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Dáil Éireann debate -
Tuesday, 22 Feb 1983

Vol. 340 No. 4

Private Members' Business. - B & I Cork-South Wales Service.

I move:

That Dáil Éireann calls on the Government, in view, of the B & I Company's announced decision to abandon the Cork-Pembroke Service, to ensure that a full, regular and round the year service be provided as soon as possible between Cork and South Wales, such as operated satisfactorily for more than ten years between Cork and Swansea, and pending this outcome to ensure that a service be provided immediately by the B & I Company for the remainder of 1983 in accordance with their contractual obligations.

An amendment has been tabled to this motion which I reject as being inadequate. I call on the Minister to honour, as a matter of extreme urgency, the motion as I and my colleagues have presented it. I do so because the amendment certainly does not take account of the problem which exists in Cork. There has been a traditional link with the Welsh coast for 150 years or more, and once a service like that ends the danger is that people will forget it ever existed and it will become very difficult to start it again.

The wording of the amendment is amazing. It proposes to delete all words after "Dáil Éireann" and substitute the following:

notes the decision of the B & I company to close the Cork-Pembroke Ferry Service as part of its plan to reverse its serious loss-making situation; notes also that since the decision was conveyed to the Government in October, 1982, it was not found possible by successive Governments to recommend a reversal of this decision....

That is laughable. My colleague will be able to explain later in the debate the role of the Minister in this and the fact that the Minister's approval was needed before the service could be discontinued. Deputy Jim Mitchell, Minister for Transport, is the man responsible. I am asking that the service should be continued in 1983 to meet the contractual commitments of the company and after that I am advocating the establishment of a permanent link. I have some suggestions as to how that link could be established. We realise the continuing need for this ferry in the interests of Cork, Kerry and the entire region.

I now refer to the employment situation. The total shore employment was 65 and 45 of those have been notified of redundancy, at a time when Cork can ill-afford any further unemployment. I understand that 56 people employed on ship will become redundant and we are probably talking about a total of 120 people. That is only the beginning. Many people are employed in related jobs throughout the region. The Government have an investment of about £30 million in B & I. The most suitable and successful service operated between Cork and South Wales was the Cork-Swansea link which operated for about ten years to 1978 or 1979. The tourist industry, which is so dependent on this service, is probably at its lowest ebb. Recent budget increases, particularly in VAT, will hit that industry very hard. We know that the Hotels Federation had been lobbying for a reduction in the 18 per cent rate of VAT but instead it has been increased to 23 per cent. This may well be a body blow to the tourist industry in the Cork-Kerry region, which is worth £117 million. There are some areas within the region which are almost entirely dependent on tourism, particularly the peninsulas of Cork and Kerry where there is little other income to be derived.

The traditional link between Cork and South Wales is remembered with sadness by many families whose relatives had to emigrate. Then there were the years when emigration turned to immigration and people began to come home, many on the Innisfallen. All the decisions taken by the company since the ending of the Cork-Swansea link have amounted to a run-down of the service.

The tourist industry in the region employs 18,000 people directly, but that is only part of the story because many other people are dependent on it. The region accounts for a very substantial part of our entire tourist industry and provides 27 per cent of our tourist accommodation. Of our hotels, 23.6 per cent are in the Cork-Kerry region, as well as 32 per cent of guesthouses, 20 per cent of town houses, 30 per cent of country homes and 31.3 per cent of farm guesthouses. Is it to be imagined that the occupancy rate of that accommodation will not suffer? Of course, it will. I do not want to be divisive as between Cork and Rosslare but I reject that argument that people will still come to Cork and Kerry in the same numbers through Rosslare. That is not feasible and that is why there is an obligation on B & I to re-establish immediately a service to complete the 1983 contractual commitments to be followed by a permanent link with the Welsh coast.

