The Jeanie Johnston replica Famine ship is "potentially a valuable State asset", Fine Gael TD Mr Simon Coveney has said.
The Minister for the Marine, Mr Fahey, has called for the structured winding down of the company that oversees the ship, to allow it to be taken over by Kerry County Council and have its creditors paid.
He said the project had run to four times its original budget. The final cost, excluding a voyage, is expected to be almost €16 million, the vast bulk of it public monies.
"It would be a scandal if the State didn't look for a return or a dividend on its investment," Mr Coveney said. The TD for Cork South Central said his opinions did not represent Fine Gael policy.
The ship is about two weeks from completion but is impounded at Fenit, Co Kerry.
Mr Coveney said he agreed the company should be wound down, but did not think Kerry County Council had the "experience or expertise" to handle a project of this scale.
Instead, the Minister should put in place an expert group which would spend "the next six to nine months coming up with a viability package for the ship".
He said that on a long-term basis, the ship could be used as a sail training vessel, as a means of promoting the State abroad, or as way of rehabilitating juveniles through being part of the ship's crew.
Asked about future investment in the project, he said no further capital expenditure was needed.
He said he did not want to estimate how much further investment the ship might need, but added that the State's sail training ship, the Asguard II, cost about €350,000 a year to run.
Mr Coveney said the Minister was not looking at the potential benefits of the project.
"We have spent the pounds. We shouldn't be saving the pennies at this stage," he said.