Eamon Gilmore
Question:52 Mr. Gilmore asked the Minister for the Marine and Natural Resources the position regarding the Jeanie Johnston project; and if he will make a statement on the matter. [9899/02]
Written Answers. - Jeanie Johnston Project.
The Deputy will no doubt be aware that following the decision taken last June by the promoters of the Jeanie Johnston project to postpone planning for a voyage in 2001, I 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 report to me on a long-term strategy for the vessel after completion. The focus group completed its work and presented its report to me in January this year.
In its report, the focus group estimated that the final cost of the project will be €14.35 million; it has overrun by more than €10.16 million, or 377%, on its original estimate of approximately €3.81 million and by more than 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 US/Canada voyage, or for a long-term future for 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 the project was inadequately managed and that the Jeanie Johnston company was not an appropriate platform for planning, designing or management of a future role for the project. 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.
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 took the view that a structured winding down of the project, led by Kerry County Council, is the only practical way to avoid the forced disposal of the Jeanie Johnston vessel and the promoting company being forcibly wound up. The Government agreed that in the event that Kerry County Council initiated a process leading to a voluntary liquidation of the project, all State agencies involved should co-operate in this approach.
Since the Government decision, my Department has taken the lead in engaging all Government Departments and State agencies involved in this project in considering, as a matter of urgency, how best they can assist the council, within the framework of the terms and conditions attached to their grant allocations, in bringing about a satisfactory outcome for theJeanie Johnston project. As a result of this consultation, Kerry County Council has been able, within the last week, to take the first steps towards implementing an initiative which will defuse the immediate financial crisis; allow the ship to be completed; ensure that the trade creditors can be paid in full; commence the winding-up of the Jeanie Johnston Company (Ireland) Limited in a manner which allows Kerry County Council take ownership of the vessel; and seek to agree with other State stakeholders on the future use of the vessel including its possible use as a visitor attraction in 2002.
This initiative by Kerry County Council is essential in order to create space for considered reflection by State stakeholders on options for the future use of the vessel which would minimise the crystallisation of contingent liabilities. In particular, I am keen to see an outcome which avoids the need to recoup to the European Union, funds that have been allocated to the project under the tourism operational programme and Leader. In this regard, my Department will continue to support the council in their efforts to identify a way forward which avoids an unstructured dismantling of the project and secures a role for the vessel, which meets the objectives of the State stakeholders, including minimising their financial exposure.