This is the largest tourist region in Ireland and it depends to a great extent on income from tourists. I accept that the company introduced a five-year plan in 1977 and at that time it was announced that the intention was to introduce a continental service from 1980. That scheme was opposed by Irish Shipping Limited and the Fianna Fáil Government of the day did not see fit to give permission to B & I for it. A very fine ship built in Verolme Dockyard, the Connacht, was put on the Cork-Swansea route with great expectations. I am not sure if the management of B & I took a positive decision then regarding Cork but certainly everything that happened after that seemed to be aimed at running down the service from that harbour. I should like to add that the Joint Committee on State-Sponsored Bodies who examined the position recommended that there should be consultation and co-ordination between B & I and Irish Shipping Limited with a view to getting the maximum benefit from both companies in the national interest. At first sight such a suggestion would appear to mean many advantages. The Government have a responsibility to ensure that all schemes are explored to the maximum with a view to restoring the service, perhaps by the companies joining forces, to the successful one it was on the Cork-Swansea route.

The Fianna Fáil Government did not allow B & I to embark on a continental service and it appears that following that a decision was made to withdraw from Cork. I do not wish to deal at length with the decision to purchase the jetfoil but suffice to say that it has been described since as a major mistake. Obviously the jetfoil if it was not a success on the English Channel route would not be successful on the Irish Sea which is a lot rougher. I understand that the cost of having that craft in dry dock is in the region of £900,000 per annum. What an awful mistake to have made and I have no doubt that the failure of that scheme was a contributory factor in the decision to discontinue the B & I service out of Cork.

The successful years for the B & I came to an end in 1979 when the company decided to change its base on the Welsh coast from Swansea to Pembroke. Those who availed of the route to Swansea are aware of the good facilities on the Welsh side, the M4 to London, the motorway through Birmingham to the midlands and the hourly train service to London. Swansea was also a very attractive town for shopping and for that reason the service was availed of by many organisations who brought their members on shopping expeditions. I am not suggesting that we should encourage shopping trips abroad but if such trips help to maintain jobs at home we must look at them in a different light. Pembroke never proved to be an attractive shopping centre. We were told that in changing the destination from Swansea to Pembroke the B & I management took into consideration the tidal problem at Swansea and the advantage of a shorter sea crossing. Whatever about those factors management's decision spelt the death knell of the service from Cork to the Welsh coast. The Pembroke service was less attractive and the advantage of the shorter crossing time was more than negatived by the road conditions on the other side and the lack of adequate facilities. I suspect that there was a little bit of thickness involved on both sides and with a little common sense and foresight the tidal problem could have been overcome and the move from Swansea to Pembroke need never have taken place. My view is that the only reason for the change was to facilitate the service from Rosslare to the Welsh coast which was due to commence in 1980. I am not trying to be divisive as between Cork and Rosslare and I have no objection to any further developments at Rosslare but I object to discrimination in favour of a Rosslare crossing as against a crossing from Cork.

I am sure the business people of Swansea would welcome a return of the ferry service which I hope B & I and Irish Shipping Limited will organise. Since 1979 B & I have been pretending to give a service but have been providing one that was not accommodating and unsuitable from the point of view of those using it. Twelve months ago I attended a protest meeting and I heard a man who had used the service for many years saying that he would use air travel in future because of the decision to move from Swansea to Pembroke.

B & I had ten very successful years. They carried about a million people and 200,000 cars in that period. All the people concerned in B & I should note that and, if mistakes have been made, to reverse the decision which has been so damaging. I can give last year's figures for the Cork-Swansea service: 51,000 cars and 219,000 passengers.

It is true to say that management consulted the works committee representing all the works' interests in Cork. They told them they were linking Rosslare with the Welsh coast, with the advantages of its being a shorter sea route and that they could compete with British Rail on equal terms, and that the costs at Pembroke could be shared by the two services. Whatever advantages those may have been, the travelling public were being more and more inconvenienced. The company claimed that Rosslare would be profitable and would not interfere with them. The workers were assured that this would be a move in their interests rather than being, as it now transpires, effectively the end of their employment with that company. The work force saw Rosslare as a help. They were given these commitments by the company. I am sorry to say those commitments did not materialise and, instead of being a profitable organisation, Rosslare lost £1 million in 1981 while the Cork losses were £1.1 million.

