It is a pleasure for me to be here. This is an important Bill and one of its distinguishing features is the speed and thoroughness of the concise scrutiny to which it was subjected during its passage through the Lower House. In the nature of things, this Bill remedies a national tragedy, a shameful interlude in our history which began in 1984 when the then Irish Shipping Company went into liquidation.
In advance of my referring to my notes, I would pay tribute to my predecessor in office, Deputy Woods, who is the author of this Bill. It is an excellent Bill which seeks to remedy a national tragedy, and it remedies that tragedy to a certain extent. However, it cannot undo the psychological damage done to men and women who were seafarers by nature and by action. Their psychological hurt about losing their jobs cannot be undone — some of them were never to work again. Some of them got work as harbour masters or port controllers etc., but, they never returned to their original profession — the operation of ships at sea.
Irish Shipping had a proud record, a record second to none in the context of the Second World War. The ships were manned — if I may use that politically incorrect expression — by men of great courage and bravery, who sailed the high seas with the goods and chattels which were so necessary to an island nation at the time; men who foresaw when they left this country to collect their cargoes that the trips out and back would be an adventure where their lives would be at stake. For that reason, it gives me great pleasure to pay tribute to Deputy Woods and to my colleague Deputy G. O'Sullivan, who was of great assistance to me. One of the complaints about this Bill was that it was not brought forward soon enough. Speed can sometimes do damage and deliberation was the key in the context of this Bill.
I welcome the opportunity to present this Bill to the Seanad and to hear Senators' contributions. When I introduced the Bill in the Dáil last week I did so with mixed emotions. Like many others, I regretted the liquidation of Irish Shipping in November 1984 and its consequences for so many people. On the other hand I am pleased to introduce a measure which enables us to give due and meaningful recognition to those most directly affected by the liquidation, the staff of the company.
The collapse of Irish Shipping Limited was a traumatic event in the history of the State. As with many other traumatic incidents its victims were wounded suddenly and deeply, without any warning. This Bill represents, I hope, a final point in the healing process. I am not sure if it is a final point of the cure, but it is certainly a final point in the healing process, as far as legislation can do that.
Irish Shipping Limited came into operation to meet the State's trading requirements during World War II. The fortitude of Irish Shipping crews helped secure the supply of essential services to the State during those difficult years. I fervently hope that the heroism of those involved will never be forgotten by the State.
Irish Shipping Limited continued to operate and expand after the war years. For a generation of our school children the operations of the company were an important part of the geography lesson; the movement and location of its vessels in different parts of the world were followed with interest. I recall, as a relatively young schoolboy, our geography lessons being given in the context of the location of Irish ships on the high seas. It was instructive and I recall it with great fondness. It is rather unusual and ironic that I should today, almost 40 years later, introduce a Bill which will lessen the hurt that was done to those people in November 1984.
The State for its part was happy in the knowledge that the existence of the company ensured that a strategic fleet was available in the event of any future emergency. However, shipping is a cyclical industry and for more than three decades the company successfully steered a steady course through peaks and troughs. It experienced a downturn in trading in the late 1970s and early 1980s and found it could not meet the resultant financial commitments. The "big bang" followed with liquidation in 1984.
The liquidation of Irish Shipping Limited was a severe body blow to our merchant shipping fleet which was effectively halved; it was also a severe body blow to the psyche of the nation. During the time of Seán Lemass, the tide was beginning to turn, but unfortunately, when boats sank it was a huge psychological and tragic blow to the nation which, at that time, was effectively on the move. Overnight, the bulwark which had sustained our strategic fleet had disappeared; a highly regarded, wholly State owned company had disappeared.
Our merchant fleet has recovered since the demise of Irish Shipping Limited, thanks largely to incentives introduced in 1987. The fleet, contrary to experience elsewhere in the EU, has increased from 142,000 deadweight tons in 1986 to approximately 190,000 deadweight tons currently.
The decline in the fortunes of EU fleets over the past 15 years or so has coincided with the rapid growth in flags of convenience which use third world crews, often poorly trained, poorly paid and with little regard for safety. As Minister for Defence and the Marine I have observed these third world flags of convenience countries. They are a threat to themselves and to other shipping because inevitably these crews do not have a common language, cannot commute inter alia the bridge and the ship proper, are poorly trained and are generally badly prepared for the job in hand. The increased use of flags of convenience has been a recognised factor in the increase of serious maritime accidents with detrimental effects on the marine environment and, more unfortunately, loss of life at sea.
