Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Tuesday, 13 Nov 1990

Vol. 402 No. 5

Ceisteanna—Questions. Oral Answers. - Irish Shipping Employees.

Eamon Gilmore

Ceist:

14 Mr. Gilmore asked the Minister for the Marine if he will outline any extra costs to the Exchequer arising from the liquidation of Irish Shipping since 16 May 1990; the number of occasions, within the past 12 months, on which he has met with representatives of the former employees of Irish Shipping; if, in view of the serious questions that remain unanswered regarding the circumstances leading to the liquidation of Irish Shipping, he will use the powers available to him to establish a sworn public inquiry into the whole affair; and if he will make a statement on the matter.

Mervyn Taylor

Ceist:

25 Mr. Taylor asked the Minister for the Marine if it is the intention of the Government to produce a report covering the reconstitution of the deep sea fleet and the question of compensation for former employees of Irish Shipping; when this report will be produced; and if he will make a statement on the matter.

I propose to take Questions Nos. 14 and 25 together.

I would refer the Deputy to the action the Government have taken to encourage the expansion of the Irish registered fleet. On entering Government, a grants scheme was introduced in November 1987, providing financial support of up to 25 per cent towards the cost of ship purchase. In that year's Finance Act, the tax levied on shipping companies was reduced from 50 per cent to 10 per cent and shipping companies were granted access to funding under the business expansion scheme.

These measures have made a significant impact as may be deduced from the fact that since mid-1987, the capacity of the Irish registered fleet has expanded by more than 45,000 tons to approximately 183,500 tons, a percentage increase in excess of 30 per cent.

The Deputy may also be aware of the major study of our access transport requirements which was carried out earlier this year. That study sought to establish future priorities and identify the most effective means of combating the problem of peripherality in the context of the Single Market. A high level inter-departmental group is currently examining the study and will shortly be reporting to the Government in the matter. I am hopeful that when the facts of the situation have been established, a strong case can be made for Community support for improving our access transport services.

I am constrained in what I can say in response to the second part of the Deputy's question by the fact that legal proceedings have been initiated which render the matter sub judice. In the circumstances, I would refer the Deputy to the parliamentary questions answered on 24 November 1987 and 3 May 1988 by the then Minister of State for the Marine, Deputy Pat the Cope Gallagher. On both occasions the Minister of State gave details to the House of the legal and financial sensitivities which pertain to the question of compensation for the former employees of Irish Shipping Limited.

In response to the first part of Deputy Gilmore's question, I can inform the Deputy that no extra costs arising from the liquidation of the company have been incurred by my Department since 16 May 1990. As to the second part of his question, I would point out that as legal proceedings have been pending since the middle of 1989, I have not met with representatives of the former employees over the past 12 months nor have I received a request for such a meeting. In reply to the remainder of the Deputy's question, I do not propose to set up a sworn public inquiry into the matter. Since the matter is already the subject of pending legal proceedings, it would be inappropriate to pursue the course of action suggested by the Deputy.

First, I would like to convey to the Minister my congratulations on his appointment as Tánaiste. In relation to the reply he has given to the two questions he has taken together, can he state how many individual summonses have been served on the Government arising from the liquidation of Irish Shipping? Can he confirm that the claims are intended to establish that the then Government were negligent in their handling of the Irish Shipping case and if a Hong Kong based company have initiated any legal proceedings against the Government?

To take the supplementary questions seriatim, first I would express my gratitude to the Deputy for his good wishes. Táim buíoch duit. I have no information as to the number of summonses but I can check that and let the Deputy know. I understand there is something in the citation about the negligence of the then Government. The Hong Kong company to which the Deputy referred have been making noises but what specifically has been done in a legal sense, I do not know as of now.

Would the Minister confirm that as tomorrow is the sixth anniversary of the liquidation of Irish Shipping, the statute of limitations will come into effect tomorrow and that therefore, it will not be possible thereafter for further legal proceedings to be initiated against the Government?

I understand that the proceedings that have already been initiated did not fall within the statute of limitations period. Consequently, I do not see that that is highly relevant in this case.

In relation to the aspect of my question which asked the Minister about the establishment of a sworn public inquiry, in view of the fact that there is now a large number of summonses issued against the Government and that these summonses, as he has confirmed relate to the performance of the then Government in their handling of Irish Shipping, will those legal proceedings in effect bring about a public sworn inquiry in a somewhat roundabout way? As there are a number of outstanding questions, quite apart from the position of the former employees, relating to the inexplicable chartering decisions, the decision to build the Irish Spruce and the criticisms made by the Oireachtas Joint Committee on State-Sponsored Bodies and in the liquidator's interim report, does the Minister consider there are major questions of public interest relating to the liquidation of a company which has, so far, cost the taxpayer almost £100 million? Will the Minister agree that he should establish an inquiry——

The Deputy has made his point, let us not forget the sub judice aspects of this matter.

It would not be prudent to establish a public sworn inquiry and cut across the judicial proceedings having regard to the fact that the Legislature and the Judiciary are separate and seen to be so.

May I ask a final supplementary question?

You may ask a brief question. We cannot debate this matter now.

When does the Minister expect the liquidation process to be concluded and the liquidator to make a final report?

I have asked that question on a number of occasions and I have not received a final date.

Barr
Roinn