The cut backs then began to take place. In 1979 there were 265 round trips from Cork. In 1980 there were 258. In 1981 there were 187. In 1982 there were 156. In 1982 there was one ship on the Cork-Rosslare-Pembroke sea routes. I think the term they used was forked sailings. A serious deficiency in the Cork situation was that there were no night and weekend sailings. They are the most profitable and they are also the most attractive. They are the most likely to be used.

We are talking about something which is almost as traditional in Cork as Shandon Bells. I do not think Deputies on the other side of the House will disagree with me when I say that. The sailing of the Innishfallen was almost traditional. Modernisation was needed. I suggest that the Cork-Swansea sailings in that ten year period were extremely successful and showed a profit. They must have been of major benefit to tourism in the whole region during that period. No night and no weekend sailings were allowed to the Cork people. They did not get that facility. Obviously that meant they used other sailings if they were going for a weekend. It appeared to be another effort to run down Cork.

We talk about our road conditions, the cost of maintaining and improving our roads, and the high incidence of death on the roads. The extra volume of heavy traffic generated from whatever seaport to Cork since the running down of this ferry connection began is amazing. In a radio interview recently I said that one morning at about 7 a.m. or 7.30 a.m. between Mitchelstown and Kilbeheny, a very short distance indeed, I met five or six loaded B & I containers on their way from Dublin to Cork. This was business which could have been handled successfully by the company in Cork.

Some people suggest that attractions were offered to people who were prepared to use Larne-Stranraer. No effort was made to sell or promote the Cork ferry. In this forked service the ship usage was 30 per cent Cork and 70 per cent Rosslare. Yet Cork accounted for 48 per cent of the cars and 61 per cent of the passengers carried. I do not begrudge Rosslare the service, but there are a number of ferry services on the east coast and there is none now on the south coast.

I hope the Minister will agree with this motion, not the amendment. The amendment is not acceptable. It cannot be tolerated or accepted. The motion is very clear and reasonable. It does not ask for the indefinite continuance of a service which may not be profit-making. It asks for the continuance of a temporary service to accommodate the 1983 situation and, while that is being done, to promote and provide for a properlink on a permanent basis with South Wales and embracing some of the improvements or some of the restorations.

If people have to admit they were wrong in their decisions why not do so; if that is in the interest of employment and the entire Cork region? This was the only ferry catering for the south coast. I hope Irish Shipping, or a combination, or whatever, will operate it as a permanent link, subject to the immediate need in 1983. The two companies could be amalgamated. People may talk about recessions, but they do not last forever. It is incredible to think that a vital link with the tourist region of Cork-Kerry, our biggest tourist region, should be lost. This industry was worth £117 million last year. It employed 18,000 people. It was of huge benefit to the region. It is being dealt a body blow. Once a service is ended, the travel agents and the promoters are inclined to forget about it and not restore it to their literature or to their thoughts when promoting tourism. When it dies, it is very difficult to restore. The advantages in amalgamation are many. The workforce of the B & I in Cork are very loyal and have been concerned about this matter long before today. This is very much a Cork-Kerry regional problem and is a body blow to that area. The sharing of ships, termini, personnel, shore facilities and jobs could have many advantages if they were amalgamated.

In a public advertisement in the press in June 1981 Fine Gael guaranteed the future of the B & I terminal. In November 1982 a meeting was held with all political parties and a spokesman for Fine Gael said that in Government his party would ensure the continuance of a car ferry service run by a semi-State body, which was a very significant statement. The basis of our motion is to provide a car ferry service run by a semi-State body. We are not saying it should be carried on indefinitely but at least for 1983. It is scandalous that the Government should have permitted B & I to award a major service contract, worth about £650,000, to a British dockyard in preference to their own, as we know that there will be redundancies in Verolme dockyard. I hope also that the Russian contracts which are promised will materialise.

I referred to the fact that there is a £30 million Government investment in B & I, the link between Cork and the Welsh coast. It is absurd that the Government should have allowed that contract to be placed elsewhere than Verolme. Surely both companies, being in receipt of substantial State aid, should have been able to come to some understanding, or were there other, hidden reasons connected with the motion before us? In the present state of the economy and the high rate of unemployment, we cannot afford the luxury of contracts being placed outside the State.

