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THE DEPARTMENT OF Defence has come in for further criticism after it stated that it had not set a reserve price for the sale of the former Irish Naval vessel the LÉ Aisling.
The ship was sold at auction in Cork for €110,000 earlier this year. It has since been put on sale for a starting price of $750,000 (€683,000) by the private seller.
The Department of Defence said in a statement today that it had set no minimum reserve price on the vessel. It also said that the sale was appropriate and that “in all such situations the prevailing market determines the price achievable”.
“The Department of Defence is aware of the proposed resale of the former LÉ Aisling for an asking price of $750,000,” a spokesperson said.
However, the Department has no trailing obligations in relation to the vessel and any hoped for resale price is a matter for the new owner.
Speaking this morning on Today with Seán O’Rourke, Fianna Fáil Defence spokesperson Lisa Chambers criticised the sale, and called on the Defence Minister (Enda Kenny) and Department to answer questions around it.
She said the Defence Minister should answer whether he thought the State had gotten value for money with the sale.
“If there was no independent evaluation, why not?,” said Chambers.
If there was not reserve put on the vessel before it went for auction definitely the minister needs to answer questions on that.
Because in my view that is taking a risk that is unnecessary in terms of the sale of a State asset.
In its statement the Defence Department said that the vessel – which was decommissioned three years ago – was a drain on resources while it was in the State’s possession.
“While the vessel remained in the ownership of the Department, it continued to be a drain in terms of both maintenance and personnel costs and resources,” a spokesperson said.
It was also taking up scarce berthage space in the Naval Basin. The vessel would also have seen a deterioration in condition and consequent reduction in value as time went by.
In view of this, the Department said it was “imperative that the vessel was sold at an early date”.
If a reserve price was set and was not met, the Department would have incurred further costs to dispose of the vessel by way of scrap in an environmentally sound manner.
Speaking earlier to RTÉ’s Morning Ireland, Fine Gael TD Alan Farrell said that he believed the sale would be raised at the Public Accounts Committee on Thursday.
The LÉ Aisling’s sister ship the LE Eimear was sold for €320,000 in 2013.
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A gentleman called Kevin Barry posted this yesterday: “I am a retired Marine Engineer with 20 years experience and 10 of them as Chief Engineer on VLCC vessels. I can assure the sceptics on here that a 35 year old ship is only worth the scrap value of the metal after a very expensive dismantling process and dangerous ma and add to that materials have been properly disposed of. Metal fatigue of the structure will be enormous and significant corrosion would also be a factor.
The present vendor could be compared to a dodgy car salesman.”
@Honeybadger197:
Pull the other one
@Honeybadger197: Well some guy out there currently values it at an awful lot more than 110k. And if someone buys it, he’s gonna value it at a lot more than 110k. That’s the bottom line, regardless of whoever say what!
@Christy Nolan: If you have an issue with the opinion of someone qualified to discuss the above, you’ll really need to put a bit more effort into your reply.
@Honeybadger197: and just because someone has listed it for €683,000 doesn’t mean it’s worth that. Someone could go on ebay or Donedeal or similar and put their car up for sale with a €5million pricetag, that doesn’t mean anyone would actually buy it at that price.
@Honeybadger197: stop honeybadger this crowd don’t want to hear the truth.
@Honeybadger197: That seems a bit unfair, are you suggesting that the auctioneer isn’t entitled to his 20% commission on the sale of the vessel.
@Adrian:
And if someone buys it
Emphasis on the word “IF”
@Honeybadger197: can you verify that he has those qualifications?
because in my experience, people can post whatever they want, and people will repost it without verification
@Chrip Ramsay: Why dont you ask him directly? He has commented directly below me. Strange that you didnt.
@Chrip Ramsay: I can verify my qualifications and work history no problem.
But as I was just making a comment not making a proposition I don’t see why I should. In Ireland hundreds of people would know me from my time in Irish Shipping Ltd.
Somebody is really flogging this story. The retired patrol vessel had no value to the state.
I would concur fully with the Department of Defence Statement.
I think the state was actually lucky to be able to dispose of it at auction, the alternative would have been to scrap it at enormous cost to the taxpayer.
The fact that the EU actually financed the purchase of the vessel when new may require that it was disposed of to the highest bidder without a reserve price.
If I was invited to sail this vessel to a port involving a long sea voyage I would have refused, no matter what money I was offered for the task.
Like having an old banger on the drive way. Sell it for whatever you can get so that it won’t cost you to scrap it!
Fully agree I’m am fimilar with this boat which seldom completed a full tour without a mechanical issue . As a naval vessels it would need to be reclassified and recertified before it could be sold . This story is being given legs by possibly well intentioned but misinformed individuals with no industry knoledge
To prove their point, Sinn Fein have just bought a new kettle in Arnotts for €29.99.
They’ve put it straight up on ebay for €299,999 and are now demanding an enquiry as to how they could so easily pull off this ingenious arbitrage using simple household items and lock-in such a huge potential profit.
The public is angry they say, and are demanding to know how Arnotts are able to sell a €299,999 kettle for only €29.99. Something stinks and they are determined to get to the bottom of it.
