Vol. 538 No. 1
199 Mr. Dukes asked the Minister for Arts, Heritage Gaeltacht and the Islands the reason in 1997 a ferry contract was granted to a company (details supplied) for a period of seven years rather than the normal five years; the amount of the annual subvention linked to the contracts; if the company in question provides her Department with annual accounts for the ferry service; and if she will make a statement on the matter. [17449/01]
In 1992, a contract was agreed between the then Minister for Tourism, Transport and Communications and O'Brien Shipping Limited to provide a passenger and cargo ferry service between Galway and the Aran Islands for the five year period from 1 September 1992 to 31 August 1997. The initial annual cost to the Exchequer of this contract was £475,000. However, this was later increased to £550,000 with effect from 19 April 1994 to take account of inflation, extra operational costs and the cost of essential equipment required for the service.
Included in the aforementioned contract, which was inherited by my Department in 1997, was a clause allowing for its possible extension for a further five year period after 31 August 1997 provided that agreement on this could be reached between the parties to the contract. In this context, officials of my Department, in 1997, entered into negotiations with O'Brien Shipping Limited with a view to extending the contract for a further five years. During the course of these negotiations, however, it became clear to my officials that the cost to the Exchequer of an extended contract could be reduced if the extension was to cover a period greater than five years. As a result of this, a seven year extension of the contract was agreed at the considerably reduced annual cost of £475,000.
The current contract with O'Brien Shipping Limited contains a clause that the company shall submit to the Minister annually a copy of its audited accounts. I have received audited annual accounts for the years 1997, 1998 and 1999 and am awaiting those in respect of 2000.