I think I have made a reasonable case as to why the motion before us should be adhered to. The motion is not asking for the impossible, nor for the indefinite continuation of something that is not profitable. I understand that ships are available which could be used for 1983 mainly in the interests of tourism in the region. We are aware that the Blarney Hotel has recently had cancellations because of difficulties with the ferry service, I presume in relation to the discontinuance of this link. This link has lasted for more than 150 years and should be preserved. It means so much in direct employment to the region and its loss is a body blow to the tourist industry, parts of which are utterly dependent on tourism to carry them through the winter months.

We know ICL are commencing sailings to the Continent from the Cork port. I have not gone into harbour development, the investment in Cork harbour and the pressure B & I exercised on the harbour board to shorten the sailing distance. Now they will say they meant Cobh, not Ringaskiddy. From the point of view of B & I, I cannot understand what difference the two places made to them. Admittedly, there are other problems. Money has been invested in roads but much more needs to be done. They have now discontinued service and it was this Minister that allowed it to happen. My colleague in the House will be able to state categorically what was before them but the decision not to continue the service was taken by the present Minister. He said he spends holidays in Cork. We will welcome him every time he comes but we will give him an extra welcome if he accedes to my request to continue the B & I service for 1983 and, while that is going on, to prepare a proper link by the amalgamation of the companies.

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute:—

notes the decision of the B & I company to close the Cork-Pembroke Ferry Service as part of its plan to reverse its serious loss-making situation; notes also that since the decision was conveyed to the Government in October 1982, it was not found possible by successive Governments to recommend a reversal of this decision; and welcomes the initiative of the Minister for Transport, and his continuing efforts, to provide a Summer ferry service in 1983.

I will certainly take up the Deputy's invitation to go to Cork for holidays. I have been there in the past and I thoroughly enjoyed myself. I am sure if I go there again I will enjoy it just as much.

The Minister has asked me to apologise because he is unable to be present here this evening. He was, in fact, due to attend a meeting of the Council of Ministers in Brussels today but has been unable to travel due to illness. He has conveyed his apologies for his absence to the Chief Whip of the Opposition.

First, I think it is important to be clear on the mandate given to the B & I and the conditions under which the company are expected to operate their transport services. The company was acquired by the State in 1965 to secure a greater measure of Irish participation in the cross-Channel trade. It was clear from the time the company came into State ownership that it was to be operated on a commercial basis and the board of the B & I have accepted that they had been given a mandate to operate a commercial enterprise. The company had losses in their early years of operation due to the effects of a heavy investment programme undertaken to replace old ships and equipment. A profit was made between 1969 and 1978 with the exceptions of 1972 and 1973. Since 1979, however, the company have been experiencing financial difficulties and losses have been increasing each year. A loss of £1.1 million was returned in 1979, £2.2 million in 1980, £7.54 million in 1981 and an estimated loss of £9 million in 1982.

The serious deterioration in the company's financial position over the last few years has been due to a number of factors. The general economic recession in this country and in B & I's principal market — Britain — and continuing unrest in Northern Ireland, have created difficulties for the company. Escalating fuel prices and increases in other costs, coupled with intense price competition on the Irish Sea, have been contributory factors. The company are also carrying a high level of borrowing and lease obligations resulting from investment in larger car ferries and other equipment in recent years. The burden of servicing these debts has created difficulties at a time when the company have had to contend with the twin problems of a downturn in tourism activity and the effects of the economic recession.

Apart from an injection of £20 million State equity from the Exchequer towards the construction of two car ferries in recent years, the company have also received further State equity of £12.4 million in 1981 and 1982 which has been used as working capital. The projections for 1983 are also for a substantial loss and the company have requested further State investment.

I have outlined the serious problems facing the B & I Company so that the decision of the B & I board to close the Cork-Pembroke service may be looked at in the context of the serious situation in which the company find themselves. The board of the B & I in 1982 introduced various economies designed to reduce the company's cost structures, maximise the use of operating assets and realise cash on the sale of surplus assets.

