Savings package ‘may not be enough’

THE €10 million savings package pushed though by Irish Continental Group (ICG) on its Irish Ferries operations may not be enough to keep the group competitive in a highly-aggressive market, the group has warned.

The deal, which sees 500 workers replaced by cheaper contract overseas workers, stands for three years.

But ICG manager director Eamonn Rothwell warned the Irish Ferries cost base would have to be reviewed when the deal runs out.

Rising fuel prices and stiffer competition will keep the group under severe pressure, he said.

Mr Rothwell pointed out that the new deal still leaves Irish Ferries less competitive than the opposition and it was conceivable that its base could be seriously eroded in the next three years.

Much will depend on how other carriers react to cost pressure and to the changing business environment where tourism also continues to decline.