asked the Minister for Tourism and Transport whether he expects the Swansea-Cork ferry to be successful in light of the delay in the announcement of Government assistance and the fact that loan rather than grant aid was forthcoming.
24.
Ceisteanna-Questions. Oral Answers. - Swansea-Cork Ferry.
9.
asked the Minister for Tourism and Transport the plans his Department have for the establishment of a permanent ferry service on the Cork-Swansea route, having regard to the necessity of such a service for the proper growth and development of the tourism industry in this region.
I propose to take Questions Nos. 9 and 24 together.
I should in the first instance make it clear that it is not a function of my Department to provide ferry services between Ireland and other countries. That is a matter which is entirely for the commercial discretion of ferry operators. Within the constraints of that policy and also of the EC competition rules the Government, on an exceptional basis and because of the value of the Cork-Swansea service to the tourism industry of the south-west region, indicated their willingness to make available to that service from the Exchequer a grant of £500,000, together with a loan of up to £500,000 to be repaid in September 1989. I do not accept that there was any delay in the announcement of Exchequer assistance.
In view of the value of the Swansea-Cork service to tourism interests in the south-west region, I, like other Members, was most disappointed at the announcement earlier this week that Swansea-Cork Ferries Limited are unable to operate a service this year because of their inability to secure a vessel. I am most anxious that all possible options for the operation of a service this year would continue to be explored.
The Government have scuttled the Cork-Swansea ferry service principally by dragging out the financial negotiations until mid-January at which late stage it was impossible to get a ship and, secondly, by offering short term loan facilities rather than grant aid. Will the Minister of State say what realistic steps are being taken by the Government to provide an alternative ferry service this year to serve the Cork-Kerry region and replace a ferry which last year carried 32,000 cars and 125,000 foot passengers?
I have responded to the questions raised by the Deputy. I should like to place on record my appreciation of the practical contribution made by Deputies Jim O'Keeffe, Bat O'Keeffe, Ned O'Keeffe, Paddy Sheehan and one or two others. They gave practical assistance when it was needed. It is tragic that the Cork-Swansea Ferry Company are now in the position in which they find themselves. The company have been negotiating for a larger ship since last autumn. Those of us who attended the press conference given by the company on Monday last heard that the funding arrangements and their timing did not have a bearing on the company being unable to provide any ship to run a service this year. That debate was carried on by the company in the knowledge that their two-year lease and contract were due to expire at the end of 1988. Earlier in the year a £5 million grant was given and the local people raised money, acknowledging the importance of this ferry link. The Government responded positively with a further loan of £500,000 to be repaid in September. All options will be explored in an effort to provide a service so necessary to the tourism industry here this year.
I want to ask one question.
I want to call Deputy Maureen Quill who also has a question tabled on this matter.
The Minister's answer is full of sound and fury, signifying nothing. He paid tribute to the Deputies in the House who assisted in the provision of the failed ferry service. Let me now be of some assistance to him in the hope that we might put in the place of the failed service some kind of alternative service for the summer. Is it the Minister's intention now to reroute the moneys that were promised by way of interest free loan to another operator who might be prepared to put a vessel on that route for the summer? There would be time to work out some kind of strategy to put on a permanent service for the years ahead. This would enable people who are interested in promoting tourism to develop and market their region abroad rather than having the kind of convulsions we have every September because we do not know whether we are going to have a ship and therefore cannot market our region properly.
I will give the fullest consideration to any proposals that are made.
The bookings are made now. Now is the time to do something.
The Deputy has lost sight of her question which was about funding. That was the significant part of the Deputy's question and I want to respond to it by saying that we will examine any proposal that comes before us in the light of the need for the service.
Is the Minister in any doubt about the need?
If tourism-assisted funding is part of the proposal we will give it every consideration.
I appreciate the Minister's remarks in regard to my own political and personal contribution towards the re-establishment of this ferry and the effort to keep it going, but I will not be diverted by kind words. Does the Minister not agree that if the financial package ultimately agreed in mid-January had been made available in October or November the ferry could have had an opportunity to negotiate for an alternative ship with far greater prospect of success? Does the Minister not accept that the loss of the ferry service involves damage to the economy of the order of £15 million to £20 million? Will the Minister now tell us what steps he is taking to secure an alternative service this year rather than giving us the waffle about being prepared to listen to any suggestions that might now come forward? I want to know how the Government will discharge their responsibility to my area this year.