The ethos represented by flags of convenience is the antithesis of the reputation which had been earned by Irish Shipping crews and the Irish merchant fleet generally over many years; that of well trained, highly regarded seafarers and officers operating to the highest professional standards.
In spite of the advances made since 1987, the Irish fleet, like all EU fleets, is under severe pressure due to competition from flags of convenience vessels. The position is further complicated by the array of different measures which have been introduced by member states to confront this difficulty. Unfortunately, a huge bureaucracy is building up in certain member states as a direct result of the need to arrest the problem on the high seas. Actions taken to date, however, have not succeeded in arresting the decline in EU fleets, and, ironically, have led to a competitive distortion between member states which needs to be rectified.
Recognising these difficulties, the Programme for a Partnership Government, 1993-1997 undertook to have a review carried out of the fiscal and regulatory measures affecting merchant shipping with a view to enhancing employment opportunities for Irish seafarers. This review is under way in consultation with interested parties. The Department, in order to inform and advance the process, plans to have an economic evaluation of the shipping industry carried out during the coming months. It is my concern that this evaluation be done as a matter of expedition and urgency.
There can be no doubt, however, as to the general direction in which we wish to move — safe ships, manned by suitably trained crews; clean seas and the maximum opportunities for qualified Irish and EU seafarers.
If the general public was stunned and disappointed by the liquidation of Irish Shipping Limited, its employees were devastated. The company which they had nurtured and served, some from its inception, others for many years, had collapsed like a house of cards. The careers which many had established in the company over the years had been tragically terminated. They faced into an insecure future with little recompense to sustain them.
While the State fulfilled its statutory obligations in relation to payments under the Redundancy Payments Acts, the company was not in a position to pay anything more. Some of the staff were fortunate enough to be able to ease the pain caused by liquidation by securing alternative employment; others were not so fortunate. It was most unfortunate that when the liquidation suddenly occurred in 1984, there was no place for some of the staff to go.
The purpose of the Bill is two-fold. It is a measure of recognition for service rendered to the State by the staff in question and it is also a measure of relief in relation to the loss and trauma endured because of the circumstances of the liquidation.
I do not propose to speak in detail about the provisions of the Bill before the House. These will be thoroughly discussed on Committee Stage. The purpose of the Bill is to provide the necessary legal 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 which I made then to introduce the necessary legislation at the earliest possible date has been delivered on with all possible speed but not at the expense of credibility or thoroughness. At this stage I am making a further commitment that following enactment of the Bill payments will be made expeditiously. The Bill outlines that payments should be made over a period of 12 months and that applications must be submitted within that period. As soon as those applications are received they will be processed and payments made as a matter as urgency. Enough hurt has been caused already and there is no reason this sad episode in our maritime history should not be concluded.
Under the terms of 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 just over 300 people will qualify for payment at a gross cost to the State or taxpayers 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, having had at that date at least two years' continuous employment and who make application for payment in the manner specified. Only those former employees who are eligible for payment may receive payment. In this context, I would like to stress that applicants must have been in the employment of Irish Shipping Limited at the date of liquidation.
A committee representing Government Departments is to be set up to assist and advise on the assessment of the applications, once the legislation is passed by both Houses of the Oireachtas. The processing of payments to the former employees will follow as quickly as possible after the Bill becomes law and the committee is being set up purely and simply to facilitate and, I hope, expedite that process. I wish to stress this point strongly in view of concerns expressed in the Dáil last week. The purpose of the committee is to bring together the relevant expertise in the areas of redundancy, tax and finance and thus enable applications to be speedily dealt with in a fully informed and thorough way.
Some Deputies suggested widening the composition of the committee to include nominees other than departmental officials. I think it was a fair point and I have considered the matter very carefully and sympathetically. On balance, I do not think this will add anything to the process and I do not propose to widen the committee in the way suggested. I can assure you, a Chathaoirligh, and all representative and interested parties, however, that the Department will keep representatives of the former employees fully informed of developments throughout the processing of applications. Explicit arrangements to ensure this will be put in place. If anybody who is not represented on the proposed committee makes themselves known as individuals or organisations, they will be kept fully informed of what is going on in the committee. I feel that the smaller committees, the quicker business can be done in the overall interests of what we seek to achieve.
Recovery from the effects of the liquidation of Irish Shipping Limited has been a slow and at times painful process for all concerned. I believe that the terms of the Bill, which are acceptable to the former employees' committee, provide, at last, a fitting and appropriate ending to a trauma which none of us would wish to see repeated. I strongly commend the Bill to the House.