Minister wants to look at port privatisation

The Minister for the Marine, Mr Dermot Ahern, has said that any revenue accrued from privatising the State's ports would "clearly…

The Minister for the Marine, Mr Dermot Ahern, has said that any revenue accrued from privatising the State's ports would "clearly be attractive". Lorna Siggins, Marine Correspondent, reports.

The Minister has also proposed appointing a regulator or an ombudsman to ensure "fair and full competition" among ports. He outlined his views yesterday when he published two Government-commissioned studies of ports commissioned by the previous administration.

Both reports were due to be released on his department's website, but were not accessible at time of going to press.

The High Level Review of Ports, which was commissioned by the department and the Irish Ports Association, advises against privatisation. It recommends amalgamation of ports in several areas - such as Galway and Rossaveal in Co Galway, and Cork and Bantry in Co Cork.

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This review was carried out by Raymond Burke Consultancy, Posford Haskoning Consulting Engineers and Farrell Grant Sparks Corporate Finance.

A separate Port Estates Task Force recommends transferring ownership of non-trading ports to local authorities, and examines other options for use of properties around harbour areas.

The Minister said yesterday he intended to initiate a "full public consultation" on the findings of both studies, and issued his own seven-page "consultation foreword" in which he outlined his views.

He noted that the current ownership of ports was "deeply embedded" in the State sector, with 10 harbour authorities having been incorporated as State port companies with strict commercial mandates since March 1997.

In his foreword, Mr Ahern says that "notwithstanding the recommendation" by the high level review group that privatisation of port assets was not an immediate option, he was "anxious to explore the possibilities and the level and spread of interest that exists for privatisation".

"Clearly the revenue which could accrue to the State from the sale of port assets could be attractive and, if carefully managed, could result in more competitive port infrastructure and services."

He said any such option would require extensive research and discussion on public interest, social competition and legislative aspects.

On the review's proposed merger of some ports, he said he remained to be convinced of the amalgamation of port companies in all cases, but would be prepared to examine the situation on a port by port basis.

He said that "dormant" ports which were no longer commercial should be allowed to opt out of the function as a trading port. He was interested in examining the potential for public-private partnerships or private development of smaller, non-trading ports where such ventures could "enhance facilities or amenity values, while at the same time safeguarding traditional rights of public access".

Mr Ahern notes that the question of ownership of State foreshore is raised in both reports, and says that he believes that any transfer of same to port companies could "be perceived as permitting ports to engage in untrammelled development without due regard to local communities".

He said any decision to transfer State foreshore to ports would have to be taken on a "case by case" basis.

The reviews are the latest in a series of studies on ports and port transport since the "corporatisation" of the main seaports under the 1996 Harbour Act.

A spokesman for the Minister denied yesterday that the studies had effectively been shelved by the Minister, and said that he was anxious to engage in consultation on the way forward.