Council to invest €200k in Cork ferry

CORK County Council is to invest €200,000 in the new Cork-Swansea ferry, the MV Julia, which is set to sail on March 1 next.

The ferry company, the Fastnet Line, is currently raising working capital from private companies and venture capitalists. The Fastnet Line is issuing bonds at €50,000 each, which are repayable over a four-year term.

County manager Martin Riordan won backing from all 48 councillors yesterday for the local authority’sinvestment. The council has also promised additional money to market the new service and councillors want their counterparts in Kerry and the Government to put their hands in their pockets to aid the venture.

Ger Power, the council’s head of finance, said that under the Local Government Act of 2001 it wasentitled to take such action if it was considered desirable to promote community interest. Mr Power said the cost of the bond will be charged to the reserve established from the sale of its interests in the Swansea-Cork ferry company in 1995.

That company ceased trading in 2006 and it is estimated that since then the lack of sailing has cost the south-west region€150 million in lost tourism revenue. Mr Riordan said he was particularly impressed with the fundraising carried out by West Cork Tourism and the fact they had already purchased their ferry.

“I’ve never seen such a successful fundraising initiative,” the manager said.

Cllr Noel Harrington (FG) said the council wasn’t alone as other corporate entities had purchased bonds. He added that he was anxious to see Fáilte Ireland get involved in marketing the ferry as soon as possible.

Cllr John O’Sullivan (FG) praised the ferry owners and said their business plan proposed that restarting the service would provide a €40m a year boost to the region.

Cllr Alan Coleman (FF) said that Kerry would also benefit and its county council couldn’t stand by and not invest.

“The ‘Merchant Princes’ should also come on board. Corporate Cork also needs to step up to the plate,” he said.

Cllr Jim Daly (FG) said several companies had already invested in the bonds, including the Clona Food Group which had spent €300,000.

Mr Coleman suggested that the county manager and county mayor lead a delegation to Minister for Enterprise Mary Coughlan seeking Government investment.

Mr Riordan said he would discuss that issue with West Cork Tourism and if they wanted a delegation he would be happy to go on it.