Pat Rabbitte (Dublin South West, Labour)
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Question 326: To ask the Minister for Agriculture and Food the procedures adopted in the selection of a shipping business in 1997 to receive financial assistance from her Department for the provision of a substitute ferry service to carry live cattle to the European continent; the amount of such assistance provided and the conditions attaching to the grant; the date on which the decision was made and the manner in which it was notified; if her Department made adequate checks on the financial suitability and track record of applicants for this aid and of the successful bidder in particular; if and the manner in which the assistance was awarded to the successful bidder; if her Department has satisfied itself that any State payments appear in the financial books and accounts of the company to which it was awarded; and if she will make a statement on the matter. [12758/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The carriage of most categories of livestock from Ireland to continental Europe was discontinued by the main commercial ferry operator from August 1997. Given the vital importance to the Irish agricultural sector of an export outlet for live cattle in particular, tenders were invited for the provision of a replacement ferry service. Six responses were received from parties interested in providing such a service. Following evaluation by my Department, which included an evaluation by an independent assessor, a total of £1 million in State funding was made available to a company called Gaelic Ferries Limited to provide a service subject to the following conditions: State grant to assist with the start-up of the service would be limited to a maximum of £1 million, payable over the period to the end of April 1998 on a decreasing basis to be finalised by negotiations; owner's equity would be initially £100,000 and would be increased to at least £200,000 by the end of the initial three months of operation; every voyage would be accessible to livestock exporters for the carriage of livestock and livestock would be given preference over other freight in the event that on any voyage demand were to exceed capacity.

The decision to provide assistance was made in principle in September 1997 and the decision to provide assistance to Gaelic Ferries Limited was notified to the company by letter dated 9 October 1997. In its submission, Gaelic Ferries Limited had provided a business plan including financial arrangements and projections. This business plan was evaluated by my Department and by the independent assessor. The company was a joint venture involving the Port of Cork, Dundalk Shipowners Limited and the Irish Road Hauliers Association. Payments were made to the company as follows: £450,000 in October 1997, £250,000 in December 1997, £200,000 in February 1998 and £100,000 in March 1998. The service was operated from October 1997 to May 1998 when it was discontinued on the grounds that it was not commercially viable. By that time, alternative commercial ferry operators were offering facilities for transporting live animals to the Continent.

As examination of financial books and accounts of private companies is a matter for the Office of the Revenue Commissioners, the Companies Registration Office and other regulatory bodies. My Department did not undertake an audit of this company's accounts.