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Seanad Éireann díospóireacht -
Wednesday, 18 Nov 1987

Vol. 117 No. 14

Adjournment Matter. - Irish Shipping Limited.

A Leas-Chathaoirligh, first I thank you for giving me the opportunity to raise this very important matter on the Adjournment.

Senators here this evening will note that in the past when matters dealing with Irish Shipping Limited were being discussed many of the people most affected, their wives and their families were present in the public gallery. There was a sense of occasion about what was happening as many of them wore their uniforms. I did not tell the people from Irish Shipping Limited that I was hoping to raise the matter this evening. These people have had far too many false promises over the past three difficult years. I do not want to raise their hopes this evening only to have them dashed once again.

My position and the position of many others in my party on the closure of Irish Shipping Limited and its consequences are well known and on the record. In my own case, it is on the record of the other House. I have spoken at parliamentary party meetings. I spoke with the then Taoiseach and the then Minister on this subject, and I spoke with the people concerned. I accepted the commercial inevitability of the decision taken. I regretted the decision. I cursed the mismanagement and the squandering which brought it about and which led to the winding up of one of our great semi-State bodies and to the waste of the tremendous talent, dedication and service of these people.

I also felt at the time — and I said so then — that a great injustice had been visited on these people. I argued then for cothrom na féinne and for basic justice for the people affected. I argued for a fair deal for these people. I was not successful and one of the great regrets of my past number of years in politics is that I and those who felt like me on this issue were not successful in getting the type of justice which we felt these people were entitled to.

What I want to do here this evening in the short time available to me is to ask the Fianna Fáil Government to do what that party promised they would do in Opposition, what they promised specifically would be done and should be done to bring about justice. This is not like many of the other promises which preceded the election which were, in a sense, global promises affecting hundreds of thousands of people. These promises were made to specific, named people, people who had got to know their public representatives at a personal level, people who had a right to expect that Fianna Fáil in office would honour this promise.

Let me quote from the debate on a Private Members' Motion in Dáil Éireann on 25 and 26 June 1985 as reported in the Official Report.

I am sorry. You may not quote directly from debates in the other House. However, you can make points from them.

I will quote points from speeches made in the other House. Let me refer to what the then Deputy Brennan, now Minister of State, said. The reference is Volume 359, column 2166. Deputy Brennan argued — and I presume it is in order to give an indirect account — that the Government should do the decent thing and respond to the appeal of Deputies Bertie Ahern and John Wilson to pay the compensation required to their own employees.

Deputy Brennan said the Minister could not introduce a Bill in the other House, as he was proposing to do, to weed out rogue directors and to weed out directors who ran away from their responsibilities while the Minister and his Government ran away from their responsibilities in that regard. Deputy Brennan made a strong, impassioned appeal to the Minister to listen to the Fianna Fáil point of view and to compensate the people involved who were employees of the State. Deputy Brennan claimed that these people had served us all proudly for many years. He ended his speech by appealing to the Minister to live up to his responsibilities and pay these Irish public servants the funds due to them.

I know now that the Minister, Deputy Brennan, is busy but we have not heard him make his point of view known since the change of Government. At the same time another prominent member of the Opposition, who is now a prominent and effective Minister in Government — Deputy Albert Reynolds — made a number of important points. He assured the House — at column 2182 — that, if the Government wanted to solve this problem they should bring in the necessary legislation. He guaranteed the full backing of the Fianna Fáil Party. He said that, if the Government wished to reconstitute an Irish shipping company, they should "forget about another committee which will go on talking until the Government are talked out of power". He stated, and this quotation must come directly from the debate:

... leave the matter for the Fianna Fáil Government who are already committed to reconstituting a shipping company.

In winding up that debate, in which 65 Fianna Fáil Deputies voted, Deputy Reynolds, as the official spokesman for the party, argued that "Fine Gael should try to stop betting each way". He said that if the Government had any humanity they would see that the principles of justice were applied. He told the Minister he would make a name for himself by standing on his own feet and he hoped that the principles in this case of firmness, equity and justice for the ordinary people would apply.

