I wish to share my time with Deputy Broughan.
Adjournment Matters. - Irish Ferries Dispute.
Is that agreed? Agreed.
I thank the Minister of State, Deputy Gilmore, for coming into the House to respond. Listening to the Minister for the Marine on RTÉ radio this morning it was clear that he has adopted a heartless and callous approach to the plight of the 200 permanent and temporary employees of Irish Ferries who will be laid off from November to June next year unless he takes immediate action. The reality is Irish Ferries management broke all the normal industrial relations rules and procedures in announcing its draconian proposals at a meeting with the workers' representatives on 25 September.
These proposals involve tying up the St. Killian on 3 November leaving 200 workers without pay until June next year. This will have devastating consequences for these individuals and their families. I have met the representatives of the workforce and I am aware they are deeply concerned about their future.
There is no doubt that Irish Ferries management has a hidden agenda. The company hopes many crew members will be obliged to take up other jobs during the layoff period giving it an opportunity to hire what are known as yellow pack or low cost crew members. As the Minister is aware, the practice of employing a non-EU, low cost labour force is widespread in the shipping sector. Such a policy approach must be strongly resisted by the Government.
The Minister must put his full weight behind the workers in their efforts to save their jobs. The French Government provided subsidies to Brittany Ferries. Why can we not come to the assistance of Irish workers at this critical time? The Minister has the option of pursuing the provision of a subsidy or using in an imaginative way the taxation system to resolve the crisis. I am aware that both he and the Department have been examining how the taxation and PRSI regime applicable to seafarers in Irish Ferries might be amended to make the company more cost effective and competitive.
The time has come to make a decision on the matter. I was astonished at the Minister of State's statement in the Dáil on 26 September when he described the decision of Irish Ferries as a commercial one taken by a privately owned firm. The implications of this decision are serious not just for the workers and the company but also for the island of Ireland. If implemented, it will mean that there will be no direct sea link between this island and mainland Europe for Irish livestock exports during the next seven months.
The position of the workers' representatives is more than reasonable when one considers that during the past 23 years not one day was lost through industrial action. There has been no significant investment over the same period. The St. Patrick and the St. Killian are 23 years old and seriously outdated.
I do not accept the Minister's argument that Irish Ferries and its workforce do not have a special case. This dispute is of national significance. I urge the Minister to ensure this important service is not severed for seven months and to intervene either by amending the taxation and PRSI regime applicable to seafarers or by providing a direct subsidy.
The behaviour of Irish Continental Group in this matter has been outrageous. Workers employed by the company for over 20 years will as a result find themselves out of a job. New conditions governing holidays, pensions and sickness benefits will be introduced from next May when workers will be employed on a two weeks on-two weeks off basis. This should not be countenanced by the House.
Within days of announcing this despicable reorganisation the company launched a £60 million vessel. We must take whatever action is open to us.
Deputy Kitt outlined the measures in relation to subsidisation, the fact that the only major route to France for livestock exports is being obliterated, a critical point in the light of today's debate, and the replacement of these workers with non-EU nationals. Approximately 100 of the workers come from north Dublin constituencies which have a long seafaring tradition. Many families in Raheny and Kilbarrack will be devastated by the action this company is taking.
I thank the Minister of State for coming into the House and I am grateful to him and the Minister for listening to our representations and those of the unions. This is an urgent matter and I ask him to use whatever powers are available to him.
I thank Deputy Kitt and Deputy Broughan for raising this matter. I am very concerned about the continuing lack of progress in relation to this matter. The House will be aware that on 20 September Irish Ferries announced it intended to cease sailings on its continental corridor between Ireland and France for the winter, starting on 3 November. Deputies will be aware also that I asked the Labour Relations Commission on 10 October to intervene in the matter with a view to finding a solution which would keep the service in operation over the winter period. Intensive negotiations under the aegis of the Commission are ongoing and it is my strong desire that both parties to the dispute are allowed to address the serious issues involved in a workmanlike and constructive environment.
Subsequent to the initiation of talks in the Labour Relations Commission the company formally sought from my colleague, the Minister for the Marine, the grant of an operating subsidy of £12 million in total which, the company represented, was essential if the continental route was to stay open over the next three years. The Minister responded to this by letter to the company yesterday in which he indicated he could not grant the operating subsidy sought by the company. He also appealed to the company, which is financially strong and robust, to maintain operations during the coming winter.
I share the view of my colleague, the Minister for the Marine, that an operating subsidy is not the answer to the current financial circumstances of the route. Such a subsidy would open up the likelihood of requests for subsidies from operators in other areas of marine transport and aviation. It would represent a major reversal of the long standing policy of creating efficient and competitive private sector companies in all cases where the normal justification for public intervention did not exist.
There has been a long history of subsidisation and State ownership in the shipping sector. It has been broadly accepted in recent years that this was not conducive to the creation of cost-effective, flexible and predictable services. It is not the Government's policy to revert to this position on foot of one operator's threat to close down one route.
The decision of the company to close the route was a commercial one taken by a privately owned firm. That is not an opinion expressed by me, it is a fact. As I mentioned in my reply to the Adjournment Debate on 8 October a decision to take disruptive action would, likewise, be one for the employees concerned. I am sure the House will share my view that it would be a matter of considerable regret, however, if such action were to further undermine the company's competitiveness and threaten more job losses.
I reject the assertions made by Deputy Kitt in relation to the Minister's interview on radio this morning. My Department has a good record in terms of supporting the shipping sector over the past 12 months. We have achieved much in terms of tax measures and the financing of training but we intend to do a great deal more. I appeal to all concerned to resolve this dispute without disruption of services to the travelling public and our exporters and importers. As an open economy and an island nation we simply cannot afford a serious interruption in the flow of goods and visitors to and from the country. I appeal, therefore, for calmness and reflection on all sides.
The Dáil adjourned at 5.15 p.m. until 1 p.m. on Wednesday, 30 October 1996.