Vol. 260 No. 3
asked the Minister for Transport and Power if his attention has been drawn to the statement made by the Chairman of the Verolme Cork Dockyard at a recent launching that a new car ferry for the continental trade has been ordered abroad; if he is aware of the impression given that the cost of building the vessel in Cork would be prohibitive while in fact the Cork dockyard had never been asked to tender for this particular vessel; and if he will make a statement on the matter.
4.
asked the Minister for Transport and Power if he will comment on the recent statement of the Chairman of Verolme Cork Dockyard Limited that Verolme were not asked to tender for the car ferry for the continental trade.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 3 and 4 together. I am aware of the statement referred to by the Deputies.
Following the decision in July, 1971 of Normandy Ferries to withdraw their ship from the route, I explored with the two State shipping companies and Bord Fáilte as a matter of urgency the possibility of a resumption of the service on this route as early as possible. The withdrawal of the Normandy Ferry vessels without prior consultation had been a severe blow to our tourist trade and Bord Fáilte and the Regional Tourism Organisations were pressing for the restoration of the service in 1972.
The possibility of including the route in the ferry services operated by the B & I was considered but all concerned were agreed that the B & I Ferries, designed for cross-Channel operation, were not adequate to meet the needs of a continental service.
Irish Shipping Ltd. examined the possibility of building a new car ferry, for which Verolme would doubtless have got the order, but the type of ship which the company considered essential for the route was estimated to cost from £5 million to £6 million and the operation of such a service by Irish Shipping alone would have involved unacceptably high losses. Moreover, the vessel would not have been available before 1974 and apart from the loss to the tourist interest in Ireland in the intervening period, the market developed in connection with the operation of the Normandy Ferries service would be further seriously damaged. After consideration of all the alternatives, it was finally concluded that the only practical hope of resuming a car ferry service from Rosslare to the Continent on a reasonably economic basis was for Irish Shipping Ltd. to seek a new arrangement with suitable partners on the lines of the previous agreement with Normandy Ferries, with the safeguard that the Irish company should secure a substantial financial stake in the enterprise in order to ensure that service could not again be withdrawn unilaterally.
I should say that the specifications of the ship which Verolme offered to build were not considered adequate for this service. It would have cabin accommodation with berths for 260 passengers mainly below car deck and couchettes for an additional 120. Cabin accommodation below car deck level is an unsatisfactory arrangement for the proposed service. The accommodation for 350 passengers on the Normandy Ferries vessel was found to be insufficient. Irish Shipping Ltd. consider that it is necessary for a service of this kind to offer cabin accommodation of a high standard for upwards of 500 passengers.
In the course of their inquiries, Irish Shipping Ltd. got into contact with Lion Ferry, Sweden, and the Norwegian shipping company, Fearnley and Egers, who were prepared to consider entering into arrangements with them for the provision of a car ferry service between Rosslare and the Continent using a vessel for delivery from a German yard in early 1973 on which the Swedish company held an option. This vessel would provide cabin accommodation of a high standard, including shower and toilet in most cabins, for 540 passengers and would be very suitable for operation of the proposed service. The contract price for the ship completed to agreed specifications was £4.25 million. This low price was due to the fact that this was a sister ship to one already in operation with Lion Ferry for which working drawings and berth were available. I am assured that the present cost of such a ship would otherwise be well in excess of £5 million.
The interest of the two foreign companies in participating in a service from Rosslare is, of course, related directly to the use of this ship and there is no question of their being involved in such a service using any other ship. These companies wished to retain majority control in the joint enterprise but Irish Shipping have succeeded in securing participation on a 50/50 basis so as to obviate the possibility that this ship could be unilaterally withdrawn from the service as happened with Normandy Ferries.
Irish Shipping consider that the proposed investment on the basis of the price of this ship can be economically justified but it is not, of course, without substantial risk and would not be contemplated but for the urgent necessity of sustaining and expanding tourism from the Continent especially in present circumstances. In this context, the availability of the ship for the 1973 season is of major importance. These arrangements, in fact, offer the only prospect of getting the continental car ferry service back into operation as early as 1973 and without serious losses.
It will be appreciated that what is at issue is not simply a matter of placing an order abroad rather than with Verolme dockyard. Indeed, the only acceptable alternative to the arrangement now made would not have been to order a new vessel from Verolme but to abandon the car ferry service between Ireland and the Continent for the present at any rate.
Irish Shipping Limited and the B & I are at my request urgently examining the possibilities of placing orders with Verolme for the building of new cargo vessels.
May I ask the Minister if it is correct to say Verolme were not asked to tender?
Yes. This is a particular service arrangement reached for the purpose of resuming the car ferry service between Rosslare and Le Havre as quickly as possible. The other matter is being urgently examined and discussions are taking place between Verolme and the B & I with a view to placing contracts with both of these State-sponsored organisations and that should ensure the continuation of work at the dockyard.
Is there any reason why the only shipbuilding firm in the State was not asked if it was interested in this order?
I want to draw a distinction here between actual shipbuilding and getting a car ferry service going between Ireland and the Continent. I sought to get my priorities right in this respect in view of the representations made by Deputy Corish and other Deputies and to ensure that the Rosslare-Le Havre service would be resumed as quickly as possible and the most effective way to do that was this 50/50 service arrangement by contract for a ship that was ready to start construction with a view to getting the service going in 1973. The shipbuilding aspect is a separate matter and Irish Shipping has a substantial bulk cargo vessel which they must build and construction of this is being negotiated between Irish Shipping and Verolme and the B & I have another vessel which they require and that also is being discussed and negotiated with Verolme.
Is there any national policy whereby the two State-sponsored shipping companies might be given advance notification of projected orders with a view to both shipyards, Cork and Belfast, being considered for competitive tenders?
That is a separate question.
Would the Minister consider bringing Belfast into the picture?
Every shipyard is brought into the picture. In view of the questions put down by Deputy Desmond and Deputy Barry, I am very concerned about the Verolme shipyard.
May I point out to the Minister that Verolme were never even asked to tender in connection with this £2.4 million contract. They had to take a shot in the dark in the hope of getting a tender and this £2.4 million could have been spent in Cork. With regard to general policy——
We cannot have a speech on this.
I was very concerned about the representations from Deputy Corish, Deputy Browne, Deputy Allen and Deputy Desmond concerning the need to restore the link that had been broken in the south-east vis-á-vis Rosslare and Le Havre.
