Dáil Éireann debate -
Tuesday, 12 Feb 2002

Vol. 548 No. 2

Adjournment Debate. - Jeannie Johnston Project.

Mr. Coveney

I cannot be accused of making an election speech as this ship is not situated anywhere near my constituency. The last few days have seen the Jeannie Johnston project receive a significantly bad press. My purpose in raising this issue is not to mount further criticism on a project that has been attacked from all sides recently due to its massive overspend. Everyone who has taken an interest in the Jeannie Johnston project is well aware of the overspend and budgetary mistakes that have resulted in a project estimated to cost €5.5 million in 1999 costing nearly €15.3 million to date. Kerry County Council and the Department of the Marine and Natural Resources on two occasions have had to put rescue packages together to ensure the project continued.

It is stating the obvious to say the project is now in crisis but every crisis presents an opportunity. Many people seem to be convinced that we should close down the project and cut our losses. This would be a great mistake. If we set aside the massive overspend and consider the capital asset that is now the Jeannie Johnston our views on her future may change. She is a magnificent tall ship, the largest wooden ship ever built in Ireland with three times the capacity of Asgard II, our national tall ship. Rather than aborting the Jeannie Johnston in stillbirth we should be giving her the chance to live and prove herself on the ocean, for 2002 at least, now that she is virtually completed anyway.

I agree with the principle that the vessel should not cost the State significant sums of money to run on an annual basis in the long-term. However, so much public money has been committed already it should not be wasted by abandoning the project when there is considerable scope for a long-term profitable solution.

The following measures could amount to a solution. In the short-term all financial obligations must be sorted out and a clean title of ownership put in place. I understand the trade debts could be paid off with the existing resources available from the sale of the dock which was specially constructed for the project. The ownership of the vessel should not be handed over to Kerry County Council or to any local group in Kerry, as clearly the expertise for a project of this scale can only be found nationally. Instead, the ship should become an asset of the State – a national asset – and given to an organisation or professional team of people, nominated by the Minister if he sees fit, with proven management experience to run as a sail training vessel for the remainder of 2002. If this revenue commitment from the State could be secured for nine to ten months with no long-term financial commitment it would give breathing space and an opportunity for a long-term plan to be put in place, combining a public private partnership, when the vessel has proven herself at sea.

Now that the capital expenditure has been spent and there is no way of getting it back, there is no reason the project cannot be a success in the future. Denmark, for example, has three vessels the size of the Jeannie Johnston and all are being run successfully. Germany has a similar number and so do most Scandinavian countries. In the US the Pride of Baltimore is an example of a ship that is funded 30% by the city of Baltimore and 60% to 70% privately.

The State has spent €10 million and I want to see this ship given the chance to return a dividend to the State, rather than being abandoned. With a proper management team in place the opportunities for this ship are huge, at a relatively low cost. The promotional voyage to the US that has already been planned as a North-South project would be very positive and welcome, particularly considering the events of 11 September. The ship could be used as a training vessel for nautical students in the new national maritime college in Cork, who will need a vessel for sail training anyway.

Most importantly, the ship could be used for the provision of rehabilitation voyages for troubled young people. There is significant evidence of rehabilitative success with juvenile offenders in similar vessels, particularly in Scandinavia. The team work, discipline and bonding involved in crewing such a vessel can add significantly to self-esteem, confidence and self-discipline. When one considers the massive annual expense to the State of housing or incarcerating juvenile offenders with little success in rehabilitation, funding this ship may well make economic as well as social sense.

I ask that this ship be given an opportunity to give something back to the State. It has taken a massive amount of money to build. With the right team and management structure in place we could be proud of this ship in ten years time.

Mr. Byrne

I compliment Deputy Coveney on raising this issue and on his well researched presentation.

The Jeannie Johnston project involves the construction of a replica of the famine vessel of the same name which carried Irish emigrants to the United States and Canada during the middle of the 19th century. It had been intended that the vessel, when completed, would embark on a tour of the US and Canada where it would illustrate the historical famine era links between Ireland and those two countries and generally demonstrate the nature of the cultural and social contribution made by Irish emigration during that period. The project was commenced in 1996 and is being run by the board of management of the Jeannie Johnston Company (Ireland) Limited, a company limited by guarantee.

The Department of the Marine first became involved in June 2000 when the Minister agreed to provide grant aid of up to €2.54 million to enable completion of the project. However, a due diligence report commissioned by the Department identified that additional funding would be required for the completion of the project and following the drawing up of a rescue plan the Minister sought and obtained Government approval in April 2001 to provide additional funding, bringing the total allocation by the Department to the project to €3.97 million.

Since the Government decision of April 2001, the grant from the Department of the Marine and Natural Resources has been allocated solely towards ensuring the vessel is completed to high standards of quality and safety. The company failed to complete the vessel in time for a voyage to the US during 2001, due mainly to difficulties with electrical work on the ship. It is now due for completion towards the end of this month.

Following the company's decision to postpone the voyage in 2001, the Minister set up a focus group comprising the principal State and private stakeholders in the project to identify the options for the future role of the project and to work on a long-term strategy for the vessel after completion. The focus group completed its work and presented its report in January this year. It estimated that the final cost of the project will be €14.35 million. It has overrun by €10.16 million – 377% – on its original estimate of approximately $3.81 and by over 18 months on its originally scheduled completion date. The group also confirmed that the project to date has not delivered on any of its original objectives and the project promoters have been unable to develop credible plans for a voyage to the US and Canada or for a long-term future for the vessel.

The Dunbrody, which is berthed at New Ross and in which I am heavily involved, overran by approximately £1.9 million but it was completed for £4.9 million. It was thought that the Dunbrody should sail to the US but I understand the cost of sailing would be in the region of £750,000, a huge amount of money. There was no guarantee we would get back the money. The good news is that 60,300 people visited the Dunbrody in its first year. I say this because it could apply to the Jeannie Johnston and I agree with all the Deputy said. Last Sunday, there was an open day when 1,300 visitors went on board the vessel. It is a real prospect for earning money. Most people who pass by the quayside at New Ross stop out of curiosity and go on board the vessel.

The focus group concluded that there were serious deficiencies in the original concept in terms of its planned role and in the estimate of the benefits envisaged for the project for the future. That project was inadequately managed and the Jeannie Johnston company was not an appropriate platform for planning, designing or management of a future role for the project, therefore, they are in agreement with what the Deputy said.

In essence, the focus group has not identified a long-term use for the vessel, which will not involve the State in ongoing subvention to the project. Moreover, the ability of the focus group to assess the costs and benefits associated with various options for the use of the vessel, or to identify private sector support, has been hampered by the extent of the financial crisis surrounding the project.

Such were my concerns about the current financial state of the project highlighted in the report that I brought the focus group report to the immediate attention of my Government colleagues. In doing so, I expressed the view that the perilous financial state of the promoting company is likely to lead to its imminent forced winding-up unless the company and the State agencies involved can agree on a structured voluntary liquidation of the project.

An Ceann Comhairle

The Minister of State has gone way over the time.

Mr. Byrne

The Government is very keen to do more or less what Deputy Coveney said in bringing all the agencies together to see what, if anything, can be done to ensure the ship is completed and that it will benefit the area. I am not sure if he was suggesting it should be taken to Cork.

The Dáil adjourned at 10.15 p.m. until 10.30 a.m. on Wednesday, 13 February 2002.