Joe Sherlock
Question:15 Mr. Sherlock asked the Minister for Finance the Government's plans for the future development of Verolme Dockyard, Cork; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Verolme Dockyard.
I refer the Deputy to my public statement on this matter issued on 29 June 1990. The contracting parties hope to have all outstanding matters cleared shortly, after which the yard should be reopened by its new owners.
Will the Minister be more precise in terms of when we might expect the yard to become operational? Will he give an indication of the proportion of the formerly skilled workforce which might expect to be employed there?
The yard should be open in a matter of weeks. We are waiting for EC clearance to take it over which we expect in a matter of weeks. We do not foresee any problems in this regard although there was some concern in relation to the workforce and the movement of the floating dock. However, there is a misconception about the floating dock because it was never used as part and parcel of the shipbuilding operation at Verolme. It was never part of the assets sold by the receiver and, consequently, did not serve the purpose about which we read in newspapers, especially in the Cork area. It was only used for repair purposes and was offered to the new purchasers who were not interested in it. It does not signify any setback in relation to Verolme itself. The build-up of staff requires a fine legal point to be clarified in relation to the free exemption clause, the clause put in to protect the State in case of certain eventualities during the first five years. It would give the State the right to repurchase if performances were not along the lines laid down. The build-up of jobs was announced at the time and has been confirmed since by the company. In 1990 there will be 55 jobs; 1991, 120 jobs; in 1992, 230 jobs; in 1993, 310 jobs; in 1994, 390 jobs; and in 1995, 450 jobs. That is the exact build-up included in the business plan of the company for the take-over of Verolme Cork dockyard.
Can I take it, from what the Minister said, that none of the contractual details about which he has spoken is likely to prove an impediment to the take-over proceeding this year?
No. As I said at the outset, I expect clearance in respect of the two small outstanding items within a matter of weeks.