asked the Minister for Transport and Power the present position regarding the order for new ships placed with the Upper Clyde Shipyards.
64.
Ceisteanna—Questions. Oral Answers. - UCS Shipping Contract.
63.
Mr. O'Donnell
asked the Minister for Transport and Power the position in regard to the order placed by Irish Shipping Ltd. with Upper Clyde Shipyards; and if arrangements will be made to have this order now placed with Verolme Dockyard, Cork.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 63 and 64 together.
Irish Shipping Ltd. have been in negotiation with the reconstituted management of Upper Clyde Shipbuilders and with the British Government, seeking guarantees in relation to the completion and contract price of the four ships which they have had on order since July, 1970.
I am advised by Irish Shipping Ltd. that assurances and guarantees offered to the company by the British Department of Trade and Industry are considered satisfactory. The necessary legal arrangements are now being made to confirm the order and it is expected that these will be concluded within the next few weeks.
Before the order was originally placed with Upper Clyde Irish Shipping had discussions with Verolme Cork Dockyard Ltd. but the latter were unable, because of other work on hands, to accept an order for these ships. Prior to the liquidation of Upper Clyde, Irish Shipping had paid a total of £1,100,000 in deposits and advances on foot of the contract. Failure to complete the contract would entail loss of most of this sum. Irish Shipping Ltd. are also concerned that the delivery dates for the new ships should be adhered to as closely as possible to ensure availability of new tonnage and to avoid redundancy in the company.
Mr. O'Donnell
I recognise the difficulties that have been encountered here and I hope the outcome will be satisfactory. Would the Minister not agree that it would be desirable in future that the State shipping company should plan in conjunction with the Irish shipyards? In other words, would it not be desirable that all future shipping needs of the Irish shipping company should be supplied by the Irish shipping yards?
So far as Irish Shipping and the B & I are concerned, or any other shipping organisation in which the Government are involved, first priority is given to asking our own shipyards to supply their needs. In this particular case Verolme Dockyard in Cobh, who got first priority, assured us because of their future commitments that they just could not deliver in accordance with the terms.
Then there is no truth in the statement that they were asked to quote for only two of the ships?
No.
Therefore, the price was——
It was not a question of price.
I am glad the Minister has cleared that up.
They were doing so well, they were so booked up at the time the contract was placed that they were unable to meet it.
Did you try Harland and Wolf?