I very much regret that the Government did not see fit to make a statement to the House, as was previously the case with B & I and Irish Shipping, when dealing with such an important matter, and that we are dealing with this issue by way of Adjournment Debate. The Government should not have sold all the shares of the B & I Line plc. at this time. Even the most enthusiastic Thatcherites in Britain always understood that some State companies in the commercial area performed strategic roles in the national interest. In such cases a golden share was retained. This may only be a nominal holding of one share with no day to day involvement. However it would mean that the Government could exercise control or a veto if circumstances of a resale arose.
If difficulties arise in future there is now no guarantee that we can avoid foreign control of all shipping services in and out of this island. This is both shortsighted and dangerous.
Fine Gael believe that a pre-condition of any sale should have been the retention of a golden share in the B & I line. The B & I line operate on vital strategic shipping routes on the Irish Sea. With 80 per cent of all our exports leaving by sea, it is vital that the routes are maintained and that there is effective competition for passenger and cargo shipping services. The Government would never have acquired the B & I line in 1965 but for these facts.
It is logical that Irish Ferries would want to obtain a short sea route to complement their sailings between Ireland and the Continent. There are obvious savings especially in regard to shore-based activities, such as marketing and management, which can be pooled between the two companies. In principle, therefore, we are not opposed to Irish Ferries merging with the B & I Lines. The fact that Irish Ferries are registered in the Republic of Ireland and are controlled by Irish business interests is essential. Irish Ferries are an efficient and viable business. Their commercial approach will benefit the B & I Line.
However, this proposed sale raises a number of serious questions to which the Government have not responded. The Government must clarify whether all current routes will be maintained, whether job rationalisation will be on a viable basis. Will there be an employee shareholding option for the personnel in the company? What commitments of investment have been incorporated into the deal? The Minister, Deputy Brennan, has failed to give any answers to date to those critical questions. His failure to do so thus far indicates a total lack of understanding of the position of the 900 staff of the B & I Line, the shipping agents, tour operators and exporters who must have answers to these crucial questions.
My only reservation about the Irish Continental Group is their size and capacity. Their total revenue last year was £40 million with profits of £2.39 million. They have investments to make in their own fleet replacement operating on continental routes. To this must now be added the requirement of over £50 million in new car ferries for the B & I line. Unless cast iron commitments are given to carry out fleet replacement this deal will fail.
Secondly, the only other short sea route operated by the Irish Continental group was their Belfast-Liverpool car ferry. That operation lost money for several years despite restructuring and was eventually closed last October. This country cannot afford a repeat performance on the central or southern corridor. Some commentators have suggested that the Government may have got the worst of all deals in this. Having invested over the years £110 million for reason of trade and tourism, they got a cheque in return for only £6.5 million. They have no guarantees for the future.
Fine Gael will be tabling amendments when this legislation comes before the Dáil to ensure these shipping links are maintained in Irish control. The only comments the Minister has made in defence of his determination simply to get rid of the B & I Line have been selective ones from the Stokes Kennedy Crowley report. I call on the Minister to publish this report in full so that the public will know the number of interested purchases and the real options open to the Government.
Fine Gael believe any job reductions should be on a voluntary and negotiated basis. Moreover, employees who are asked to undertake new work practices must be entitled to a shareholding in the company so they can benefit from this reorganisation through a share in the profits. The Minister has failed to come clean on any of these issues and I hope the Minister of State will now make a comprehensive statement to allay the fears of shipping agents, tour operators, exporters, those who deal with visitors to the country and, most of all, the 900 employees who have been dealt with in such a cavalier fashion to date.
