asked the Minister for the Marine the progress which has been made in re-establishing a profitable Irish ship building, ship repairing and marine servicing industry; and if he will make a statement on the matter.
Ceisteanna—Questions Oral Answers - Ship Building Industry.
7.
I assumed responsibility for the industries mentioned last October. Progress in re-establishing the ship building industry is difficult for two basic reasons: (i) over-capacity in the shipping industry which has greatly reduced the level of demand for ships; (ii) the state of the public finances which severely limits the scope for assisting the industry at present.
The world ship building-ship repair scene is extremely competitive with too many shipyards chasing too few orders, and many yards are receiving generous State assistance to stay in business. It is against this background that the options available for developing the ship building and ancillary service industries, including disposal of Verolme Cork Dockyard as a going concern, are being examined in my Department.
The Minister has indicated that the two factors concerned are over-capacity in the shipping industry and the state of public finances. If they are the reasons for the lack of development in the job creation area and improvements in the ship building industry, why did his Government include in their manifesto of February last year a statement that they intended to embark on the re-establishment of a profitable Irish ship building, ship repairing and ship servicing industry? Why did they set that out as a goal and as an objective when they are now telling us, less than a year later, that little or no progress is expected in this area?
Changes can come very quickly in the shipbuilding industry. It is 12 months since that statement was made. However, I am still confident this country needs such a shipyard. The Deputy referred to shipbuilding, ship repair and ship servicing. Ship repair and ship servicing are essential and if we had the necessary facilities we would be in a position to build the ships if we got the orders.
The question of the Cork dockyard is one we in the Department would like to see resolved. We would also like to see the shipbuilding, ship repairing and ship servicing being reopened. This is a matter for the liquidator who was called in by the courts. We are keeping a keen eye on this but we have no discretion in this area. However, we are asked for our observations and I can assure the Deputy that it is our firm intention to do our utmost, within the constraints placed upon us because of the appointment of the liquidator, to ensure that we can reopen this dockyard.
I would draw the Deputy's attention to the guidelines for aiding shipbuilding within Community countries. There is a world-wide crisis in the shipbuilding industry and this crisis continues to deepen together with the imbalance between shipbuilding capacity and demand, causing prices to fall to a level which is often below the fixed cost of European shipyards. The price problem has been aggravated by the development of the cost competitive capacity of third countries, particularly in the production of standardised vessels. We are anxious to have a shipbuilding industry in Ireland.
Little has changed since February last. May I bring the Minister's attention to two specifics in regard to ship repairing and shipbuilding? Is he aware that previous Governments invested heavily in the development of Howth harbour and that there exists there a ship repair service whose charges are so high that most of the fishermen, if not all of them, travel to England where they can get a quicker, more efficient and cheaper service? That is something he might look into so that some on-harbour jobs would develop at Howth.
The Deputy is raising a specific matter.
It relates to shipbuilding and ship repairs.
It is a specific matter which is worthy of a specific question.
With regard to the Verolme shipyard, would the Minister not accept that the current approach of the liquidator, selling off piecemeal plant and equipment, is undesirable? Surely the Government should, and can, influence matters by taking steps to invest in the purchase of the plant in its entirety to preserve it as a unit?
I assume Deputy Sherlock's general question referred to the shipbuilding industry rather than——
It referred to ship repairing and marine servicing as well.
There is the question of price competitiveness between Howth and the west coast of England. I have had long discussions with the fishing industry from Howth and they have made abundantly clear the difficulties arising in that area. We have taken into consideration the fact that the fishermen have to cross to England and spend a number of days there while waiting for the repairs to be carried out, and when we add those costs to the cost of repairs carried out in England and compare them to what it would cost to have these repairs carried out in Howth I do not believe the cost would be very much greater.
They still do it.
I told the fishermen I would look at this when I visited them but I have had no further contact with them since that meeting. I can only assume they are reasonably satisfied at present.
The are not entirely satisfied.
I will meet them any time. My doors are never closed.