The Government and I have no difficulty about our responsibilities. I indicated what our responsibilities are. There is no indication whatever that the company were restricted in any way from last July in their negotiations for the provision of a boat for 1989 and the years ahead.
They were financially restricted.
They could not buy a boat if they had not got the money.
They were not financially restricted. They do not have capital to buy a boat but that is a different thing altogether. Is it not a pity that people who are asking such questions do not check out the facts in case they would do any further damage to the service? I want to state categorically that the structure of the funding provided by the Government to this company and the timing of it did not inhibit the company in any way in their negotiations for the acquisition of a larger vessel in 1989.
That is utter rubbish. Where is the ship for this year?
They could not buy a lifebuoy.
I wish to refute the allegation made by my namesake, Deputy Jim O'Keeffe. If the management plan for 1989 had been submitted by the ferry company when the Cork and Kerry Deputies and Senators from Fianna Fáil met the Taoiseach and the Minister for Finance on the issue of the provision of £1 million in funding they might have been in a better position. Let me ask the Minister if it was his information that the company were negotiating for a much larger ship, thereby trying to increase the freight content of that ferry, and that it was the Government's information that such a ship was available until quite late in the day when, surprisingly, we were informed that they then had changed strategy and were looking for the return of the Celtic Pride on that crossing. Finally, is the Minister aware that the city manager in Cork and members of the ferry company are quite emphatic that any delay there was in providing funding had absolutely no detrimental effect on the overall negotiations for re-lease of a ferry from Cork-Swansea in 1989?
That is back bench rubbish.
Deputy Bat O'Keeffe's question was about the financial structure and arrangements of the company. It is only fair to say that the company have been working in an under-capitalised way from the beginning. When we were providing funding we asked them to submit to the Department the financial structure of the company for 1989 and that they did. I initiated a meeting around 11 January to confirm the financial structure of the company and I announced the granting of the loan around 20 January.
Late enough to make sure it was no good.
We shall have to have finality on this question. I have given quite a lot of latitude. I want to call Deputy John Bruton, Deputy Liam Kavanagh and perhaps a final supplementary from the lady Member, Deputy Máirín Quill.
I wish to raise on the Adjournment the arrangements now in place for the business of Fóir Teoranta and the winding up thereof; the new method of collection of outstanding loans owed by companies to Fóir Teoranta; whether any companies in which members of the Government have or have had an interest will be affected by these arrangements; the treatment of business in hand between applicant companies and Fóir Teoranta; if and when directors of Fóir Teoranta were informed of the Government decisions on the matter and if and when the decisions in question will be confirmed by legislation.
I will communicate with Deputy John Bruton in respect of that matter.
Is the Minister aware of statements made recently that pressure was brought to bear on him and on the company by carriers and other ferry ports to influence the outcome of the decision regarding the Cork-Swansea ferry service and, if so, can he comment on those statements?
The response to the Deputy's question is yes, I have heard and read these statements and I will just sum them up by saying that they were both incorrect and grossly mischievous.
I am glad to hear that.
A brief supplementary from Deputy Máirín Quill, I want to get on to other questions.
I wish to conclude, in response to Deputy Liam Kavanagh, that more deplorable still was the fact that that sort of statement emanated in my own county.
Would the Minister accept that if a viable service was to be provided directly into the Cork-Kerry region, that service ought to be in place in September of any given year to enable tour operators to make block bookings, to enable tourist people to carry out proper marketing and to enable that service to be well marketed and investments to be made well in advance of the upcoming season? Would he accept that any boat that is——
Please, Deputy Quill, I asked for brevity.
He has missed the boat anyway.
I would agree with the tenor of that question. Of course it is absolutely essential that a commercial activity of this nature, and particularly ferry operators, have their plan for the ensuing year in place so that brochures could be printed and published. I have no disagreement with that.
No. 10 please.
What use is the financial package in January?
Why did the Minister delay?
I have called Question No. 10.
Deliberate delay.
Yes, it was deliberate delay.
Please, Deputies, I have called the next Question.