Áine Brady (Kildare North, Fianna Fail)

As stated in the Adjournment debate on the same topic in the Dáil last Wednesday, the Minster for Transport has no function in, or finance for, the provision of ferries on this or any other route, other than being as supportive as possible. The Minister certainly hopes the Cork-Swansea service can be re-launched successfully and that it is commercially sustainable.

Safety is paramount for any new passenger ferry service and the Department of Transport has important functions in that respect. This includes a mandatory initial safety verification of a roll on-roll off passenger ferry prior to the start of the operation of the ferry on a regular service. This is required under EU Directive 1999/35/EC. The directive applies to all ro-ro passenger ferries and high-speed passenger craft operating to or from a port of a member state, regardless of where the vessel is registered. The directive requires that the host states, in this case Ireland and the United Kingdom, must carry out an initial verification on a ro-ro passenger ferry prior to the start of the operation of the ferry on a regular service. The ship must also carry valid certificates issued by the administration of its flag state, in this case Bermuda. The marine survey office of the Department of Transport will co-operate closely with the UK authorities in carrying out these verifications. The marine survey office has been advised by Fastnet Line that the ship should be ready for inspection later this week and surveyors will travel to Swansea to carry out the inspections.

The Minister for Transport appreciates that the suspension of the service since 2007 has had an impact on the local region, in particular on tourism, and that there is a strong desire for the service to be re-launched. However, current market conditions are very challenging in the shipping sector. The sector has been hit harder than most by the global recession. Like all businesses, securing investment and bank financing is very difficult for shipping companies at the moment. Ferry services to the UK also face the additional challenges of fluctuating fuel prices and of operating all year, including when tourist numbers are low, in order to offer a service to the freight industry.

Since the previous operator withdrew the service, the Port of Cork Company has worked very hard to try to have it reinstated. In early 2009, the West Cork Tourism co-operative was formed with the objective of re-launching the service. Despite the efforts of the port company and the co-operative, no existing shipping company could be found to operate the service. The co-operative then took the courageous decision to try to re-launch the service itself. The Minister recognises that great efforts have been made by all concerned to make this a success. This has been a community based initiative and the Minister acknowledges that it has considerable and broad spread regional support.

Over the course of 2009, the co-operative raised €2.5 million from the sale of shares to local investors. Since the purchase of the vessel in September 2009, Fastnet Line has been trying to raise further funding to finance the pre-launch and operating costs of the business. The Minister for Transport has recently given approval, with the consent of the Minister for Finance, to allow the Port of Cork Company make a commercial investment by purchasing €200,000 of bonds from Fastnet Line. The final decision was entirely a matter for the board of the Port of Cork Company.

The Minister understands that some of the local authorities have also made similar investments. It is not open to the Government, under State aid rules, to provide direct financial support to the venture, but it is advised that commercial investments by State agencies are permissible. A range of supports is available from various State agencies for any new venture. Fáilte Ireland is available to support any new service through active promotion and marketing. The Irish Maritime Development Office has also offered its services to Fastnet Line. In summary, a broad range of support has been provided to Fastnet Line to help make it a success.

The Government has taken a number of other initiatives in recent years to support the development of the Irish shipping industry generally. The Irish Maritime Development Office is the shipping sector's statutory, dedicated development and promotional agency. The Government has introduced a number of fiscal and strategic policy measures to promote Irish maritime sector activity, both at sea and on shore. Such promotion concentrates on fiscal areas, marketing and the education of seafarers.