Tomás MacGiolla
Ceist:20 Tomás Mac Giolla asked the Minister for the Marine the total cost to the Exchequer of the liquidation of Irish Shipping to date; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Irish Shipping Liquidation Cost.
I would refer the Deputy to the reply which the former Minister of State at the Department of the Marine, Mr. P. Gallagher gave to his question of 3 May 1988. On that occasion the cost to the Exchequer of the liquidation of Irish Shipping Limited was given as £50 million. The cost has not changed.
Provision was made for the recoupment to the Central Fund of £90.084 million from the Department of the Marine Vote during 1989 in respect of past expenditure from the fund under the Irish Shipping Limited Acts, 1947 to 1984, in connection with State guarantees given in respect of borrowings by Irish Shipping Limited. The difference between this sum and the £50 million quoted as the cost of the liquidation arises from the repayment in full of lease payments on the MV Irish Spruce.
Under the terms of the 15 year lease agreement, these payments fell due in the event of Irish Shipping Limited ceasing to trade. Since 75 per cent of the lease costs would have been borne by the State in any event, only the 25 per cent which Irish Shipping Limited was to have repaid from its own resources is properly attributable to the cost of liquidation.
First, have any additional costs been incurred since 3 May 1988 which would add to the £50 million figure which was given then? Second, how much of the cost related to compensating former employees of Irish Shipping Limited? Third, when does the Minister intend ultimately to resolve the disgraceful neglect of the former employees of Irish Shipping Limited who, six years after the liquidation of the company have still not been paid their due redundancy payments and have not been fixed up with proper pension entitlements? When will that disgrace be finally resolved?
The Deputy is raising a special aspect of the matter, which is worthy of a separate question.
I do not have the breakdown the Deputy is asking for However, I have in a note here a statement that is subsequent to the £50.6 million and it was anticipated there would be further cost associated with meeting guaranteed borrowings of £0.3 million. With regard to the liquidation of the company, I want to reiterate what I have said already; this party accept no responsibility whatsoever for the liquidation of Irish Shipping Limited. With regard to payments to the employees, they were paid the statutory redundancy amounts but they have applied for extra moneys and I know that as of now there are court proceedings in train which inhibit me from talking further about this matter. I am not without appreciation of the service that those people gave to this State over a long number of years.
Let me remind the Minister the he in fact is on record as having supported the former employees of Irish Shipping Limited in relation to their requests——
I do not deny it.
It is time the Minister did something about it. He has been in office for some time.
The glib comment is easy.
A supplementary question please, Deputy.
I wish to elaborate further on the cost, which was the original question asked. Does the Minister anticipate providing any additional moneys to meet the request of the former employees of Irish Shipping Limited in relation to their severance payments and pensions so that six years after the liquidation they will not have to picket in front of Leinster House in order to highlight their situation?
I wish to tell the Deputy and the House that he is not the only one concerned for the former employees of Irish Shipping Limited. He is arrogating to himself the sum total of sympathy for them. I have already mentioned that there were legal problems with regard to both the liquidation and the action being taken by certain former members of the staff of Irish Shipping Limited and that inhibits me making any further comment.
I now call Question No. 21.
Mrs. Taylor-Quinn rose.
I was hoping to deal with Question No. 21, Deputy Sherlock's question and he is awaiting a reply. A quick question please from Deputy Taylor-Quinn.
Does the Minister feel honour bound to fulfil the promise made by the Taoiseach, Mr. Haughey and by the Minister for Labour, Mr. Bertie Ahern and indeed by himself back in September 1985 when they promised the former employees of Irish Shipping Limited that if Fianna Fáil were returned to office they would compensate the workers? Does the Minister consider he is in a position to again sponsor the Bill on Irish Shipping which he sponsored in 1985 as a Private Members' Bill?
I think the concern expressed may be an indication of a guilty conscience. I have met with the employees of Irish Shipping Limited and, as I have told Deputies, I am inhibited by two things; the fact that the liquidation proceedings are not over and that there is a court case in train. I am not surrendering a monopoly of concern about the former workers of Irish Shipping Limited to either Deputy Taylor-Quinn or to Deputy Gilmore.
Sympathy is not enough.