asked the Minister for Communications the total loss to the Exchequer arising from the sale of the M.V. Irish Spruce; and if he will make a statement on the matter.
Written Answers. - Sale of Irish Spruce.
4.
The Irish Spruce was sold by public auction on foot of a court action brought by the holders of the ship's mortgage against its owners. The vessel was never owned by Irish Shipping Limited but was leased to that company by its owners. The price obtained at the court auction was $5.0 million and this amount was in line with existing market expectations and compared well with the price obtained recently for similar Panamax ships. New Panamax ships can now be built for approximately $15 million.
The cost of building the Irish Spruce at Verolme, that is £30 million approximately, was substantially in excess of the world market price of Panamax vessels and the major part of the cost can be categorised as ship yard subsidies. Accordingly, the major element of the apparent loss can be attributed to the vessel being built at Verolme.