A Consultant's report highlighted serious deficiencies with the Jeanie Johnston replica Famine ship project as far back as 1999 - before major public monies were put into it in direct payments and by underwriting loans.
The final cost of the project, excluding a voyage, is expected to be just under €16 million (£20.3 million), the vast bulk of it public monies. The ship is about two weeks from completion, but is impounded at Fenit, Co Kerry.
Subsequent consultant's reports continued to raise serious concerns about work schedules, management structures and costs over-runs, documents released under the Freedom of Information Act reveal.
Yet in the period 1999-2001, Kerry County Council and Tralee UDC underwrote loans of €2.5 million and gave direct assistance of €500,000 in addition to other substantial guarantees already given.
As well, some €4 million was released to the project directly from Exchequer funding through the Department of the Marine in the period 2000 - 2001.
This weekend the Minister for the Marine, Mr Fahey, called for the structured winding down of the Jeanie Johnston replica Famine ship company to allow it to be taken over by Kerry County Council and have its creditors paid.
No more State money is available for the 19th century sailing ship for a voyage to America. The project has gone to almost four times its original budget, Mr Fahey said. If the numerous bodies, led by Kerry County Council, who have given loans and monies to the project step back then the trade creditors can be paid. They are owed at least €2 million, it is understood.
The focus group of eight Government Departments, Kerry County Council, Shannon Development, Bord Fáilte, the Elan Corporation and other groups, has studied options for the replica famine ship and has not identified a long-term use for the vessel which will not involve the State in ongoing subvention, Mr Fahey said in a statement.
Even if the State were to take it over as a fully operational sailing vessel for sail training and as a show ship, the cost to the State would be €1.27 million a year, the focus group has told Mr Fahey. The cheapest option, to lay it up and "mothball" the ship would cost €152,000 per year.
Councillors in Kerry are critical of the fact that a highly critical Ernst and Young report presented to the council executive in February 1999 was not released to them before they agreed to underwrite the €2.5 million bank loan in November of that year.
That report highlighted "serious deficiencies" in work schedules and warned that a failure to sail as planned in 2000 "would be catastrophic for the project".
It was also highly critical of the Jeanie Johnston company's failure to provide accurate and reliable information on a regular basis to ensure the ship would sail in time.
No annual returns had been filed by the company since it was set up four years previously that 1999 consultants report said.
Another report, by O'Hare and Associates for the Department of the Marine in September 2000 also highlighted serious management deficiencies and noted the project was "currently insolvent and unable to pay its debts as they fall due".
A third from Project Management Consultants in August 2000 noted the need for proper structures.
However, documents relating to February 2001 noted that the advice was being largely ignored by those responsible for completing the ship.
Former tánaiste and minister for foreign affairs, Mr Dick Spring, said yesterday: "My understanding is the trade creditors will be paid. This is both necessary and desirable." The ship was about a fortnight away from being finished and this too had to be done.
"There is huge anticipation by the Irish community in the States," Mr Spring said. The ship still had valuable potential in marketing Ireland in America, he added.