asked the Minister for Transport if he will outline the financial transactions involving Allied Irish Banks, the Insurance Corporation of Ireland Ltd. and Irish Shipping Ltd.; and if he will make a statement on the position of Irish Shipping Ltd.

The position is as follows. Irish Shipping Limited have a 75 per cent shareholding in a company named Oceanbank Developments Limited, the remaining 25 per cent shareholding being owned by Allied Irish Banks Limited.

Oceanbank Developments Limited held 3,469,500 shares in the Insurance Corporation of Ireland. On 24 August 1983, Allied Irish Banks made an offer to acquire the whole of the issued share capital of the Insurance Corporation of Ireland not already owned by them. This included the shares held by Oceanbank Developments Limited. The AIB offer for the shares was: nine AIB shares for every four ICI shares or £3.50 cash for each ICI share. The Board of the Insurance Corporation of Ireland recommended acceptance of the offer.

The Board of Oceanbank Developments Limited decided to accept the Allied Irish Banks offer in a combination of shares and cash and the company received £5 million cash and £4.6 million Allied Irish Banks shares in return for their ICI shareholding.

As the Deputy is no doubt aware, Irish Shipping Limited, after 15 consecutive years of profit, are now experiencing grave financial problems stemming from their deep-sea operations. In the year ended 31 March 1983 the company incurred a loss of £14 million and the losses in the current financial year are expected to be even greater. The company's present serious financial situation is largely attributable to the collapse of the world deep-sea freight market. The catastrophic decline in freight rates is due essentially to the world economic depression resulting in a substantial excess of capacity over demand and I understand that prospects are poor for any improvements in freight rates in the short-term.

The serious financial position of Irish Shipping Limited is at present being examined by my Department in consultation with the company and I expect to be making a submission in the matter to the Government in the near future.

Is the Minister satisfied that the interests of Irish Shipping and, consequently, the taxpayers are well protected in the new deal?

I think so. It is a reasonably good deal.

It is important that the House realise the truth of what the Minister said about the tramp business and the colossal cost of it and that half the cost is available for charter fees. As there is an element of once-off in this deal, is there not a weakening of the Irish Shipping position? I accept that the share is a continuing thing but there is an element in the cash deal of a once-off. Would the Minister be afraid that this would be used to defray debts now and that next year such money will not be available to defray debts?

It is a once-off, but it is beneficial. The 4.6 million AIB shares which Oceanbank now own were valued recently at £7.89 million, so it is a very good deal and will help the balance sheet of Irish Shipping and it will help them in general.

The remaining questions will appear on tomorrow's Order Paper.