As Deputies are probably aware, a review of all the company's services is being carried out under the aegis of my Department since late 1981. The company's activities are being examined with a view to identifying loss-making areas and improvements necessary to return the company to profitability.

As I have already said, the B & I Company are expected to operate commercially and their losses must be reduced and finally eliminated.

In examining the company's operations on the "Southern Corridor" as it is known, meaning the totality of routes between Cork-Rosslare and Fishguard-Pembroke, the performance of both the Cork-Pembroke and Rosslare-Pembroke services of the B & I have been examined. In 1980 and 1981, when one ship was operated on each route, the Cork route showed a substantial decline under each of the separate traffics — cars, foot passengers and commercial vehicles while corresponding traffic through Rosslare showed a substantial rise. Total carryings on the two routes combined increased in 1980 and again in 1981. Car parties via Cork declined from 48,000 in 1979 to 32,000 in 1981. Foot passengers declined from 97,000 in 1979 to 64,000 in 1981 and commercial vehicles from 4,000 to 1,500 over the same period.

In 1982, B & I endeavoured to improve the trading situation on the Southern Corridor by operating the Cork-Pembroke and Rosslare-Pembroke routes with one ship instead of two ships as herefore. This strategy did not, however, improve performance. Both routes suffered because the unattractive sailing times and disruption of timetables whenever delays were occasioned by bad weather or breakdowns created problems. The estimated carryings on the Cork route for 1982 were 21,000 car parties, 57,000 foot passengers and 1,000 commercial vehicles.

The Rosslare route suffered more than the Cork route because of the operation of a forked service in 1982. Whereas the Cork schedule operated at the same times throughout the week with departures from Cork at 9.30 a.m. and from Pembroke at 10.45 p.m., the Rosslare schedule, using the same ship, had to fit in with the Cork sailings. This resulted in sailing times to and from Rosslare at different times or different days of the week, some of themat very unattractive hours. Three sailings left Rosslare at 2 a.m., three arrivals were after midnight and one at 3 a.m. An improvement could only be achieved on the Cork route by a combination of increased carryings and realisations and reduced costs. Substantial real increases in realisations would be difficult to achieve if fares are to be maintained at a level which can compete with the short sea routes. Charges on the Cork-Pembroke route are only about 20 per cent above the Rosslare-Pembroke route although the journey is twice as long, and a reduction in costs is more difficult to achieve given the higher costs of operating the longer route.

The argument has been made that the change of the B & I terminal in 1979 from Swansea to Pembroke was the reason for the decline in support for the Cork service and that the move was primarily to facilitate the new service from Rosslare which was inaugurated in 1980. B & I had a two-fold reason for deciding on the change. Alleviation of the silting problems caused by tidal conditions at Swansea would have involved the company in underwriting substantial expenditure by the harbour authority. The change also enabled the company to shorten the sailing times on the Cork-South Wales service.

Swansea was said to have many advantages over Pembroke because it was a city and had better communications. I would question whether these arguments are sustainable. There are many ports, for instance, Holyhead and Fishguard, which are not cities but they are nevertheless used intensively. It could also be stated that the road networks to and from Fishguard and Holyhead are not significantly different from those serving Pembroke, and indeed in some respects are more difficult. The year 1978 has been taken as an example of very good carryings on the Cork-Swansea route. It has to be remembered, however, that 1978 was a peak year in Irish tourism.

The fact that the B & I were informed by the Minister for Transport in 1979 that the company should not operate a service to the Continent has been advanced as a reason for B & I's situation in Cork at the moment. It has been stated that the service would have been profitable and that the profits could have been used to sustain a service to Britain. It could be said that B & I had been given an opportunity to become involved in the operation of a service to the Continent in the early seventies when both B & I and Irish Shipping were asked to inaugurate a service following the withdrawal of Normandy Ferries. Irish Continental Line was then set up for this purpose and it would have been unrealistic to have two State shipping companies operating competing services to the Continent.

