asked the Minister for Transport and Power if any orders have been placed by Irish Shipping Limited for the building of ships abroad; and if he will make a statement on the matter.
269.
Written Answers. - Shipbuilding Orders.
268.
andMr. Cronin asked the Minister for Transport and Power if, further to his recent statement to the Press and in view of the placing of a contract by Irish Shipping Limited in Japan, he will make further assurances that there will be no redundancies in Verolme Cork Dockyard Limited.
The reply to Questions Nos. 268 and 269 which it is proposed to take together is as follows.
Irish Shipping are required, under established Government policy, to maintain a strategic reserve fleet of about 150,000 tons deadweight for the purpose of meeting essential shipping needs in a national emergency. The company are authorised to acquire and operate tonnage in excess of this figure, but only so far as this can be done on the basis of profitable operation. Apart from the strategic requirements, the company is anxious to extend, if possible, the opportunities for skilled employment for Irish men and women aboard its vessels. At present 500 people are employed in the company's ships.
It is part of the company's method of achieving profitable operation to continually replace older and less economic vessels with new vessels and, as I told the Deputy in reply to a question on 30th July last, the company had submitted proposals for the replacement of some of their older ships.
In formulating their proposals the company found that vessels of a specification drawn up by them could be constructed in Japan at a particularly favourable fixed price.
If the company had not been able to negotiate the very keen price and acceptable financing arrangements available in Japan they could not have contemplated placing an order for new ships at the present time.
Cost of the ships is approximately 40 per cent below European or world prices. The prices are fixed and are not subject to the kind of escalation clause on which shipbuilders throughout the world insist nowadays to offset the effects of future inflation. By the terms negotiated, Irish Shipping will be enabled to finance the purchase of the ships from its own resources. Extended credit over a period of seven years will be made available to the company for the purchase.
After examining the proposal and following consultation with the Minister for Finance, I conveyed my approval to the placing of an order with the Japanese shipyard and the order has been placed.
In arriving at what was a particularly difficult decision, particularly in the context of maintaining employment at Verolme, I took into account the fact that if Irish Shipping place orders for ships at rates which are uneconomic in comparison with those at which their competitors can order, then they will have difficulty in chartcring the vessels on viable terms. The result must be loss of business, with consequent reduction in employment on the company's vessels.
With regard to the possibility of redundancies at Verolme Cork Dockyard, I am, of course, deeply concerned to ensure that all practicable steps are taken to avert such an eventuality. In this connection negotiations are, I believe, in progress about the ordering of a fishery protection vessel for the Naval Service. They are hopeful of getting a fair share of the work arising from the Marathon platforms in the Kinsale Gas Field.
So far as concerns my own Department, the B & I Company have made tentative plans for the acquisition of another car ferry but no firm proposals have yet been made to my Department. The placing of an order for such a vessel would be subject to my approval and would have to be considered in the light of the financial situation of the company.
I would certainly hope that the vessel could be built at the Cork Dockyard.
270.
andMr. Cronin asked the Minister for Transport and Power if it is intended to replace the Innisfallen with a larger vessel; and if B & I Shipping Limited have any plans for the building of such a vessel.
271.
andMr. Cronin asked the Minister for Transport and Power if B & I Shipping Limited have any plans to replace the Innisfallen with a larger vessel; where such a vessel will be built; and if he will make a statement on the matter.
The following is the information requested in respect of Questions Nos. 270 and 271.
The B & I Company have made tentative plans for the acquisition of another car ferry but no firm proposals have yet been made to my Department. The placing of an order for such a vessel would be subject to my approval and would have to be considered in the light of the financial situation of the company.
I would certainly hope that the vessel could be built at the Cork Dockyard.