Tony Killeen (Clare, Fianna Fail)

I propose to take the questions together.

The House is well aware of speculation surrounding affairs at Irish Ferries and, in particular, the intolerable consequences upon the staff thereof who, against a background of threats to their livelihood, are being asked to take very important decisions from their perspective. Issues which arise for Irish Ferries and their staff must be addressed internally within the organisation, and such is the legal requirement regarding most other sectors of employment under the Protection of Employment Act 1977, although seafarers are excluded from it. This issue has not arisen in isolation and, no doubt, has a background. It must be resolved within the organisation itself, albeit with the assistance of the State's industrial relations machinery.

Ireland's access to overseas markets is vital, and companies such as Irish Ferries have benefited from our economic growth. They have also benefited from the stability of the Irish industrial relations framework. Accordingly, it is in the interests of all parties that a resolution be reached in the matter. I understand that the national implementation body met yesterday evening to consider the situation in Irish Ferries and that issues remain under its consideration.

I also understand that the Labour Court has been in touch with both parties, and I strongly urge them to engage with it with a view to seeking a resolution. We are all aware that the legal framework of the employees concerned is dictated by the laws of the state in which the ship is registered. Accordingly, Irish registered ships remain subject to the provisions of Irish law regardless of where the ship is.

Primary responsibility for the sector rests with the Minister and Minister of State at the Department of Communications, Marine and Natural Resources. The Minister of State has already stated that he considers the measures announced extreme and that the implementation of the proposed redundancies would have grave consequences for Irish seafarer employment, given Irish Ferries' position as the largest employer of Irish seafarers. He expressed his hope that the company would delay implementation of its plan until recent proposals concerning State aid guidelines for the sector have been considered by the Government.

The Department has sought preliminary legal advice from the Office of the Attorney General on whether a statutory redundancy situation will exist in Irish Ferries. As no direct communication has been received in the Department regarding what exactly the company intends from a statutory redundancy perspective, it will not be possible for the Office of the Attorney General to provide definitive advice at this stage. I repeat the Government's position on the current Irish Ferries situation, which was given by the Taoiseach to this House yesterday, namely, that in an Irish labour context the action is sharp practice and totally unacceptable.

Part of the question referred to the cost. Since we do not have the figures, it is difficult to give it. However, I have indicative figures. If a statutory redundancy situation were established at Irish Ferries — no note has been received in the Department in that regard — and 500 workers with 20 years' service, each earning €600 a week, were made redundant, the gross cost of such statutory redundancy would be 500 x 600 x 20 x 2 x 1, which is €12,000,500. That is two weeks' pay per year of service, plus a bonus week.

See this speech in context