@alphanautica: that’s a filthy lie! You would never find a kettle for only $30 at Arnotts.
Here is an idea, why not ask Paddy Power to run a book on the price the new vendor gets for it. Then everybody will be able to put their money where their mouth is.
The €600K is an asking price by some chancer who is currently out of pocked in excess of over €300K on this vessel already. According to Gavin Reilly (formally of this parish) by the time the current owner paid all the fees associated with de-listing this ship and moving it from Cork together with auction fee and the purchases price. So when he has it sold if he manages to get it into its asking price he will have done well. But as anyone who ever sold anything knows, there can be massive difference between an asking price and what is actually received. This vessel was offered for sale at auction to the highest bidder. There would be no fairer more transparent way of selling it. This is really a none story.
@Anthony O Reilly: no Anthony – it should have been advertised in nautical markets for months and placed for sale by Tender !
That way it certainly would have done much better – auction house at fault here but the department of the marine totally !
@Mike Howard: Do you know It wasn’t?
@Mike Howard: Again, do you know it wasn’t advertised?
Of course it didn’t. Anyone going to be surprised… No
Help Name the Crew of the LE Shinnerboat:
Admiral Adams,
Deck hand Mary lou
Cabin Boy Aengus O’Snodaigh
Etc. Etc.
@Alan Cooke: provy mcprovoface
@Alan Cooke: why don’t you go outside and play with all the other little kids. Not healthy playing by yourself . That’s obvious by your comments. You Need some fresh air , blow away those voices in your head..
@LITTLEONE:
I don’t play with little kids unlike relatives of others that you admire.
@Alan Cooke: ah will your mammy not let you out … Poor you. No wonder your all upset and cranky..
@LITTLEONE:
Whoosh…………………….over your head!
Bit on the slow side today, get out the wrong side this afternoon?
@Alan Cooke: see . Told you, you need go out and get some fresh air. Hearing voices in your head not good for you. Whoosh . Definitely someone that needs to go out or seek help..
I have just had a look at similar size and aged vessels for sale. I could find none 35 years old, nearest in age was 30 years old. Others similar size but younger ex Naval Patrol vessels are averaging €170,000
I would guess including costs to date the buyer is at a huge loss already.
Approximate values are available online for all ships, yachts and boats – like cars.
I am really surprised that we have so many experts in the field of old redundant Naval Patrol Boat sales. Their knowledge will surely compliment our resident Quantative Easing expert, ie Wall/Beingi or what ever his current non de plume is.
Much as I don’t think did a good job this was an internationally advertised auction with a number of scrap dealers and dealers there and only two bid. If there had been a reserve it just wouldn’t have sold. I doubt scrapping this is like scrapping a car either.
Our government is full of incompetent fools. We don’t hire the best, we hire lazy people who want a job they can’t be fired from and a pension. We don’t get people who are ambitious or passionate. There is an attitude of “that’s someone else’s job” within the public service and there is a complete lack of accountability and whoever is at fault here will suffer no consequences. If this happened in the private sector heads would roll and rightfully so.
Government sells unwanted asset that costs resources to keep to highest bidder in an open auction.
This is a scandal, how?
Be no secret when sold on. Hope journal do a piece when sold again. Will show up the FG trolls for the shi%e they spew ….
@Willy Malone: Ah Will with the two cheeks of one arse fixation. If you are referring to me I have never once in my life voted for Fine Gael.
@Kevin Barry: Dont mind Willy. His recent contributions include saying FG will be known as the blouse shirts if Varadkar becomes leader. That’ll give you a, thankfully brief, glimpse into his mindset. Cheers for the inside track on the shipping industry.
For a country with so much debt, these parasites just love giving things away for little or nothing. All because it will never cost THEM a cent of the high wages they are paid. This story doesn’t surprise me at all.
How much was the ship costing to berth and maintain before it was sold? They could have spent money keeping it afloat whilst waiting for someone to pay more for it, or get rid of something that was costing money to maintain. It might attract a higher price now that it is in a better location and registered but getting it to that stage has cost the new owner quite a lot of money so far. It sounds like the market for these types of vessel is quite depressed. The initial buy price is only the start of the cost of owning this ship.
@Andrew:
2 best days in a boat owner’s life – the day he buys it and the day he sells it.
Whoever was responsible for the sale of this ship should be brought out to sea, have the anchor tied around is ankles and throw overboard.
It might actually find a home for a decent price as there are buyers out there that will just paint it and use it a moored party boat/Mantoy status symbol for alpha males or rock stars. These sums of money are peanuts to the right punters. Many own a couple of Sunseekers for shopping and check out their prices for toys. I used to know the market years ago as that was my game once. I’d say it might even end up with massive paintball cannons on it. Nothing would surprise me with the people who might be interested. It would go well with their collection of Cold War and modern battle tanks.
Take the difference out of there deafness claims and there baldonald fumes claims. Fcuking joke of a force.And they never go to a proper war zone. Maybe if they were in Iraq or Afghanistan then they would be real soldiers. Not pulling people off boats and being called heroes.
Cheap
If the Guards knew they could have bought it for the Templemore Boat Club!!
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