The Jeanie Johnston replica Famine ship project in Co Kerry was rescued yesterday by a Government grant of £2 million, bringing the total State investment in the scheme to £7.7 million.
Announcing the latest grant the Minister for the Marine and Natural Resources, Mr Fahey, said the Government was conscious that the project was a high-profile one which had involved North-South cooperation. But he warned of concerns at the escalation of costs "and evidence of past management inadequacies."
Mr Fahey said he was determined that the latest tranche of State funding would be carefully controlled "and safeguarded in the most appropriate way".
The money was being allocated, he added, on the strict condition that the Jeanie Johnston company prepare a viability plan for the vessel upon its completion, and on the strict understanding that its running costs would not be borne by the State.
Trainee shipwrights from Northern Ireland and throughout the Republic have worked together on the project for several years, and politicians from both sides of the political divide in Northern Ireland have given it their support.
When the project was first mooted three years ago the estimated cost of building a replica of the original 18thcentury vessel which brought thousands of emigrants to the New World during the Famine years was under £3 million.
Since then delays, currency fluctuations and stringent international maritime requirements for the fitting out of the vessel have led to soaring costs. Including yesterday's allocation, the final cost will be in the region of £10 million.
Matters reached a crisis during St Patrick's weekend when one of the main stakeholder, Shannon Development, decided not to support a rescue package. For the past few weeks the Department of the Marine has been paying wages and other costs.