asked the Minister for Transport and Power whether he can now state what depreciation is appropriate for the year 1959-60 in respect of the fleet of Irish Shipping, Ltd., during which the Company expect to make a trading profit of £216,000 before providing for depreciation.
Ceisteanna—Questions. Oral Answers. - Irish Shipping, Limited.
24.
The accounts of Irish Shipping Ltd. for the year ended 30th April, 1960, which have been presented to both Houses of the Oireachtas today, contain the information sought by the Deputy.
In view of the fact that it has not yet been presented to Dáil Éireann could I prevail on the Minister to extract the figure from the report, which apparently he has in his hand and communicate it to me now?
The document should have been presented. I am sure it will be available very shortly. The depreciation on vessels in the accounts of Irish Shipping Limited for the year ended 30th April, 1960, is £695,547, which represents a full year's depreciation at full normal rates.
Does the Minister think it a desirable practice to publish a preliminary statement for the information of the public that Irish Shipping has, in a given year, made a trading profit of £216,000 without reference to the fact that the figure has been arrived at before making allowance for £690,000 worth of depreciation which the auditor of the company considers to be a necessary and proper provision and which converts what the public were led to believe was a trading profit of £216,000 into a loss of £400,000?
I think the Deputy is being slightly unfair because in the course of my speech on the Estimate I made it clear that all the shipping companies doing tramp shipping business are going through a difficult period and I pointed out that I have confidence in the future of Irish Shipping Limited. I did mention, as the Deputy will find—I have not the text by me—if he reads the whole of what I said on the operations of Irish Shipping Limited, that they were in a difficult position because of the reduction in freight rates consequent on an excess of shipping. If the Deputy reads the whole of my Estimate speech he will not believe that I was deceiving the public in any sense. It is a matter of opinion of course, but, in my opinion, I did not deceive the House or the public in what I said.
I am not primarily concerned to comment on the state of Irish Shipping's balance sheet as of today. The only question arising is that I read in the newspaper a preliminary statement sponsored by the Minister long before he made his Estimate speech in which he recorded that Irish Shipping had made a trading profit of £216,000. Subsequently I put down a question in terms similar to this question today and the Minister said he would prefer that I should wait for the publication of the report. I have now repeated the question and there emerges the fact that what people have been told is a trading profit of £216,000 is, in fact, a loss of over £400,000. My sole concern is that inaccurate preliminary information of that kind does more harm than good.
The Deputy must appreciate the fact that the Irish Shipping Company as a company, from the point of view of its company finance, is a very solvent company.
That has nothing to do with the matter.
Its assets in the form of ships are very significant and important, and one simply has to accept the downturn or upturn in freight rates over a long period of years. Sometimes units of 20 years are taken for the purpose of estimating the prosperity of shipping companies. The Deputy can examine the history of British tramp shipping companies and other companies who operate on the same lines and he will find a similar story of alternate downturns and upturns. Speaking of the general picture I have confidence in the future of Irish Shipping assuming that the world remains sane and assuming that general world prosperity and trade continue to grow as they are growing.
That is all I intended to convey to the House and the Deputy need not accuse me of trying to conceal something from the public.
We may all have confidence in the future of Irish Shipping but I am afraid the Minister has gravely shaken our confidence in his accuracy.
He did it for a headline.