The argument that denial to B & I of a passenger service from Cork to France lies at the root of the difficulties of the company's Cork-Wales service is often put forward by people who, in the next breath, will claim that B & I and Irish Continental Line should be amalgamated. If B & I could have improved their position by operating a continental service — and this is an unproved assumption — but at the cost of worsening ICL's position, I do not see that from the overall national viewpoint anything would have been gained. I think that the decision that B & I should not enter into direct competition with ICL was justifiable. This is not to say, of course, that the present position in relation to the two companies is ideal. Many interests have followed the lead of the Joint Committee on State-Sponsored Bodies in suggesting some form of merger or other close association. It is not beyond the bounds of possibility that such a development, if it were to materialise, could ultimately be to the benefit of Cork and of the region it serves.

It has also been stated that there has been a lack of commitment by the B & I company to Cork. It is difficult to see how this allegation can be sustained when it is considered that B & I had a work force of over 90 people on shore up to early 1982 which included passenger and freight sales personnel. Since the position of the Cork service made the headlines more than a year ago, public representatives, local business people, tourism interests and all public bodies in the Cork region have unanimously decided that the service is vital to the commercial life of the region. It is conceivable that the service would not now be in its present position if the service had been supported with the same enthusiasm as closure has been resisted. There is an obvious parallel with railway lines where closure commonly elicits joint action from groups and interests whose practical support, if forthcoming, might have made the line economically viable.

Whatever the position has been as regards support by exporters and travellers from the region for the Cork service, the reality is that there seems to be a customer preference for the short sea crossing. This has been amply demonstrated both here, on the English Channel and on the North Sea. From the shipping operator's point of view the advantage is obvious. There is better utilisation of ships. The high fixed charges associated with shipping can be allocated over a greater number of trips for a short route operation. Greater flexibility is possible with off-peak operation. Lower unit costs can be reflected in lower rates and fares.

The future of the Cork-Pembroke service has been the subject of public debate for quite some time. As Deputies are aware, there have been numerous meetings with public representatives and Cork interests regarding the question of termination of the Cork-Pembroke service.

On 19 October 1982 the then Minister of Transport met the Lord Mayor of Cork, Alderman Hugh Coveney, TD, and a deputation representing local and harbour authorities, tourism organisations, exporters, chambers of commerce and others, as well as public representatives in the area. At that stage it became public knowledge that the B & I management would be recommending to their board that the Cork-Pembroke service be closed on 31 October 1982. The then Government had decided in May 1982 that the Cork service should be reviewed on the basis of monthly reports supplied by the company. The B & I board decided to postpone their decision of 27 October 1982 that the Cork service be closed on 31 October 1982 to 7 January 1983.

The present Minister for Transport met a deputation representing Cork interests led by Alderman Hugh Coveney, TD, Lord Mayor of Cork, on 30 December 1982. Having heard the views of the deputation the Minister decided to ask B & I to continue the Cork-Pembroke service in operation after 7 January 1983 until the Government had had an opportunity to consider the whole question.

The Government had before them a comprehensive memorandum setting out all the issues. The Government had also taken into account the views expressed by all interested parties and examined all the options available to them. Because of the substantial losses being incurred by B & I and the very difficult financial position of the Exchequer the Government had reluctantly decided that it had no alternative but to allow the B & I board to terminate the service from the earliest practical date.

The Government are anxious, however, that the possibility of a summer service from Cork in 1983 should be investigated. The Minister for Transport has asked the board of B & I to examine the feasibility of providing such a service and to report back at the earliest possible date.

The B&I, in their examination, will be consulting the various interested parties in the Cork region. The Minister for Transport feels that this will give such interests an opportunity of demonstrating the extent of their commitment to such a service and to produce realistic and sustainable measures of support.

The Opposition motion calls on the Government to ensure that a service is provided immediately by the B&I Company for the remainder of 1983 in accordance with their contractual obligations. It does not seem to me that the company are obliged under their present commercial mandate to provide such a service. I must day I am surprised that Deputies opposite are now asking the Government to continue this service in view of the policy laid down by the previous Government in their national economic plan 1983-1987 —The Way Forward— and I quote.

