I move:
That Dáil Éireann calls on the Government, which already owns 48 per cent, to acquire the full equity of Verolme Cork Dockyard and ensure its continuance as a shipbuilding and repair yard and provide also for heavy engineering business which will arise from the offshore oil exploration programme.
In proposing the motion I must express the view that it would be nothing short of a national scandal if the Government did not ensure the continuance of Verlome Cork Dockyard, a dockyard that must be unique throughout the world inasmuch as at its closure date it will be in a position to discharge all its responsibilities to its creditors in full. The Minister, the Government, and others must realise that that unique position in modern business terms would amount to one of the most unsatisfactory close-downs of all time. There is not a shipyard in the world in such a favourable financial position at present. I understand that the management of the dockyard presented to the Government last May at least five options that would allow them to continue trading. All the options were refused by the Government. Since then many efforts have been made to resume talks with the Department, and the Government, on the possibilities for the yard but to date those talks have not taken place.
It is necessary to recap some of the historical aspects of the dockyard. I should like to start with July 1980 when the Government announced a shipbuilding programme for the yard under which four ships were to be built, one bulk carrier, two fishery protection vessels and one research vessel. To date only the bulk carrier and a fishery protection vessel, a P31, have been completed. At that time trade unions, workers and management agreed that rationalisation would be inevitable but they accepted it for the purpose of ensuring a viable future for the yard and the remaining workforce. I should like to emphasise that any amount of redundancy payment is a poor substitute for jobs and employment.
On 20 April 1983 a delegation from the trade union group was informed by Minister Bruton that he hoped to have an announcement for the yard before May 6 but no such announcement was made. On May 23 of that year the Minister promised again to have a Cabinet discussion on the following day, May 24, on the question of Verolme Cork Dockyard but as far as can be ascertained no discussion took place.
Those unfilled promises, and the allowing of orders to go to Japan by a former Minister for Transport in another Coalition Government, from 1973 to 1977 resulted in the dockyard personnel being totally frustrated, almost to the point of being annoyed. That was the beginning of the end for the dockyard and it was initiated by a Coalition Government. The lid is now being put on it by another Coalition Government. The uncertainty caused by the incidents I have outlined reduced the confidence of the workforce. Their energies were sapped and they were demoralised. The Government's intention to abandon the yard was indicated clearly during that time. I could go back further and recall that in 1965 a person who is a Member of the House today indicated in a northern constituency in that general election that if the Coalition Government were returned to power the dockyard would be closed. That was a significant commitment.
The commitment of the Government to maritime affairs is indicated further by the recent liquidation of Irish Shipping. It appears that Government policy is that at the first sign of a problem the concern should be closed and the problem will disappear. In my view, that is an unacceptable answer. That view is held by many other people. It would be better if the Government negotiated with people and ensured the continuation of some of these enterprises that they seem happy to close.
Further significant evidence of the Government's understanding of the position of the dockyard is underlined in the terms and conditions of redundancy given to the workforce in the last year. With the delivery of the bulk carrier in 1983 the conditions of redundancy were announced. It was stated in those conditions that there would be an orderly delivery of the P31 and the bulk carrier and, by implication, the workforce could do what they liked after that. It is of major importance and significance, something that is adding to the frustration of the Cork people, that the senior Minister from that area is conspicuous by his absence concerning the affairs of the Cork region. His silence was deafening on the problem in Dunlop, on what happened in Fords, on the provision of a ferry service between Cork and Swansea, on the liquidation of Irish Shipping and now on Verolme Cork Dockyard. Nevertheless, even at this eleventh hour it is not too late for the Government to acquire the remaining 52 per cent of equity of the dockyard from the partner on the board, RSV, Rhein Shell Velome, the parent company already in liquidation.
It does not appear to be fully realised that at full production the number employed at the dockyard in the period 1972 to 1974 was 1,400 people. By 1983 they had been reduced to 1,100, gradually trimmed down to the recent figure of 980. Those figures do not include the many temporary staff who are taken on, often as many as 40. The current number in employment in the dockyard is 98 and it is intended after the intended closure — I again stress intended closure because I hope that even at this stage the Government will see some light and will not allow the dockyard to close — about 20 will remain in employment. What is to become of the highly skilled personnel of the dockyard? What of the present apprentices at various levels of their apprenticeship who will find themselves in limbo because of the lack of any prospective employment for them to complete their apprenticeship? This is a very serious aspect of this matter. They will be joining their colleagues from Irish Shipping whose training is also jeopardised by the recent Government decision.