I can say no more than that. All I ask is that the Minister of State here tonight will ensure that the principles of firmness, equity and justice — promised by Deputy Reynolds on the evening of 26 June 1985 in the interests of the employees of Irish Shipping Limited — will be applied in a practical manner to ensure justice for these people. In an aside, and it may be prophetic, in that same debate Deputy Reynolds accused the Government of wanting to start a fashion of getting rid of semi-State bodies. This is something which the employees of the National Social Service Board, An Foras Forbartha, the Health Education Bureau and many others may find a rather hollow ring to at present.

The principal speaker for the Fianna Fáil Party in that debate of 26 June 1985 was Deputy John Wilson who was then the shadow spokesman on this portfolio. He spoke eloquently, as he is able to do, and he argued on the motion in the name of the Fianna Fáil Party that Dáil Éireann, in view of the loyal service given by employees of Irish Shipping to the people of Ireland, calls on the Government to pay adequate compensation to the staff of Irish Shipping of six weeks salary per year of service and restore the pensions of all former Irish Shipping staff to their pre-liquidation level.

That was the Fianna Fáil position in June 1985. Deputy Wilson made it very clear that his purpose in putting down this motion was to try to change the Government's attitude to the treatment of the employees of Irish Shipping. He made it very clear that the Fianna Fáil side of the House recognised the importance of Irish Shipping. I will quote from the Official Report, at column 1864:

... our commitment to the Irish Shipping workers — judging by the deaf ears upon which our words have fallen now, the Fianna Fáil Party seem to be the only channel through which the workers' grievances can be channelled and discussed openly with a view to changing Government policy.

Is this still the case?

Deputy Wilson had decided that the claim being made by the workers in Irish Shipping was a fair and just claim. If it was fair then, surely it is even fairer now, given the three years of deprivation and suffering these people have had to endure. He attacked the Government for not acting. He asked was it because of financial sensitivities and he said that these words take the biscuit. He dismissed any question of financial sensitivities out of hand. He then came to what I think was the nub of the difficulties in 1985. I never agreed with the arguments that were put forward, nor did Deputy Wilson. He said, at column 1865:

There were also legal sensitivities. That gets under my skin totally. This is the House that deals with legislation. Here is the place where a Bill could be brought in to nurture the sensitivities or wipe out the sensitivities or get rid of or whatever we have to do with these legal sensitivities. This is the House that could do it.

I submit that the Dáil, the other House and this House are the Houses where this can still be done. If the promises made in 1985 were genuine, if the arguments behind them were valid then, surely they are equally valid tonight.

I have deliberately played down this debate. I have not, as was always the case in the past, invited in the spokespeople for Irish Shipping. I did not tell them this debate was on. I welcome the opportunity to put their case, made by the Fianna Fáil official spokesman of three years ago, to the Minister here this evening. Have they become more of the forgotten people? Is there any sense of fairness or justice for these people, even at this late stage, when a promise was made to them in the solemnity of Leinster House, backed by the solemn commitment of the main Opposition party and put to the test of a vote after a six-hour debate over two days in that House, a vote in which virtually all Members of the other House took part? That was the solemnity of the occasion. That was the seriousness of the commitment of the then Opposition party. However solemn or serious, the fact is that the misery and the suffering of these people still remain. All I ask this evening is that the Minister tell us what his Government propose to do for the former employees of Irish Shipping and to tell us, yea or nay, if the promises given so solemnly in Opposition have any hope of being honoured.

I appreciate the fact that this debate on Irish Shipping is taking place in a very cool atmosphere. I would like to begin by assuring the House that I share fully the concern which has been expressed for the employees of Irish Shipping Limited and the situation in which they find themselves as a result of the liquidation of the company.

