Irish Spruce liability
Brennan questioned the State’s exposure under the Irish Spruce termination clause. Mitchell said the £38 million figure reflected the State-funded share of the ship’s price, including a shipyard subsidy arrangement.
The Minister mentioned the Irish Spruce in his reply and mentioned that the possible loss there would be £8 million, is that correct?
Comment on this
In the Minister's speech announcing the liquidation of Irish Shipping the Minister gave the House a figure of £38 million as being an early termination clause. The value of that ship is probably about £18 million and I make that an exposure by the State of £20 million, not £38 million.
Comment on this
This is where an understanding of the figures is very important. The Irish Spruce was in any event being paid for three-quarters by the State, one-quarter by my Department and half by the Department of Industry because of an arrangement that was made by the Government for the building of the Irish Spruce. It was in effect a shipyard subsidy. In any event, three-quarters of the price is being paid by the State and that would account for the £38 million.