Is ‘mis-management’ and ‘lost opportunity’ rife within Ireland’s Fishery Harbour Centres?
Inshore Ireland sent the following questions to the Department of Agriculture, Food and the Marine on foot of issues arising in a Dáil Submission of January 2012 by John Shine and Sean Doran of ‘Fishing for Jobs:
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Howth Fishery Centre. Photo Gillian Mills
Q: What measures have been taken/are intended to be taken to address the recommendations contained in Section 12 ‘Conclusion’ of the Burke/McIver report?
The Dáil Submission includes three examples of dereliction, management problems and stagnant economic growth at Killybegs and Howth, and offers solutions which it says have been ignored or rejected by DAFM. The group also cites upward-only rent reviews in harbour centres which it says are killing potential job creation and calls for a fair and responsible rent structure to be put in place.
Q: How would DAFM respond to this?
‘Fishing for Jobs’ suggests that the appointment of a top DAFM official to the Task Force for Jobs in Killybegs launched by Minister Coveney last November was a ‘smoke screen’ devised to cover up public pressure generated by their campaign.
Q: How would DAFM respond to this?
Fishing for Jobs’ contends that DAFM is ‘refusing to implement the recommendations’ of the Kerrigan; Bonner and Burke/McIver reports which it says are ‘gathering dust in Clonakilty’. Inshore Ireland is also advised of a marketing plan compiled in 2005 by Helen Kerrigan for developing the fishing industry.
Q:What is the status of this report and can DAFM confirm/correct its cost of €75,000.
DAFM responds:
The Business Plans for the Development of the Fishery Harbour Centres (FHCs) provide a blueprint for the future development of the harbours. The plan was published in 2009 and sets out a five year strategy. The Department is working to implement the recommendations.
For Killybegs FHC, an additional report dealing only with Killybegs, the Killybegs Fishery Harbour Centre Marketing Strategy was published.
This report sets out the findings of key officials including the Department and other State Agencies. This report identifies opportunities that commercial interests can pursue to align with the Department’s strategy and leverage the investment already made in the Killybegs area.
Specific recommendations in relation to Killybegs FHC will continue to be addressed by this Department Actions taken to address the recommendations made in Section 12 of the Business Plans include:
Harbour Users Forum
The Department facilitates a regular Harbour Users Forum for each of the six FHCs. This provides a valuable platform, where the views of stakeholders are heard and discussed. The stakeholders include fishermen, other commercial users, local representatives, Government Agencies and Local Authorities.
Raising the profile of the Fishery Harbour Centres
The Department has worked proactively to raise the profile of the FHCs and attract increased foreign landings. For example, in July 2011, Department officials in conjunction with BIM met with representatives of the French fishing industry and Minister Simon Coveney launched the Strategic Partnerships – Linking Irish and French Seafood Industry.
Significant benefits will accrue to both FHCs and local industries. The benefits of increased foreign landings was evidenced this Spring with large-scale landing into and processing in Killybegs of blue whiting from the Norwegian fleet.
Additional business
The Department is conscious of the need to serve a multi stakeholder and for example facilitates wind turbine and other cargoes in Killybegs. The offshore oil industry is also currently accommodated at this FHC and indeed the Department is conscious to work with other potential customers at other FHCs.
Visiting cruise liners are accommodated and encouraged at the FHCs. These businesses provide a boost to the local economy and also valuable spin-off employment to the hinterland of the FHC. The importance of marine leisure is recognised; for example the Department has just recently completed a small craft facility at Ros a Mhil FHC, which is expected to attract and facilitate considerable additional business to the harbour..
Task Force
Specifically in relation to Killybegs, it should be noted that following the publication of an economic study carried out for the EU Commission which assessed the status, development and potential of Killybegs as a fisheries dependant community, Minister Coveney was approached by a delegation who requested assistance in identifying strategies to convert the potential in Killybegs into employment.