As regards the capital expenditure of commercial semi-State bodies all significant investment proposals will be submitted to the most rigorous and, where necessary, independent financial and commercial assessment before they are allowed to proceed. Unless the proposed investments are judged capable of achieving an adequate rate of return on capital employed they will be turned down. A similar approach will be taken in regard to proposals for the financial restructuring of semi-State bodies. The ultimate aim of each commercial semi-State body should be to give a rate of return at least equal to the cost to it or to the Exchequer of borrowing funds as far as its commercial activities are concerned."

Further on in the document it is stated that the Government:

intend to ensure that in future the principle of commercial viability is effectively adopted by all commercial State transport companies as their basic operating criterion.

Specifically in relation to the B & I Company it is stated that:

a radical retrenchment and rationalisation of B & I's operations is necessary. Timely and decisive action will be needed to ensure that all services will be operated on an economic basis and the company's cost overheads significantly reduced.

Whatever U-turn there has been in the views of Opposition Deputies since these policy decisions were taken a few months ago, the reality in regard to the state of the public finances has not changed. As well as having limited resources at our disposal, our shipping companies are operating in a market which is limited in the volumes of traffic available. It is obvious that the companies cannot continue to operate at the same level of capacity and frequency as were justified when tourist and commercial carryings were buoyant.

The performance of the B&I Company is being monitored on an on-going basis and the Minister for Transport will be looking to the company to take measures necessary to return its operation to profitability at the earliest possible date. In the last analysis, it can be said that a rationalisation of their operations and adherance to strictly commercial principles will not alone benefit the B & I but will be to advantage of users and the economy in general.

With all due respects to the Minister I have no doubt that his brief was well prepared by some official of the board of B & I. If the Minister had carried out a personal investigation into the activities of B & I his brief would have been quite different.

A major investment was made by the State in Ringaskiddy at the request of B&I. I have no doubt that every Deputy from Cork, irrespective of party affiliation, will bear me out in this. Every possible effort was made by B&I to get a commitment from the Government for a very costly investment in Ringaskiddy. The Cork Chamber of Commerce approached the tourist industry and everybody who had any influence with the Government was approached by B&I in an effort to get this investment. It is hard to understand the little effort made by the company to establish a viable service in the Cork area. Cork was made the scapegoat for the inefficiency of and blunders made by the management of B&I. The purchase of the Jetfoil was made without proper market research. If the Minister puts himself to the trouble of investigating that, he will find that there was no market research in an investment which in a short time proved to be disastrous.

We all know what happened to the Cork-Pembroke service. B&I based that service on one very important thing: that the British authorities would invest moneys in roads and provide the proper facilities in the Pembroke area. Alas, B&I failed to do their own homework again. I could talk about this company all night because during that time I was a member of the Cork Harbour Commissioners and took a particular interest in the development at Ringaskiddy and the work of B&I. As soon as the development commenced one would have expected that B&I would be prepared to develop the service, but suddenly they were silent. I wondered at the time what was happening because here was an incentive for the B&I to develop and, let us bear in mind, the costly investment in the Ringaskiddy area was taxpayers' money.

The withdrawal of B&I from the Cork-Pembroke service had a disastrous effect on tourism and trade in the southwest area. The Minister mentioned that he had been in the Cork area, but let him go there now and visit some of the hotels. He will see the cancellations of bookings. There is also grave concern in the Kerry area as regards the effect on tourism and all associated with that industry. They are concerned about the distance from Kerry to Rosslare. Not only will the industry in Kerry be affected but industrial development is very much dependent on having shipping facilities near at hand in Cork.

The withdrawal of B&I is a major loss of revenue directly to the port of Cork and also a loss of employment to shore and sea going personnel. My colleague, Deputy Gene Fitzgerald, produced statistics on employment and the potential of further employment in the area on the completion of the Ringaskiddy development. The overall development of Ringaskiddy, on which nearly £70 million has been invested, is very much at risk now. If it were known internationally that a State-owned company pulled out of Cork harbour, specifically Ringaskiddy, it would be an indication of a lack of confidence by the State in the venture and would make it very difficult to attract industry and other shipping services to the development.

