Minister for Transport, Tourism and Sport, Paschal Donohoe TD, has today (Tuesday) secured Government approval for the Harbours Bill 2015. The purpose of the Bill is to provide the necessary legal basis to allow for the later transfer by Ministerial Order of the control of the five Ports of Regional Significance – Drogheda, Dún Laoghaire, Galway, New Ross and Wicklow – to local authority led governance structures. In addition, the Bill will further enhance the corporate governance structures of all port companies including the five proposed transferee ports and those relevant Ports of National Significance – Cork, Dublin, Shannon Foynes and Waterford (see Notes for Editors).
Minister Donohoe said: ‘This Bill is another important step in the development of our commercial ports sector. The Bill provides the legal basis to one of the key recommendations of National Ports Policy, published in 2013, namely that control of those designated Ports of Regional Significance should transfer to more appropriate local authority led governance structures. The transfers also support Government’s reforms in the area of local government generally through enhancing the role of the local authority in regional economic development’.
The Bill will provide for the later transfer of Drogheda, Dún Laoghaire, Galway, New Ross and Wicklow to local authority led governance structures. The Bill allows for two different transfer methods –
1) A transfer of shareholding in the existing company structure and retention of the existing company [Part 2 of the Bill], or
2) A dissolution of the existing company structure and complete integration within local authority structures [Part 3 of the Bill].
These transfers will take place on foot of a later Ministerial Order and the model of transfer chosen will be informed by local authority led due diligence processes currently underway in respect of each company and which has been funded by the Department.
Minister Donohoe said: ‘Another important element to the Bill is the reforms introduced to corporate governance generally within all the port companies, irrespective of whether their shareholder is the Minister or the local authority . The Bill introduces new statutory skillsets for directors, requires any prospective chairperson to appear before elected representatives to discuss their appointment, introduces a statutory requirement in relation to accountability generally of chairpersons and CEOs to elected representatives and states that no director can serve beyond 10 years in total’.
Note for Editors
There are nine commercial port companies established and operating under the Harbours Act 1996 – Cork, Drogheda, Dublin, Dún Laoghaire, Galway, New Ross, Shannon Foynes, Waterford and Wicklow.
National Ports Policy was published in March 2013 (available on this link). A key reform introduced by
National Ports Policy was the tiered categorisation of the sector into –
- Ports of National Significance (Tier 1): Cork, Dublin and Shannon Foynes
- Ports of National Significance (Tier 2): Waterford and Rosslare Europort[1]
- Ports of Regional Significance: Drogheda, Dún Laoghaire, Galway, New Ross and Wicklow
The Ports of National Significance (Tiers 1 and 2) are our key international maritime gateways and collectively handle approximately 90% of all tonnage handled at Irish ports in any given year.
The five Ports of Regional Significance collectively handle approximately 4% of total tonnage at Irish ports. The five ports are each important to their regional economy as facilitators of regional trade and also as centres of maritime related tourism and leisure activities.
Each of these five companies will transfer to local authority led governance structures under one of the two possible methods introduced by the new Bill –
1) A transfer of shareholding in the existing company structure and retention of the existing company [Part 2 of the Bill], or
2) A dissolution of the existing company structure and complete integration within local authority structures [Part 3 of the Bill].
The transfer to new governance arrangements will take place through a Ministerial Order made under the new Harbours Bill. The Department of Transport, Tourism and Sport is currently funding the relevant local authorities to assist them in conducting a due diligence process ahead of the later transfers.
Additionally the Bill also improves the corporate governance structures of all port companies irrespective of their policy categorisation through –
- Mandatory skillsets: each board must have directors with experience and competence in maritime transport, financial, legal and trade & commerce matters.
- Indicative other desirable skills: infrastructure planning/development, environmental management/sustainability, project finance, commercial property management, public administration (also local government, in the case of a transferred company).
- Gender balance: statutory requirement that boards comprise an equitable gender balance.
- Term limits: all directors can only serve a maximum of 10 years.
- Democratic accountability:
(a) statutory requirement that a proposed Chair will appear before the Joint Oireachtas Committee on Transport (or the relevant elected council in the case of a transferred company) prior to formal appointment.
(b) Statutory requirement that a Chair and CEO must, if invited, appear before the Joint Oireachtas Committee on Transport (and the relevant elected council in the case of a transferred company) to give account for the administration of the company.
The Bill also provides for a number of largely technical amendments to the existing Harbours Acts which have been identified during consultation periods. Further detail about the development of the legislation is available on the Department’s website through this link.
[1] Rosslare Europort is a designated Port of National Significance (Tier 2) within National Ports Policy; however, it does not operate under the Harbours Acts framework and is not therefore impacted by this Bill.
Ends