Vol. 399 No. 10
18 Mr. G. Reynolds asked the Minister for Tourism and Transport if he will outline the operational loss or profit situation in the B & I Shipping Company for 1989 when capital costs are taken into account: and the projected situation with regard to 1990.
In 1989, B & I's trading profit, before interest, was £2.7 million. After interest charges of £4.2 million were added, a net loss of £1.5 million was incurred. In 1990, the company's forecast trading profit is £2.1 million. When projected interest charges of £3.7 million are included, the B & I expect to incur a net loss of £1.6 million. The foregoing figures take account of scheduled capital repayments of £5.2 million by B & I in each of the two years.
Can the Minister confirm that he has received an offer for a merger? Can he confirm that he has now decided to sell all or part of B & I?
That seems to be a separate question.
It is related to the problem——
It may be related but it is worthy of a separate question.
Is it the Minister's intention to allow the company to trade into profits so that it can then be sold off and he can then take up the offer which has been made to him?
I recently asked the board for a report on what options they saw available to them. During the last few weeks — I cannot recall the date — they gave me a report which indicated four or five options and their preferences. I am looking very closely at them and I may require some outside expertise to examine them in conjunction with the Department. As soon as I have examined those options we will select the best. I have made it clear from this floor that I have not ruled out any option — trading back to health, joint ventures and other options — which may be available to me.
Can the Minister tell the House if the capital costs which are mentioned in this question, and which have built up on the company's balance sheet are a disincentive to potential buyers of B & I? Can he confirm that he has received an offer to purchase B & I from another Irish company? Has he received any other offers?
I will take the last point first. I made it clear before that I have received — and I stress this — an unsolicited offer from one particular organisation. I have left that aside and I have not encouraged other offers at this time. In fairness to the board and the staff of the company, there has been a very generous transformation of the company's affairs and I extend my thanks to them for that work. I have left all that aside and I am dealing now with the options put forward by the company. I do not rule out any option, including disposal.
Can the Minister quantify the cost to the company of the seemingly endless strikes in B & I? This must be a major factor in the losses which have occurred for several years past.
The industrial dispute——
We are entering into a new area now.
——which went on for four days from 7 to 10 May — this is an estimate — would reduce the company's revenues by approximately £300,000. There are many ways of calculating that figure. I stress that is an estimated figure. That is the order of loss that results in lost days.