All the Deputies from this side of the House join with me in saying that this blow to Cork will be felt for quite a long time. I hope the Minister realises the damage done to this great port by what has happened. This port was always known as the gateway to Europe. I was very sorry to hear the Minister for Foreign Affairs say in a recent statement that the development in Ringaskiddy could be completed in a short time if an industry was established there. He was actually saying if an industry was established there the completion of that development would be sanctioned by the Government. Surely there is employment in the development and the completion of the harbour.

Why wait for the establishment of an industry? Is it the Government's policy to wait and see and when the opportunity arises Cork harbour is not ready to avail of it? I hope I am not misinterpreting what the Minister for Foreign Affairs said. It was a blow to Cork. It was felt by all that a properly run service to Cork could be a viable one and that the policy of B&I was to deliberately run down the service and make it uneconomic.

I do not fear contradiction when I say that the purchase of the jetfoil and establishment of the Cork to Pembroke service were disastrous decisions by the B&I board. Now they come to the Minister with various statistics twisting the facts. I hope, even at this late stage, the Minister will spend some time examining the financial implications of the withdrawal of B&I from Cork. B&I became very silent when we were near completion of the Ringaskiddy development. Every facility was made available to them by the Cork harbour commissioners. As a member of that board I was aware of the tremendous relationship between the Cork harbour commissioners and B&I. I was also aware of the great co-operation of the workforce there.

Those who know Cork city and county as well as Kerry know that that area attracts the largest percentage of tourists. It is sad to find that the link with the UK, which existed for over 150 years, has now come to an end because of the inefficiency and the lack of imagination of a State-sponsored body.

The amendment to the motion is the most milk and water amendment I have ever seen in this House. There is reference in the last sentence of the amendment to the recommendation of successive Governments for a reversal of the decision and to the continuing efforts of the Minister for Transport to provide a summer ferry service in 1983. I should like to hear of the efforts that have been made by the Minister in that regard. The Minister should tell us also whether there is any light at the end of the tunnel for Cork Harbour, the city and the county. I should like to be able to return to the constituency and tell the people that some alternative service for the region is being investigated. If the amendment has any weight, we should be given this information. Unfortunately, though, there is not in the Minister's brief any indication that there is light at the end of the tunnel or that there is to be any compensation for the Cork area in respect of this loss.

Another aspect of this matter relates to the lack of facilities for traders in Cork who are in the export business. I have been on a number of deputations to the Minister in this regard. Whatever facilities were made available were not suitable for the traders concerned. People on those deputations have made it clear to the Minister that much business is being lost because of the failure of B & I to provide the services needed to facilitate the export trade in the Cork region. The Minister may recall his promise to the last deputation to have this matter investigated with a view to finding out what might be done in that respect. Having regard to the record unemployment figures in Cork, we are pleading with the Minister this evening to give serious consideration to this motion. We can prove that the service from the Cork region can be very viable. Indeed, that has been proved to the B & I but members of the board are hiding behind the Minister for protection. Undoubtedly, a re-examination of the finances of the B & I as well as of the commitments they gave without knowing exactly what was concerned would lead the Minister to tell that inefficient board to go back to Cork and to make their operations there viable. The Cork region has always been viable in terms of shipping but for some reason which we may never know the B & I have gone out of their way to downgrade the area in that respect. Can it be that they are trying to bring about a compact area of shipping between Rosslare and Dublin and to forget about Cork? That has been suggested. There are Deputies present who are fully aware that the B & I have done everything possible to downgrade Cork. This was obvious when, at a time that millions of pounds were being invested in the development of the B & I services, the company were silent and were running away from the development of any such services.

It has been obvious for some years that this company have deserted the tourist and commercial trades in the Cork and Kerry regions. I regret that the Minister saw fit this evening to misinterpret what the motion is all about. I am confident that his brief was prepared by a B & I official whereas there should be an investigation into the entire workings of the company with special attention being focused on the development of their services in the Cork area.

Irrespective of which party we belong to, we must all agree that a terrible injustice has been done to Cork by the B & I. I can only express the hope that one day someone in the shipping business will move into the Cork area and prove the B & I wrong.

As the Minister read from a script, perhaps we could have a copy.

Certainly.

Debate adjourned.
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