merrion street

Minister for Transport, Tourism and Sport Leo Varadkar has today welcomed the decision of the Port of Cork to pay the state a dividend of €634,315 in respect of 2010. This represents 30% of the Port’s after tax profits and is the first time that the Port Company has paid a dividend to the state.

Speaking on the matter, Minister Varadkar said “I warmly welcome this contribution by the Port of Cork. I recently wrote to the commercial agencies under my Department’s remit advising them that, unless there is a compelling reason otherwise, they should be making a return to the Exchequer. In line with the McCarthy Report, this return should be 30% of after-tax profits. Therefore, I am very pleased that the Port of Cork has responded so positively, so quickly.”

Minister Varadkar continued “The Port of Cork becomes only the second of the nine Ports under my Department’s remit to pay a dividend.  I will be expecting all profitable semi-states to pay a dividend for their activities in 2011. The only exceptions should be those companies dealing with massive debts or other liabilities.”

Mr. Dermot O’Mahoney, Chairperson of the Port of Cork said “The Board of Directors of the Port of Cork Company have made a dividend payment to the Exchequer of €634,315, 30% of the company’s 2010 Profit after taxation. The Board recommended this dividend in support of the Minister for Transport, Tourism and Sport’s view that “the regular payment of a reasonable dividend to the shareholder is good practice and a performance regulator” for State assets particularly given the current financial position the State finds itself. The Port of Cork Company will endeavour to continue to make a profit after tax and continue to pay a dividend in the amount of 30% of profits available for distribution. The Company will also continue to pursue its capital strategic development plan and reduction in its pension fund deficit.”