B&I sought to close its service from Cork
Monday, December 30, 2013
The newly elected Government led by Garret FitzGerald insisted the B&I Ferries could only close its Cork-Pembroke service in early 1983 if it agreed to maintain a summer service, against the advice of an interdepartmental group.
By Seán McCárthaigh
Irish Examiner ReporterManagement at the ferry company had sought Government approval in Oct 1982 to close the route from Jan 7 the following year.
An interdepartmental group set up by the previous government under Charles Haughey claimed the operation of a summer service between Cork and the Welsh port would raise losses from £800k to £1.3m.
It rejected the idea of a summer service on the Cork-Pembroke route on the basis it would inhibit B&I from making the maximum use of its Rosslare-Pembroke service.
Local interest groups, however, claimed the company had lacked commitment to the Cork route and the service, using an old vessel, Innisfallen, was unsatisfactory and unattractive, which was not helped by moving it from Swansea and its failure to move to a new Ringaskiddy ferry terminal.
Transport Minister Jim Mitchell said he was satisfied there was no economic justification for an all-year round service on the Cork-Pembroke route. However, he was “not entirely convinced” by the committee’s opposition to a summer service.
He argued the complete termination of the Cork-Pembroke route was hard to justify at a time when the Rosslare route was suffering similar losses.
Mr Mitchell agreed with the decision to terminate the Cork-Pembroke service in Jan 1983 on the basis that B&I would operate a summer service. He recommended the position with regard to 1984 and future years should be reviewed towards the end of 1983.
In contrast, Finance Minister Alan Dukes supported the committee’s view. He claimed the Cork-Pembroke route was seriously undermining B&I’s financial position. He recommended that B&I should “disengage totally and permanently from Cork”.
Trade, Commerce and Tourism Minister Frank Cluskey expressed concern that Exchequer funding would not be used to support non-viable routes.
A report by the interdepartmental committee showed the Cork-Pembroke route had accumulated loses of £4.2m since 1979.&
The committee concluded that B&I’s only chance of profitability was to close its Cork service and concentrate on the Rosslare route.
Other State papers from Dec 1983 show the summer service incurred losses of £690,000 with the Government having to provide an extra subsidy of £500,000 to B&I. At the stage, Mr Mitchell recommended B&I’s proposal to withdraw entirely from the Cork route.
B&I, established in 1836, was nationalised in 1965. It was privatised in 1992 when taken over by Irish Continental Line.
© Irish Examiner Ltd. All rights reserved
Monday, December 30, 2013
The newly elected Government led by Garret FitzGerald insisted the B&I Ferries could only close its Cork-Pembroke service in early 1983 if it agreed to maintain a summer service, against the advice of an interdepartmental group.
By Seán McCárthaigh
Irish Examiner ReporterManagement at the ferry company had sought Government approval in Oct 1982 to close the route from Jan 7 the following year.
An interdepartmental group set up by the previous government under Charles Haughey claimed the operation of a summer service between Cork and the Welsh port would raise losses from £800k to £1.3m.
It rejected the idea of a summer service on the Cork-Pembroke route on the basis it would inhibit B&I from making the maximum use of its Rosslare-Pembroke service.
Local interest groups, however, claimed the company had lacked commitment to the Cork route and the service, using an old vessel, Innisfallen, was unsatisfactory and unattractive, which was not helped by moving it from Swansea and its failure to move to a new Ringaskiddy ferry terminal.
Transport Minister Jim Mitchell said he was satisfied there was no economic justification for an all-year round service on the Cork-Pembroke route. However, he was “not entirely convinced” by the committee’s opposition to a summer service.
He argued the complete termination of the Cork-Pembroke route was hard to justify at a time when the Rosslare route was suffering similar losses.
Mr Mitchell agreed with the decision to terminate the Cork-Pembroke service in Jan 1983 on the basis that B&I would operate a summer service. He recommended the position with regard to 1984 and future years should be reviewed towards the end of 1983.
In contrast, Finance Minister Alan Dukes supported the committee’s view. He claimed the Cork-Pembroke route was seriously undermining B&I’s financial position. He recommended that B&I should “disengage totally and permanently from Cork”.
Trade, Commerce and Tourism Minister Frank Cluskey expressed concern that Exchequer funding would not be used to support non-viable routes.
A report by the interdepartmental committee showed the Cork-Pembroke route had accumulated loses of £4.2m since 1979.&
The committee concluded that B&I’s only chance of profitability was to close its Cork service and concentrate on the Rosslare route.
Other State papers from Dec 1983 show the summer service incurred losses of £690,000 with the Government having to provide an extra subsidy of £500,000 to B&I. At the stage, Mr Mitchell recommended B&I’s proposal to withdraw entirely from the Cork route.
B&I, established in 1836, was nationalised in 1965. It was privatised in 1992 when taken over by Irish Continental Line.
© Irish Examiner Ltd. All rights reserved
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