IRISH Ferries has written to the Government seeking a £10 million subsidy urgently to keep its continental route open. The company is facing a strike by its unions because it wants to close the route for the winter.
In the letter, Irish Ferries states that if the strike goes ahead all 1,100 employees could be laid off. Irish Ferries is privately owned and is the only Irish company providing a ferry service to Europe and Britain.
The Seamen's Union of Ireland predicted "selective action" on ferry routes over the weekend although that union and SIPTU are to meet the company for talks at the Labour Relations Commission on Monday.
The letter seeking State aid was sent to the Minister for the Marine, Mr Barrett, by the managing director of the company's ferries division, Mr Gerry Hickey, yesterday afternoon. Copies were sent to several other Ministers, including the Tanaiste, Mr Spring, and the Minister for Social Welfare, Mr De Rossa.
It stated that turnover on the Rosslare to Le Havre route has dropped from £30 million to £20 million over the past four years, while costs have increased by 10 per cent.
It added that it would cost £6 million to bring the St Killian II into line with new transport regulations and "an investment of this amount is not warranted in a ship of this age".
Mr Hickey wrote that if the company was "to give a commitment to the route for a period.
It would certainly involve a subsidy in order to make a year-round service viable".
It accepted that the question of subsidies "is always a difficult one", but pointed out that the French government recently won EU approval for a £40 million investment in Irish Ferries' main rival, Brittany Ferries. "We believe a similar approach can be adopted in our case. For example, a subsidy of £10 million over three years."
If the continental service closes, Irish Ferries said, 180 full-time mariners and up to 300 temporary staff in peak season would lose their jobs. A further 50 on shore jobs would be lost in Wexford.
It said a subsidy of at least £2 million was needed to keep the route open this winter. If the threatened strike over the lay-off of over 100 full-time staff happened it could affect all 1,100 employees and "have a devastating effect on trade".
Mr Paul Smith of SIPTU, who represents ships officers and about a third of the ratings, said last night that he welcomed the company's decision to inform the Government of the crisis it was facing.
However, he added that "the union will want to know exactly what would be required to put the company on a viable long-term basis before we would be willing to endorse its proposals.
"We would not want a £2 million subsidy given just to keep the service going for the winter and then see the company coming back looking for more next year.
The general secretary of the Seamen's Union of Ireland, Mr William Stacey, warned yesterday that there was a serious danger of disruption over the weekend.
He predicted "selective action" and said his union will stay in dispute until the issues are resolved. We've no intention of deferring action until the conciliation conference on Monday".