The delegation was led by Sean O’Donoghue, KFO and Seamus Neely, the Donegal County Manager. Minister Coveney established a high level group comprising Sean O’Donoghue (Chair) KFO; Jason Whooley, BIM; Seamus Neely, Donegal County Manager, Paul Hannigan, President of LYIT; Conor Fahy, Enterprise Ireland; Niall O’Gorman representing the Donegal Fish Merchants Association; Jim Parkinson representing the offshore energy and ancillary industries and Cecil Beamish DAFM.
The group was requested to report back within a short timeframe and to identify opportunities for creating 250 new jobs in the area on a cost neutral basis for the State. That Group has worked hard and made a significant effort to identify a range of strategies that could lead to the creation of 250 jobs by 2014.
The group was essentially a group of local people working proactively, assisted by the relevant Government bodies, to tap into the local potential and apply whatever catalyst is necessary to unlock this potential and create much needed employment.
Property management
The Department has proactively worked on the implementation of the recommendations of the ‘Business Plans for the Development of the Fishery Harbour Centres in relation to property management.
Chapter 11 Paragraph 4 sets out the actions that should be taken regarding the Department’s property portfolio.
The Department can confirm it has:
- worked to ensure a commercial focus on its property portfolio
- put commercial arrangements in place for the various State bodies using Department owned property
- conducted all necessary valuations
- brought the rent review process up to date
- worked to ensure timely payment of all lease payments
Rent review process
Regarding the matter of upward only rent reviews the following is the current position. There are only five rent reviews currently in dispute, two of which have been referred to an independent expert for valuation and the remainder are under review by the Department.
In effect, less than 6% of the Department’s tenants are in dispute in relation to the terms of their lease and one third of those are proceeding with independent expert valuation as provided for in the Department’s dispute resolution mechanisms. For properties it may be helpful to outline the Department’s policy regarding the rent review process at the FHCs.
- All leased properties at the six FHCs are subject to rent reviews in accordance with the rent review terms and conditions of each individual lease. The Department notifies the tenant of the rent review and the open market value of the premises is decided, by a qualified valuer. The Department bears the cost of the initial rent review
- All leases issued in the six FHCs, prior to the application of Section 132 of the Land and Conveyancing Law Reform Act, 2009, have what are referred to as ‘upward only rent reviews
- In the event that a tenant is not in agreement with a revised valuation as assessed at the time of a rent review, the leases include a mechanism for the resolution of the disagreement. This involves seeking agreement of both parties to nominate a chartered surveyor to determine the rent. All fees and expenses of the chartered surveyor are borne jointly by the Department and the tenant
- To further assist in the process, a tenant is provided with the names of three chartered surveyors to whom the Department is agreeable and is asked to agree to nominate one of these as an expert to determine the rent. In the event that a tenant is not happy to choose one of the three it is then open to the tenant to suggest an alternative chartered surveyor for consideration. If the parties cannot agree on a nomination it is open to either party to approach the Chairman of the Society of Chartered Surveyors to make a nomination.
The mechanism has worked well and it is worthy to note that in no case was the independently assessed rent found to be less than the rent in place prior to review. As an exceptional measure and in recognition of the current economic situation and the difficulties being experienced by some business the Department has decided to offer a nil increase for all FHC tenants with rent reviews falling due in the years 2008-2012.
Capital investment
The Department has continued to oversee and progress capital investment in the FHCs. In 2011, €10,177m was allocated to the Fishery Harbours and Coastal Infrastructure Capital Development Programme.
This year despite the current economic conditions, €6m has been allocated to this programme to facilitate ongoing investment and maintenance at the FHCs and Local Authority owned piers, slipways and landing places.
Rates & Charges Order
A review of the Fishery Harbour Centres (Rates & Charges) Order 2003 (S.I. 439 of 2003) which is the basis for charges at Fishery Harbour Centres has been conducted. The introduction of new charges will follow a public consultation as part of the process of revising the Order.
Stakeholder views and the recommendation of the Killybegs Task Force in relation to syncrolift charges have been taken into account. A public consultation document is currently available and the Department and is receiving submissions in relation to it.
Training
Induction training has been put in place for all new harbour management. In addition the Department’s Training & Development Unit actively pursues the identification and delivery of necessary and appropriate training for harbour staff. Regular meetings are held with Harbour Masters and their staff in order to facilitate and ensure best business practices.
