Irish Ferries informed me by letter on 20 September that it intended to suspend sailings on its Ireland-France route from 3 November this year, resuming in spring 1997. The Deputy will be aware that a number of meetings occurred subsequent to this announcement by the company, arising from which my Department asked the Labour Relations Commission on 10 October to intervene. The company wrote to me on 18 October and sought an operating subsidy to allow it to continue sailings during the coming winter. This request was carefully considered but I decided that the grant of an operating subsidy would not be an appropriate Government response in the circumstances. I pointed out to the company, however, that I was actively reviewing a number of areas of potential assistance to the shipping sector. In particular, I drew attention to my agreement with the Minister for Finance to review the income tax and PRSI position of seafarers. I appealed to the company and the unions to work together to avoid damaging industrial action and, if at all possible, to maintain sailings during the winter while the issues I have mentioned are pursued.
I note that agreement was reached between the unions and the company last night which will, I hope, avoid disruptive industrial action. I regret it is virtually certain now that the route will close for the coming winter. I note, however, that the terms of last night's settlement will have the effect of maintaining the workforce intact for when the service resumes in March 1997 and provides for the commencement of negotiations early next year, under the auspices of the Labour Relations Commission, on longer term issues. I intend to keep closely in touch with all concerned over the coming months and to pursue in particular the tax and PRSI issue. I assure the Deputy I will do everything in my power to ensure these longer term issues are addressed so that the continental route is maintained as a viable operation over the coming years.