Dáil Éireann díospóireacht -
Tuesday, 15 Apr 1997

Vol. 477 No. 5

Written Answers. - Sale of B & I Line.

Liam Fitzgerald

Ceist:

346 Mr. L. Fitzgerald asked the Minister for the Marine when the B & I was sold off to Irish Ferries; if he will give a breakdown of the total financial package; if he has satisfied himself that the company has done everything possible to ensure that the level of employment is maintained, notwithstanding the huge investment which has been put into the company by its new owners; his views on the way in which additional employment can be generated for Irish nationals within that company; if any safeguards were put in place with the original deal to ensure that it would not be sold off to another company, for example P & O, at the whim of its owner; and if he will make a statement on the matter. [9829/97]

Minister for the Marine (Mr. Barrett)

The sale of B & I to the Irish Continental Group plc. in early 1992 was the subject of a share purchase agreement, the contents of which cannot be disclosed for reasons of commercial confidentiality.

During Committee Stage of the B & I Line Bill, 1991 the then Minister for Tourism, Transport and Communications informed the House that his Department had signed an agreement with the Irish Congress of Trade Unions and the B & I Unions on matters relating to the sale of B & I to Irish Continental Group. He placed that agreement on the record of the House on 17 December 1991 as reported in Volume 414 No. 8, columns 1681-1683.

In 1994, functional responsibility for matters arising generally in relation to international ferries was formally transferred from the Minister for Transport, Energy and Communications to the Minister for the Marine. Since then, successive Ministers have, in the context of what I consider to be the Department's brief to develop supportive and sustainable frameworks for the Irish shipping sector, endeavoured to determine how various expressed concerns arising from the privatisation of B & I might best be met. I am satisfied in this regard that everything realistically possible and feasible has been and will continue to be done.

In the context of the frameworks mentioned above, over the past number of years I have been reviewing ways in which the operating climate for the shipping sector can be enhanced to support the objectives of increased employment, improved services, standards modernisation and the ability to compete of the Irish-registered fleet including Irish Ferries vessels. The strategic objective, in line with overall EU objectives, has been to ensure that Irish shipping companies meet international competition under comparable cost conditions and to stem flagging out from the Irish register of flags of convenience where costs are considerably less.

The intention has been to ensure the maintenance and creation of employment in the sector and to facilitate productive investment to modernise and expand the fleet.

In sum, the Department is now (i) seeking to make the recruitment or maintenance in employment of Irish seafarers more attractive to Irish shipping operators, thereby maintaining-increasing the number of Irish seafarers on Irish flagged vessels; (ii) trying to make the Irish flag more competitive, thereby promoting employment in Ireland via maintaining vessels under the Irish flag and attracting non-Irish shipowners to locate in Ireland; (iii) attempting to "level the playing pitch"vis-á-vis other low labour cost EU and non-EU competitors, thereby enhancing the competitiveness of Irish operators who employ Irish crews; (iv) trying over the long run to increase the pool of maritime expertise in Ireland, thereby stimulating an increase in marine-based activities and in general, in the development and exploitation of our extensive offshore and coastal marine resource and (v) attempting to increase the quality and attractiveness of seafaring to young Irish men and women.

To this end, certain important measures have been put in place in the context of this ongoing policy orientation and other measures are being considered. Among these measures are (i) amendments in the Finance Act, 1996 aimed at stimulating activity through facilitating tax-based leasing by Irish operators; (ii) a shipboard subsidy scheme for marine cadets studying at Cork regional technical college; (iii) the refund of employer PRSI in respect of seafarers engaged on certain Irish-owned or operated merchant shipping vessels which qualify for a reduced rate of corporation profits tax under the Finance Acts; and (iv) possible special concessionary income tax scheme for Irish seafarers working on Irish-owned or operated merchant shipping vessels.

The above policy and the measures taken under it are intendedinter alia, to maintain a strong, vibrant and efficient Irish ferries sector, employing Irish personnel to the greatest extent possible.