The Minister for the Marine, Mr Fahey, has set up a taskforce to examine the potential for developing land banks at commercial harbours.

The new group, which held its first meeting in Dublin yesterday, will be chaired by the economist, Mr Paul Tansey. Addressing the meeting, the Minister warned that the £46 million (#58 million) investment earmarked for seaports in the National Development Plan (NDP) would not fund all the capital investment needs, and there was a need to encourage private sector investment in ports.

He said there was a need to "change mindsets" and to encourage "new thinking and diversification". Noting that the economic boom had driven up property and land values, he said he had a responsibility as a shareholder in the State's eight port companies to "ensure that State assets are used to their maximum value".

The group will be asked to look at estates and land banks held by eight port companies and 14 harbour authorities. The Minister identified three types:

those which are "dormant" and have no commercial cargo traffic, such as Westport and Ballina in Co Mayo;

commercial ports with no excess land available to develop, such as Dublin;

and those with "spare or redundant capacity" or with obligations to move from town centre locations, such as Waterford, Cork and Dun Laoghaire.

"Some of these service our vibrant economy through facilitating 92 per cent of our imports and exports, while others are in important tourist areas," the Minister said.

"Development of the ports's property base could help to underpin capital investment in core activities," he said, "whilst reclamation or port usage of State-owned foreshore adjacent to ports could allow for asset regeneration and expansion of busier ports."

The Minister said the taskforce would require professional expertise, and a facilitator, Mr Kevin Hannigan of KHSK Economic Consultants, had already been engaged.