Marine Minister Pat the Cope Gallagher today launched the Governments Ports Policy Statement 2005.  The Minister said that the policy statement aimed to better equip the port sector and its stakeholders in order to meet national and regional capacity and service needs through:

*Clearer and more focussed commercial mandates for the ports and their Boards.

* Enhancing Board performance through reform of the structure of port Boards.

* An urgent search for good, viable projects to ensure that we do not suffer from capacity shortfalls.

* Exchequer funding of major projects where necessary.

* Encouragement of private sector investment and involvement.

* Sanction for the use of non-core assets to fund new port development but not to mask inefficiencies.

* Encouragement of healthy competitive conditions within and between ports.

* Better consultation and dispute resolution between port companies and users through appropriate information sharing and arbitration mechanisms.

* Encouragement of mergers where a business case exists.

* Better transport policy coordination.

Minister Gallagher said, The policy outlined here today will provide the framework for the efficient operation of our ports into the future.  There are a number of areas which we must address to achieve this.  Ports have clear commercial mandates and the challenge for them is to realise their full commercial potential so that they can provide adequate infrastructure and services to meet customer needs.

The Minister added, To enable ports to achieve these goals the correct supports must be in place.  We will also ensure that the future direction of our ports involves the input of the port users and all relevant stakeholders.

The Marine Minister said that one of the key challenges that lay ahead was the timely provision of adequate in-time port capacity.  The internal resources of our commercial ports are not sufficient in general to fund large-scale infrastructure projects. This is a significant challenge in view of the need for additional capacity at our ports over the coming years, particularly for unitised trade.  The Government will part-fund such projects where own or private sector resources are insufficient to deliver on the capacity requirements for the growing Irish economy.

Minister Gallagher said that his Department will consult with the commercial ports concerned to determine their view of port capacity and how they intend to deal with the projected capacity needs. 

In this regard, the Department would seek to identify the key projects proposed by the commercial ports as essential to deal with anticipated capacity deficiencies to 2007 and beyond, and would establish whether the ports see these being funded from their own resources or in partnership with the private sector.

Minister Gallagher concluded, The policy framework will encourage all port sector stakeholders to address capacity provision. The State will support capacity provision, as residual financier, but only if proven essential to progress identified high quality self-sustaining projects.

Note to Editors
Key Points of Ports Policy Statement Evolution of Irish Ports
The State ports have evolved from being essentially public utilities with unclear mandates to entities with clear commercial mandates.  They are generally regarded as being operationally efficient.  Private sector involvement in providing services within the ports has increased.

Commercial Role for Port Companies
Current policy is to require the ports to operate commercially, without Exchequer support, and to provide adequate capacity for the future needs of the economy.

Port Company Boards
Board members should have the appropriate mix of competencies and skills to contribute to advancing the business and corporate governance of the company.  Local authority representation will be reduced to one, staff representation will be confined to one and user representation will cease.  A panel of appropriately skilled potential Board member candidates will be established.

Seaport Capacity and Funding
A requirement for additional seaport capacity is predicted in the period up to 2014, with a particular emphasis on the growing unitised trade sector. Given long lead-in times and the need to have in-time capacity in place, it is essential that a policy framework within which to identify, fund and progress any new capacity additions be put in place as soon as possible.  The Minister envisages urgent consultation with ports and private sector providers on capacity needs and plans, and thereafter, identification of a small number of high quality projects aimed at providing the required capacity. Clearly, not all proposals are likely to proceed.

Integrated Transport Policy
Coordination with the Department of Transport will be intensified in order to ensure effective integration of transport policy across all modes.

Competition
Competitive conditions are present within and between ports.  The Minister will seek to ensure that future capacity constraints do not lead to dominant or monopolistic conditions.

Regulation
The Minister considers that there is an insufficient case for the extension of an economic regulator to the port sector.  He intends, however, that disputes between port stakeholders and the port will be addressed to an arbitrator whose opinion will be binding.

Mergers
The Minister sees groupings and partnerships of ports as options to reduce costs, create synergies and improve marketing and critical mass.  The Minister will expect and be supportive of any considered proposals from ports in this regard.

Privatisation
The potential and strategic significance of the ports varies between one port and another.  The Minister intends to maintain an open mind on privatisation of port ownership and will seek to maximise private sector involvement in the ports, including funding.

Consultation with Port Users
The Minister is committed to ensuring that change at the policy/strategy level is designed, implemented and progressed in full consultation with relevant stakeholders.  He intends to instruct ports to ensure that a forum exists within each port for local users to voice their views and concerns.