asked the Minister for Defence if any other countries have applied for or received licences from the Department to build P.31 type naval vessels; and if he will make a statement on the Government's policy in regard to the issuing of such licences.
Ceisteanna—Questions. Oral Answers. - Naval Vessel Licences.
6.
(Limerick West): Licence agreements to build a P.31, L.E. Eithne, type naval vessel were concluded last year with four shipbuilders from abroad. The main features of the licence are: it provides for the payment of an initial fee on hand-over of the design documentation and the payment of royalties on vessels of the type built; it does not affect the right of the Minister to have further vessels of the type built. The issue of further licences will be considered if requests for such licences are received.
Can the Minister say which are the four countries to whom we have already issued licences?
(Limerick West): One to the United Kingdom, two to the Netherlands and one to Singapore.
Can the Minister advise us which countries, other than those four, have made application in the past and whether any applications are at present being examined by his Department? Will he say whether one of those countries is Chile?
(Limerick West): There are no applications at present under consideration by my Department.
Has there been any application from Chile in the past?
(Limerick West): I do not have that information but if the Deputy puts down the necessary question I will gladly answer it.
I am constantly invited by the Minister to put down further questions. The question has been put down and I want to know the Government's policy in regard to whether we are prepared to trade with any country, in particular Chile, in the issuing of these licences. The Minister must be well aware of the press speculation that that country is currently actively seeking a licence from this Government for the building of these ships?
These supplementaries are leading to argument because the Minister has replied to your question.
(Limerick West): I have given the Deputy the answer to the question he put down as to whether any other countries have applied for or received licences from the Department.
I would like to know the Government's policy in this regard. The Minister has said that there are four countries involved and he has given the terms of the negotiations but in terms of policy can he advise us what will be the Government's attitude in the future if they receive an application from a country with a record such as Chile or Argentina——
The Deputy has raised a question in relation to that country.
(Limerick West): Each application is examined on its merits and due consideration will be given to it.
Will an application from Chile or Argentina be considered?
The Deputy has been advised on how to proceed in respect of information in relation to that country.
(Limerick West): The question does not arise because I have not received any applications from there.
May I ask the Minister if his Department have placed an order with a ship building firm in Singapore?
(Limerick West): That does not seem to arise under this question.
Arising from the granting of these licences is there a financial consideration involved and, if so, will the Minister give the House the details?
(Limerick West): Yes, there is.
Can the Minister give the House the details?
(Limerick West): No, because it is a tender situation I am not at liberty to disclose the details.
The question refers to the licensing of the P.31 type naval vessel. There is no tendering system involved in that case.
(Limerick West): There is.
Will the Minister explain that to the House?
(Limerick West): There is a tender system involved. The licence provides for initial payment for the design and documentation. I am not prepared to disclose the details of tendering systems, as the Deputy will appreciate.
I am anxious for the Minister to explain how a tendering system could apply in this case. Can he give details of the tendering system?
We have had that question a few times.
I do not think we had.
We did not have the answer.
The question refers to a licence and the Minister is talking about a tender.
(Limerick West): The Department invite bids for the design by tender from a number of shipbuilders. Licence agreements with four shipbuilders were concluded in March-April 1986.
Do I understand the Minister to say that there is no provision for the trading on by a licence holder to a third party for the building of these ships under licence? I understand that Singapore has an agreement with India for the building of three of these ships. Can the Minister clarify whether there is any financial benefit to the State in that regard? Secondly, can he explain if it is correct that any financial benefit that does accrue is recouped by the Government centrally and is not a gain to the Defence Forces who commissioned the design in the first instance?
(Limerick West): The licence agreement provides for the payment of royalties on modifications of the P.31 type vessel. The answer to the other question is yes. In reply to another supplementary I was asked, as late as October 1987 the licensees advised that no order to build a vessel of this type had been received.