

Ceisteanna–Questions. Priority Questions. - Port Development.

Michael Finucane

Ceist:

1 Mr. Finucane asked the Minister for the Marine and Natural Resources his objectives in having a report commissioned for the review of the ports in the Shannon Estuary; the way in which his decision was influenced; if his attention has been drawn to the fact that the ports in the estuary from March 1997 have a separate commercial mandate; the plans, if any, he has to change that mandate; and if he will make a statement on the matter. [24815/99]

The independent consultancy review I have initiated is of the operations and structure of the major State ports operating in the Shannon Estuary, namely, Foynes Port Company and Shannon Estuary Ports Company. The review will focus on whether changes in operational-management structures might significantly benefit port users and generate increased trade, industrial growth and employment for the benefit of the region as a whole. I am convinced that if there are strong commercial or developmental advantages to changing the present structures, these should be brought into the public domain and clearly identified.

It is time to take a critical look at the real potential of the ports industry in the Shannon Estuary, which has to compete on a commercial basis with larger ports. There is tremendous scope for further industrial and commercial development of the Shannon Estuary and its hinterland which will generate jobs and economic growth in the area. We must ensure that the estuary is served by port structures which are dynamic and focused in order to drive development forward and to act as a magnet for new shipping business. I see significant scope to develop further the national assets of the Shannon Estuary to meet their full potential for transhipment, tourism and cruise liner business.

In deciding to initiate this review, I have borne in mind recommendations contained in a number of expert reports commissioned by my Department which suggest that a merging of the two ports would provide a cost effective, competitive and dynamic platform for development. Other interested bodies such as the Institute of Master Mariners and IBEC have supported rationalisation. My Department has also examined the current structure of and relationship between the ports in the estuary in the context of its corporate governance function and identified potential for improvements. In light of these views and to ensure that every means of maximising port and ancillary activity in the estuary is appraised, it is essential that an objective, professional and inclusive review of current structures is carried out as soon as possible.

Both port companies have identical, not separate, commercial mandates and statutory objectives for the management, control, operation and development of facilities and must conduct business at all times in a cost effective and efficient manner. The independent review will be fully inclusive and will involve a wide-ranging consultation process encompassing all interests, including port users, employee and employer representatives, State development agencies and shipping-transport interests. I particularly wish to determine whether the existing multi-port arrange ment is meeting user needs or if a stronger more focused and dynamic port organisation or grouping of ports could provide a better and more cost effective service. I am keen to establish whether stakeholders consider a unified port entity or a confederation of ports would give a better platform to develop new initiatives and enhance the socio-economic development of the estuary and region.

This review came as a bolt from the blue. The ports were designated commercial semi-State ports only in 1997. There is a perception that the Minister wishes to amalgamate Foynes and the Shannon Estuary Ports Company and is using the review as a mechanism. All relevant information is already available. The Minister said IBEC is in favour of rationalisation. Does he see a bias on the part of the chairman of the Foynes Port Company who is an IBEC nominee? Is the Minister aware of the concern in Foynes about the uncertainty this review has created in a port which is progressing rapidly? The last thing the Minister should seek is confrontation after the issues which arose in recent times.

The process of development and improvement is ongoing and my Department has a statutory responsibility to ensure it continues. The estuary has a great deal of potential. A review of the ports was carried out and the report was published recently. I met the port authorities and made it clear that I do not mind what way they set about achieving the best results for the Shannon Estuary. They can work together or find effective ways of co-operating or they can federate in one way or other or amalgamate. The question is whether there is potential for better development. It is one of the best harbours in the world but it is not getting the turnover that would be typical of such a harbour. I am anxious to ensure that, one way or other, its potential is realised.

There are plenty of reports. In 1979 the estuary was described as the jewel of the western world. Transhipment has been floated previously. Con Power chaired a committee, established by the former Taoiseach, Deputy Albert Reynolds, on the estuary. The Minister is creating a degree of uncertainty which is unnecessary. There are officials in the Department who, for a long time, wanted this amalgamation and they see the review as the means of achieving it.

There may be individuals in various quarters who might see amalgamation as a desirable objective for the Shannon Estuary. However, the results of this study, when they are available, will be transparent and everybody can make their views known. Shannon Estuary is not, for example, getting its share of the cruise liners. Why is this happening and what can be done to ensure that it gets its share?

It is not necessary to amalgamate two ports to achieve that.

It is possible that if they worked together to promote the Shannon Estuary, they might do more towards achieving it. I do not know the answer. That is the reason for carrying out the review. Nobody need feel threatened. This is an age in which people should not feel threatened by matters such as this. It is an age of transparency when people can study these things and see if there is anything of benefit for them. If there is, well and good. However, nothing will happen over anybody's head so they need not be concerned.

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