The Department of Community, Rural and Gaeltacht Affairs is to end a controversial joint passenger-cargo service to the Aran Islands that was the subject of an investigation by the Comptroller and Auditor General (CAG).
The CAG report into the subsidised ferry services to the Aran Islands from Galway identified serious flaws in the contract to provide a joint passenger-cargo service.
It questioned a Government decision to renew the contract with the Clare-based company, O'Brien Shipping Ltd, in 1997 without conducting an evaluation of the performance of the company or the use of its service.
O'Brien Shipping secured the contract in 1992 and has operated the passenger and cargo service through an annual Government subsidy of €603,000, amounting to €7 million over the 12 years that the company has provided the service.
A Government report earlier this year found that there was general dissatisfaction on the Aran Islands with the quality of the scheduled cargo service provided by O'Brien Shipping.
In response, the shipping company told the authors of the report that the company offers its customers a quality, reliable, efficient and economical service.
However, arising from the report, the Department has opted to end the joint cargo-passenger contract approach and has now sought expressions of interest for a cargo contract between Galway to the three islands when the existing joint contract expires in December.
The Department is now offering two separate contracts to provide the cargo service - one to last two years from Galway docks and the second to serve the islands from Ros an Mhil for a further five years.
O'Brien Shipping Ltd yesterday confirmed it would be tendering for a new contract.
