asked the Minister for Tourism and Transport if, in view of the fact that the Cork-Swansea and Rosslare-Fishguard ferry services are in direct competition with one another, consideration will be given to the provision of similar subsidies for both services as the Cork-Swansea service will receive subsidies totalling £1.1 million in 1987, so as to ensure that the Rosslare-Fishguard route can maintain its competitiveness; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Ferry Services Funding.
7.
The answer to the Deputy's question is in the negative.
Deputies will recollect that I explained to the House on 29 October that the previous Government had decided in 1986 to make available to the promoters of the Cork-Swansea service a grant of £500,000 to assist in the start-up of the service. Payment of the grant had commenced before the present Government took office but I honoured the commitment already given and the balance of the grant was disbursed by my Department to the promoters. The £500,000 represented a once-off grant which was given in exceptional circumstances.
Has an application been made by the Cork-Swansea ferry for a further grant in 1988? If the application has been submitted, what is the Minister's attitude to it?
I have nothing to add to what I said in my reply.
It is a natural follow-up to the question submitted. If the contents of the letter refer to future subsidies to Cork-Swansea and Rosslare-Fishguard ferry services, surely that information should be available?
When the original £500,000 was provided, it was made quite clear by the then Government — which Deputy Allen supported — that it was a start-up grant.
It is obvious that the service needs to be subsidised. If the funding is not made available by the Government in 1988, is the Minister prepared to allow the service to be discontinued?
I am informed by the company that the service will continue in 1988.
Irrespective of State aid?
Is the Minister satisfied that the structure of aids and subsidies will enable all the services involved to continue in 1988 and is he convinced that they will not distort equal competitiveness between the companies involved?
The Cork-Swansea service is provided by a private company. The B & I operated on that line for years and for their own commercial reasons decided to discontinue the service. A group of people in Cork decided to club together to try to make this service available. Kerry County Council, Cork County Council, Cork Corporation and a county council in Wales, with the provision of £500,000 from central funds, launched this service. As I have said to Deputy Deasy, I am informed that the service will continue in 1988.
What is the position with the Rosslare-Fishguard service?
That is a joint venture between the B & I and the foreign owned company, Sealink. I have received no notice that that service is to be discontinued.
It is wishful thinking on the part of the Minister to assume that the Cork-Swansea service will continue next year. Surely he can give me a straight answer to a straight question. Has he received a request for a further subsidy from the Cork-Swansea operators for next year?
I received requests during the year 150,000 times and I answered questions on the matter in this House. I have been told by the people in Cork that the company intend to continue the service in 1988 and I believe what Corkmen tell me.
Has a request for a subsidy been received by the Minister's Department——
I cannot allow this to develop into an argument. The Deputy is pursuing that single aspect of the matter. He should raise it in another way.