The Government was yesterday urged to pledge grant aid for a €4 million terminal in Cobh within the next six weeks to allow the port of Cork to capitalise on expanding cruise liner business, which last year was worth €66 million to the Irish economy.

Port of Cork chairman Mr Dermot O'Mahoney said the company had already spent more than €1 million on works at the Cobh terminal but a clear commitment to grant-aid the project was necessary from the Government.

"A decision in principle on Government grant aid will need to be made by the end of October to ensure that the upgraded cruise terminal will be ready in time for the 2005 cruise season," said Mr O'Mahoney during a visit by the luxury Celebrity Cruises ship, Constellation, to Ringaskiddy yesterday.

Mr O'Mahoney noted that the cruise industry was a growing contributor to the economy. Last year, Ireland hosted 127 ships at Belfast, Cork, Derry, Dublin and Waterford with some 77,000 passengers and an additional 39,000 crew visiting the five ports.

He said a report by Dr Richard Moloney and Mr Donagh O'Sullivan of the Centre for Policy Studies at UCC in March 2004 found that cruise ships visiting Ireland contributed €66 million and created 484 full-time equivalent jobs North and South.

Some €35 million of this came in direct contribution and €31 million in indirect contribution.

Cork hosted visits from 31 shops with 23,000 passengers and 11,500 crew who contributed almost €20 million to the local economy, said Mr O'Mahoney.