I move: "That the Bill be now read a Second Time."
I wish to give credit where it is due. My predecessor, Deputy Woods, is the author of this legislation and I see myself as the facilitator. When I received the bones of the legislation I pursued the matter quickly and that is why the Bill is before the House with such alacrity. Deputy Woods acted diligently on behalf of the workers of Irish Shipping.
My sentiments in introducing this Bill are a mixture of sadness and satisfaction; sadness at the recollection of the demise in November 1984 of Irish Shipping Limited after more than 40 years' service to the State; satisfaction because the Bill acknowledges the exceptional circumstances in which more than 300 employees found themelves because of the liquidation of the company and makes appropriate and equitable retribution in that regard.
Irish Shipping Limited was established by statute in 1947 as a wholly-owned State company. As most Deputies are aware, the company came into operation to meet the economic and trading requirements of the State during the Emergency in World War II. Irish Shipping crews played a significant and heroic role in ensuring that essential goods were supplied to the State during those years. Because of the times that were in it the nature of the service in those early years was often dangerous and difficult and all Irish people owe a debt of gratitude to the crews involved.
When hostilities ceased, Irish Shipping continued and expanded its operations. The company traded successfully for more than 30 years. Its existence underpinned the Irish national merchant fleet. The State for its part was secure in the knowledge that minimum strategic trading requirements could be met with the company's vessels.
As most Deputies know the shipping industry is both cyclical and volatile. In the late 1970s and early 1980s Irish Shipping Limited experienced a downturn in trading. As a result the company found it could not meet its financial commitments and tragically went into liquidation in November 1984. This event had repercussions for the company's creditors, its staff and the State.
The 300 or so staff of Irish Shipping Limited who lost their jobs were perhaps the hardest hit on a human or personal level. Overnight their situation had changed utterly. For them a monster rather than a terrible beauty was born. One day they were in secure pensionable State sector jobs; the next they were unemployed. Many had devoted their entire working lives to the company and found themselves discarded in middleage.
The staff were entitled to and received payments under the Redundancy Payments Acts. The company was not in a position to pay anything more. This was small comfort to the staff who had had an exemplary industrial relations record and who were known worldwide for their high standards of seamanship. They had no opportunity to negotiate any terms or try to rescue jobs. Many in the community sympathised with the staff and this sympathy was shared by Deputies on all sides of this House.
For the State, the collapse of Irish Shipping Limited was unprecedented. The company which in more than one sense was a flagship of the State and of the public sector had disintegrated. The fleet was reduced by almost half. Thankfully, the company left a legacy of highly trained and highly qualified ships' officers and cadets, many of whom have gone on to hold key positions in shore-based employment, for example, as ship surveyors, harbour masters and in ship management and operation. I am sure these people were glad to get those positions. Nevertheless, I think many of them would have liked to continue in their seafaring career. Tragically they did not have an opportunity to pursue their real profession and to go to sea with pride.
A package of incentives was introduced in 1987 to encourage investment in modernisation of the merchant fleet. I am pleased that as a result, and in contrast to the trend in other EU member states, the fleet increased from 142,000 deadweight tons in 1986 to about 190,000 deadweight tons at present. While I am pleased with the shipowners' response to the incentives, there is no room for complacency. We should not stand back and let things happen; we must ensure they happen in the proper context. The fleet and Irish seafarers face stiff competition from other EU member states and third countries.
The Programme for Government provides for a review of the fiscal and regulatory measures affecting our merchant fleet, with a view particularly to enhancing employment opportunities for seafarers. In line with the programme I am currently reviewing ways in which the operating climate for the shipping sector can be enhanced to support the objectives of improved services and standards, the modernisation of the Irish registered fleet and an improved ability to compete. The strategic objective is to enable Irish shipping companies to meet international competition under comparable cost conditions but without compromising on safety or the prevention of pollution. The intention is to ensure the maintenance and creation of employment in the sector and to facilitate productive investment to modernise and expand the fleet.
The review which takes EU shipping policy trends and objectives into account is being conducted in full consultation with the industry. However, to further inform this process the Department of the Marine plans to commission shortly an economic evaluation of the sector which will also address the case for additional support measures conducive to an efficient and competitive shipping industry. In that context the various incentives currently available to shipping sectors in certain other EU member states are being examined. These can lead to a distortion of competition between EU carriers. Considerable differentials in operation and manning costs place European shipowners generally at a distinct competitive disadvantage vis-à-vis flags of convenience. The pressures on European, including Irish, shipowners to move to such registries which offer liberal tax and operating regimes are considerable and growing.
I do not propose at this stage to speak in detail about the provisions of the Bill. It is a short Bill which, I would like to think, has all party agreement. It certainly has the agreement of the victims of the shipping company's collapse. I hope the Bill will be dealt with expeditiously by this House, will go quickly to the Seanad and will be signed into law by the President.
The Bill provides for the setting up of a committee comprised of people from various Government Departments and others. It will examine the various demands and the people concerned, or there representatives where appropriate, will be compensated as a matter of urgency. These matters can be discussed in detail on Committee Stage. The Bill provides the necessary framework for implementation of the Government's decision last December to make ex-gratia once-off payments to certain former employees of Irish Shipping Limited. The commitment I made at that time to introduce the necessary legislation at the earliest possible date has been delivered on with speed.
Under the Bill certain former employees, or the representatives of deceased former employees, will be eligible for payment of a lump sum equivalent to three weeks' pay per year of service up to a ceiling of £50,000 per employee. It is expected that more than 300 people will qualify for payment, at a gross cost to the State of £3.5 million.
Those entitled to payment are persons who, at the date of liquidation of the company — 14 November 1984 — were employees of the company who had at that date at least two years' continuous employment and who make application for payment in the manner to be specified. Only those former employees who are eligible for payment may receive payment, as agreed by the people who negotiated the settlement with the Department of the Marine. In this context I stress that applicants must have been in the employment of Irish Shipping Limited at the date of liquidation.
A committee representing Government Departments is being set up to assist with the assessment of applications once the legislation is passed by the Oireachtas. The processing of payments to the former employees will follow as quickly as possible after the Bill becomes law. I am not trying to rush the legislation but I think the House will agree that the objectives of the Bill are achievable. Urgency is the key word and the sooner I stop talking and let others speak the better.
The committee, which has been acting on behalf of former employees in seeking compensation, has indicated that the measures contained in the Bill are acceptable. I am grateful to the committee for its attitude in this regard. I am grateful also to the officials in the Department of the Marine who gave considerable time and energy to bringing about what is a just and equitable solution to a serious problem affecting a tragically treated section of the community. The officials in the Department of the Marine spent long hours and engaged in hard work to bring about an end to this tragic episode.
I am confident, therefore, that these measures will facilitate a solution to the problem that a sad chapter in our economic and maritime history can be finally put to rest with dignity. I commend the Bill to the House.