ON MONDAY, the new Fastnet Line ferry service between Cork and Swansea will launch. The so-called “People’s Ferry” has substantial backing from Cork city and county councils, Kerry County Council, and local investors.
To date, West Cork Tourism Co-op has got €2.6 million in equity, while recent reports suggested sizable funds might be forthcoming from the National Treasury Management Agency or the National Pension Reserve Fund.
Up to 30,000 cars and 80,000 passengers are expected to use the service in 2010, and it is estimated it could give the southwest a €150 million tourism boost. Fastnet has predicted that the service will make an after-tax profit in 2012 of €500,000.
On February 17th, junior Minister Billy Kelleher told the Dáil the Government was precluded by EU rules from investing directly in the venture, but noted that Minister for Transport Noel Dempsey has given approval to the Port of Cork Company for it to purchase €200,000 worth of bonds from Fastnet.
But is understood that Stena Line and Irish Continental Group are unhappy at the level of funding by State enterprises and county councils. Does this constitute State aid? It’s a moot point, and might yet be referred to the European Commission for adjudication.
