Seán Barrett
Ceist:2 Mr. Barrett asked the Minister for the Marine the proposals, if any, he has to ensure the future of Waterford port. [14003/97]
Ceisteanna—Questions. Priority Questions. - Waterford Port.
Since my appointment as Minister for the Marine, I have kept in close touch with developments in the examinership of Bell Lines. I hoped the examiner would succeed in securing new investors for the company. I assisted Waterford Harbour Commissioners in their attempts to ensure the success of the examinership. I gave my consent to the proposals contained in an interim agreement negotiated by the commissioners with the most recent proposed investor group. I was extremely disappointed that, as a result of other factors beyond my or the port's control, the examinership did not succeed. My deepest sympathies are for the employees of the Bell group and all who might be adversely affected.
Bell Lines Shipping Company and four related companies were wound up by order of the High Court on Friday, 4 July 1997 and a liquidator was appointed. It is a matter for the liquidator to realise the assets of the companies and, in the case of the Bell group, it is likely the assets will be sold, as going concerns. The Bell Lines liquidator was appointed by the High Court and, in performing his function and using his powers, he is at all times subject to the supervision of the court. While it is early days yet, I am confident the liquidator will be successful in securing the future of the core businesses of the Bell group, thus saving the maximum number of jobs possible.
Immediately following the appointment of the liquidator, I assured Waterford Harbour Commissioners of the Government's full support in maintaining and developing their businesses into the future. With a view to guaranteeing and securing the future of Waterford Port, I have put the following action plan in place. I will make top level, marketing and business development expertise available to Waterford Harbour Commissioners to accelerate recovery. I have ensured that repayments on European Investment Bank loans will be met without adversely affecting the financial position of Waterford Port. My Department and Waterford Harbour Commissioners will give every assistance to the liquidator to maintain the maximum number of jobs and level of business in the port area.
Waterford Port has benefited from a substantial State supported investment programme of more than £35 million in the past six years, including substantial EU Structural and Cohesion Funds aid, and this investment must be protected as a basis for future growth and development. Waterford Port has a strong state of the art infrastructure and a proud tradition in the provision of portal and shipping services. Belview Terminal is one of the most modern container ports in Ireland and can provide national and international carriers with direct and cost efficient access to the UK and continental Europe. Already, Waterford Harbour Commissioners are looking for alternative carriers to operate out of Waterford Port and have already received queries from some carriers as to availability of facilities. In the meantime, shipments are going in and out of the port.
I will work directly with the commissioners to secure the future of the port as a major strategic port. I intend to review with port management on a regular basis over the next few weeks the strategic options open to them. In this connection I will visit the port in the next few days.
Why did the negotiations between the examiner and potential investors collapse? Can the Minister reassure the staff of Bell Lines, many of whom have worked there for a number of years and are now in receipt of unemployment benefit with no possibility of redundancy money?
The port of Waterford deals with approximately 40 per cent of lo-lo container traffic, which is of vital importance to the economy. What steps are being taken to ensure the port remains available to exporters and importers? Can the Minister ensure that we do not make the mistake made in the past where one operator had total control of the operation of the Belview terminal? It is always a dangerous exercise in business to depend on one group. This group tied up Waterford port because of agreements which could have been difficult to extract themselves from.
I want an assurance from the Minister that the port will function as normal, that every effort will be made to attract new carriers and that every step will be taken to ensure that those who worked for Bell Lines in Waterford port will obtain employment from the new operators.
On the question of staff, Bell Lines is a commercial operation and is not under my control. I am concerned about the position of the staff and if I can do anything to assist them, I will. Deputy Barrett mentioned that the redundancy position is bad. There is statutory redundancy. In the package available prior to this one, there was a reasonable provision for redundancy, both from the company and the State. This is no longer available due to the collapse of the examinership and staff are relying solely on statutory redundancy, which I regret.
Deputy Barrett also asked why prospective investors pulled out. A group of investors led by the Irish Continental Group withdrew from discussions on 3 June last. They were concerned about matters relating to the Bell Group's Irish and British pension schemes, severance arrangements for senior executives living outside Ireland and the UK and the threat of legal action by Waterford Harbour Commissioners. A second potential group of investors, comprising IAWS, ACT and Imari was then located by the examiner. Imari pulled out of the rescue deal on 2 July because it believed sufficient information was not available to make a hard factual analysis of which parts of the Bell Group were profitable. There were serious concerns about the viability of the Bell Group, especially its European dimension. Tragically, the group went into liquidation on 4 July.
On the question of Bell Lines being the sole operator in Waterford port, it was more a case of one operator having a high level of priority. Technically, the group was not the only operator but in practice what Deputy Barrett said is correct. There will be different arrangements now. I accept the Deputy's point, which is important and should be borne in mind in future developments to maximise the port's facilities.
I will take every step possible to establish the best package for the port to enable it to return to operation as early as possible. The straw that broke the camel's back was storm damage to one of two new cranes which cost £7 million. The damage to the crane was unusual and unfortunately took a long time to repair. One of the cranes is back in operation, together with a small crane. The carriers have been helpful to Waterford Harbour Commissioners in allowing the port to proceed and return to business.
I assure the Deputy that I regard this crisis as a major tragedy. Waterford is a vital regional port and I will do everything I can to get it back into operation as quickly as possible.
More questions on Waterford port have been tabled.
They will be dealt with later.