It is now just over three years since the liquidator was appointed to Irish Shipping Limited by order of the High Court. I do not propose to dwell upon the circumstances surrounding that regrettable occurrence, nor enter into academic dispute regarding the then Government's decision to allow the liquidation to proceed. Certainly there were serious errors of judgment by the management of the company, as referred to by Senator Manning, and an almost total lack of accountability to the Minister for Finance as shareholder during the period in which the commercially disastrous leasing commitments were undertaken. It is truly unfortunate that these decisions, taken by the few, should have so severely affected the livelihoods of so many people who had given long and loyal service to the company.

The liquidation of Irish Shipping considerably depleted our registered national shipping fleet. It was in an effort to address this serious problem that the Government recently introduced the Shipping Investment Grants Bill which passed all Stages in this House last week. That measure must be seen as part of this Government's commitment to the enlargement of the national fleet and the improvement of the job prospects of all Irish seafarers, including those who lost their jobs in Irish Shipping Limited. Let us link to the shipping investment grants scheme the two incentives provided for under the Finance Act of 1987: the acceptance of shipping, as a designated industry resulting in the reduction of corporation tax from 50 per cent to 10 per cent and the opening of the business expansion scheme for shipping payments.

We cannot, however, turn back the clock. Present realities must be faced however painful they may prove to be. Irish Shipping Limited at liquidation owed substantial amounts to their creditors and it is clear that their liabilities far exceed their assets. In such a situation the question of providing extra-statutory or ex gratia compensation to the former employees of the company raises complex and sensitive issues of a legal nature, the implications of which cannot be ignored.

I would like to refer to the recent debate in the Dáil when the former Minister for Communications, Deputy Jim Mitchell, in the debates on Irish Shipping and the Shipping Investment Grants Bill, said he had even gone outside the Government's legal advisers to see what could be done in overcoming the legal constraints in the Irish Shipping Limited case. He consulted senior counsel but established that there was no way that this could now be altered.

In repudiating responsibility for the debts owed to unsecured creditors, an important precedent was set which severely restricted and continues to restrict the scope for action in relation to extra-statutory or ex gratia compensation.

On 25 September last, together with the Minister for Labour, the Minister, Deputy Daly met with representatives of Irish Shipping workers. At that meeting it was explained that the Government had inherited a difficult and complex legal situation which inhibited their taking any action in the matter. The reasons which prevented the payment of compensation were also explained. As I indicated earlier, these related to the question of the State's responsibility in the matter of the company's unsecured creditors. While I do not propose to put a definite figure on these liabilities they are of an order which would have the gravest implications for the Exchequer should they fall to be discharged either partially or wholly from that source. Nevertheless, the Minister, Deputy Daly, undertook to have the legal difficulties reviewed again and that review is proceeding.

Each and every option open to us is being carefully assessed in terms of the legal implications involved. Senators will appreciate that while the matter remains unresolved it would be inappropriate, if not misleading both to the House and to the employees concerned, to speculate upon the outcome of the review. I do not want to raise hopes which it may not be possible to fulfil.

The Minister's bleak and very unhopeful reply flies directly in the face of every solemn promise that his party made in that debate. Having said that, I urge the Minister to do his very best to see that what can be done will be done. But I urge him also not to hide the truth from these people. They have suffered enough for too long. If there is no way in which the State will be able to do what justice says should be done, for God's sake, do not go on keeping these people in suspense. Do not give them false hopes. Admit that what was said in 1985 had no substance and at least take away from them any false hope that they will get justice.

I would like to point out that the Minister, Deputy Daly, and the Minister for Labour, Deputy Bertie Ahern, met with these people on 25 September. I have indicated to the House and to Senator Manning, in particular, that every avenue will be explored. I certainly appreciate that we cannot go on and that in the short term we must try to come up either with a solution or indicate the precise position to these people. I would like to put on record that in The Irish Times it was quoted recently that “unsecured creditors” were due in the region of £205 million. If the State had to accept liability for such a sum, the financial implications would be very serious. We are talking about large sums of money. I share the deep concern expressed by Senator Manning for the individuals concerned. As I have said, every avenue will be explored and I hope that we will not delay a decision whether it be favourable or otherwise.

The Seanad adjourned at 8.20 p.m. until 10.30 a.m. on Thursday, 19 November 1987.

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