This Government stand indicated for allowing Irish ships to go to Britain for repair. Of course there was a variation in the labour charge of £5 sterling in the British yards and £7 per hour in the Verolme dockyard, but what has not been emphasised or considered is the higher energy costs in Ireland, which were discussed last week when we were dealing with the motion on electricity charges, the higher taxation, both direct and indirect, and higher telecommunications and infrastructural costs. All these charges increase the rate per hour charged by Verolme. What is important is that the output per person compared with workers in other dockyards is not in question. We must recognise that fact. Despite criticism levelled at Verolme workers by many commentators, their output per hour per person compares very favourably with that of similar dockyards to which Irish boats were sent for repairs. Let me emphasise that these extra costs in Ireland were responsible for the differential, not a lack of confidence in the work of the Verolme employees.
Would it not be appropriate for the Government to subsidise the yard to maintain employment, just as every other national government subsidise their shipbuilding and repairing operations, and make up the difference in cost? In that way the Government would maintain employment in the yard and support the spin-off industries and businesses which are dependent on places like Verolme. Let me repeat, that Government policy in this matter is seriously incorrect.
I was pleased recently to read a reported statement that the Fine Gael Deputy, Deputy Coveney, supported the proposal before the House this evening. In a banner headline Deputy O'Sullivan, a member of the Labour Party, was reported as saying that the dockyard must be saved by the Government. Those two Cork Deputies have spoken in favour of keeping the dockyard open. All that is left for them to do tomorrow night is to vote with us and ensure that this motion is passed.
At least two more protection vessels of the calibre of the P.31 could be ordered in Cork dockyard. The Government could request the EC to provide the funds necessary to build those vessels and so keep the yard open. It does not need a great stretch of the imagination to realise that with the advent of two more nations, one of whom has a powerful fishing fleet, we will need another P.31 boat, if not two, in our south-west waters.
I want to emphasise the importance of the strategic location of Cork dockyard. The facilities there include the most modern sophisticated equipment and an outstanding operational machine shop. There are immense possibilities for this yard to remain in business. If the Government allow the dockyard to close, it will be a further indictment of their inability to understand the situation, to adopt policies, to establish commitments to keep an industry like this in operation, to leave behind the uncertainty and insecurity this Government have created over the yard. They should restructure the operation and provide a use for the skills which already exist there and safeguard employment which is so badly needed. If they do that, I have no doubt that the workers of that dockyard will respond in a manner befitting their loyalty and commitment to themselves, their families and the country.
In the case of Cork Verolme Dockyard the Government are being given a unique opportunity to show their willingness, if such willingness exists. They will help the people of Cork by example to turn the economic tide in Cork's favour and in favour of the nation as a whole. Cork people know that we have the ability, the tenacity, the will and the determination in the Cork area to succeed over all adversity, including the adversity of a Coalition Government, if we were given that measure of support which the Government ought to be capable of giving.
We cannot criticise the Government for all the industrial failures in the Cork area, far from it. They may not be 100 per cent to blame, but the Government have a 48 per cent stake in a company which they are allowing to cease operations, a company that will clear all their debts. It is not too much to ask the Government to re-examine the position, to listen to the people, to Government Deputies, to Fianna Fáil Deputies and to the workers of Cork dockyard and to be prepared to keep that dockyard open and thriving on behalf of the nation.
It is well to realise that in the history of the dockyard there have been times when its existence was threatened, but because of commitments by Governments at that time, particularly Fianna Fáil Governments who were always prepared to help to secure the employment of the workforce, assistance was given and the workers responded magnificently. The question of our neutrality must be in our minds during this debate because of recent happenings at Chequers. Where will the naval fleet, including the sophisticated, modern, well equipped P.31, go for maintenance and overhaul? Will they all be sent over to British docks? It is mind-boggling to think that this will happen but I leave it to the people to judge their actions.