Dáil Éireann Debate, Wednesday - 22 November 2017
38. Deputy James Browne asked the Minister for Transport, Tourism and Sport if he has contacted his British counterpart regarding the ownership of Rosslare Europort, County Wexford; and if he will make a statement on the matter. [48307/17]
Amharc ar fhreagraHas the Minister contacted his British counterpart regarding the ownership of Rosslare Europort; and will he make a statement on the matter?
I thank the Deputy for his question. I have not specifically contacted my UK counterpart in relation to the ownership of Rosslare Europort. The Deputy is aware that Rosslare Europort is unique among State-owned ports as it is not a commercial company operating under the Harbours Acts but, rather, is operated as a division of Iarnród Éireann. Technically the port forms part of the Fishguard and Rosslare Railways and Harbours Company which is a 19th century joint venture company currently comprising Iarnród Éireann on the Irish side and Stena Line on the Fishguard side in Wales. Each partner is wholly responsible for its own area of operations and liable for financial liabilities and profits associated with its part of the company but the overarching company structure still exists.
The status of the port and whether that potentially inhibits its development was most recently considered in a strategic review commissioned by my Department and carried out by Indecon economic consultants. The report concluded that the creation of an independent port authority would be extremely difficult because of the port's complex legal structure. Instead, it was recommended that the port remain in public ownership and that the possibilities for increased private sector involvement be investigated.
Iarnród Éireann's engaged consultants to assess market interest in order to assist in its consideration of how best to move the matter forward. The assessment was largely positive in terms of the potential for increased private sector investment in the port but identified possible implementation issues due to the complicated legislative basis of the port. Following the assessment, my Department sought and received detailed advice from the Office of the Attorney General on the matter which identified a number of legal issues with any such proposal. Those issues remain under consideration by my Department.
As the Minister rightly points out, the ownership situation of Rosslare Europort is historically complicated. Effective ownership is held by the British and Irish Governments, with two operators over the port. The Government should seek to engage with the British Government to decouple Fishguard from Rosslare Europort because the current ownership is significantly inhibiting the development of Rosslare Europort. It must be unique for a rail operator to control a port. In terms of the port management, some €2.34 million profit was made by Rosslare Europort in 2015 but that was funnelled out of the port and into Iarnród Éireann to subsidise other aspects of the company. Such profits should be retained by Rosslare Europort to develop the harbour and particularly so in light of Brexit. What are the Minister's thoughts on preparing ports such as Rosslare Europort for Brexit and also in terms of its ownership situation?
It has been over four years since the Indecon review into Rosslare harbour was presented to the Minister's Department but it has only recently become available for public viewing, although it is mostly redacted. Nothing has changed during those four years in terms of how Rosslare Europort operates nor how the Department has approached its ownership and management. The key recommendation of the Indecon report was option five, which concerns the potential to develop a long-term concession agreement for the port. A steering committee was set up but four years later nothing has happened. Rosslare is the only port or airport in the country that is served by a rail link. More vessels arrive annually there than in any port in the country except Dublin. That is the situation prior to Brexit. However, the Department does not seem to have any idea how to develop the port or stop it from falling into disrepair.
I point out to Deputy Wallace that the most recent audited financial results from Iarnród Éireann for 2016 show the Rosslare Europort division made a surplus after tax of almost €2.5 million.
In spite of the Government, not because of it.
That is what it managed to do.
Where is that money going? Where is it being invested?
Irish Ports operate as an independent commercial company and planning and preparation for Brexit are operational matters for the ports. I am planning to soon meet my British counterparts and I undertake to Deputy Browne that I will raise the issue with them. As the Deputy said, it is a complicated historic issue that might have to eventually be resolved by way of simultaneous legislation in Ireland and the UK. The situation is very complicated. It should not be so but is because of its historic nature. I will raise the matter because there are serious and historic matters involved. If Chris Grayling is there, I will raise it with him and otherwise I will raise it with whoever is at the December meeting of the Commission.
I thank the Minister. He is correct that it will probably require legislation in both jurisdictions to resolve the matter. Seamus Brennan looked into the issue when he was Minister. The Minister might ask his officials to look back over the files in that regard. Rosslare Europort has massive potential. However, 80% of volume of goods currently going to the continent go over the UK land bridge and if there is a hard Brexit there will be tailbacks in the port. It needs to be developed to meet those demands. The profits being made by Rosslare Europort to which the Minister referred are being funnelled out of the port into Iarnród Éireann. At the very minimum, Irish Rail should develop a separate, stand-alone company to develop the port in order that profits are kept there and it can be developed as a stand-alone entity.
I acknowledge the importance of the port. It is in Deputy Browne's constituency. It is the second biggest sea port in the State in terms of ship movements, tourist traffic and unitised freight.
Despite what was said here, revenue is up 1% overall year on year at €10.6 million reflecting a 4.5% increase in passenger cars and a 4.3% increase in roll-on roll-off freight units, while the importation of trade vehicles and light commercial vehicles was up 8.3%. Obviously, the effect of Brexit could be very dramatic on this port and is something which is worthy of being addressed at the next meeting with the British Cabinet Secretary.
Before we take the final question I remind Deputies that if they had stuck to the time limit, the Minister would have answered an additional three questions. A total of 20 minutes was lost by people going over time.
