asked the Minister for Industry and Commerce the total State financial assistance to date given to Verolme Cork Dockyard, listing debenture loans held by Taiscí Stáit, shipbuilding subsidies to date, and grants by An Foras Tionscal; the extent to which interest on the debenture loan has been waived to date; the extent to which the State has provided further funds by way of subscriptions for ordinary shares and part payment of loans and grants for the reorganisation of the dockyard; and if he will state, as it seems that under these headings a total of some £5 million State assistance has been allocated to this dockyard, the average State subsidy per ship launched to date.
Ceisteanna—Questions. Oral Answers. - Verolme Cork Dockyard.
79.
The total State financial assistance given to Verolme Cork Dockyard on 31st March, 1969, amounted to £4,049,647 made up of £1,547,214 debenture loans from An Taiscí Stáit, shipbuilding subsidies totalling £1,293,654 and An Foras Tionscal grants amounting to £471,682. The loan interest waived amounted to £637,097 at 31st March, 1969, and the amount subscribed by Taiscí Stáit for ordinary shares at that date was £100,000.
The bulk of the State aid for the company was towards capital expenditure and this is now represented by fixed assets in the yard and is not to be regarded as a shipbuilding subsidy.
As the rate of subsidy has been declining steadily according as efficiency at the yard improved, an average subsidy payment per ship would be misleading. In the case of the first five vessels, where final subsidy payments have been completed, the amounts of subsidy paid were as follows:—
First and second ships—a combined total of £650,000.
Third ship—£116,312.
Fourth ship—£116,263.
Fifth ship—£96,779.
May I inquire briefly from the Minister if he is fully satisfied that the State investment to date in this undertaking is as fully protected as is possible in an industrial venture of this type?
I am so satisfied. The most recent dealings with this company by the State have improved the State's security considerably and they have also led to the development of work other than shipbuilding in the shipyards. The prospects for that kind of general engineering work seem to me to be extremely good both on the home and the export markets. As far as one can see it is a very valuable investment as far as the State is concerned.
Would the Minister agree that there has been some concern in the public mind because of the name association with the firm on the Continent and this shipbuilding yard? Would he make a statement pointing out that the Government here are in full control of this yard and have only a tenuous connection with such shipbuilding yards in other parts of Europe?
I would agree with the Deputy when he says that the connection is tenuous but there is a connection. The yard in Cork is very much more independent of the continental firm than it used to be. Having regard to the report relating to the situation of the continental firm it is true, as the Deputy says, that some concern was expressed. However, I am satisfied from my investigations that there need be no apprehension arising out of the reports in relation to the Cork Dockyard.
I appreciate that.
In view of the Minister's statement that there is a connection could I ask him to clarify the matter further? He could set fears at rest if he would state the precise nature, if possible, of the actual connection between Verolme, Cork and Rotterdam?
I would have to ask the Deputy to put down a separate question in regard to that.