asked the Minister for Finance whether it is a fact that the Industrial Trust Company of Ireland, Ltd., was established in 1925 with a subscribed capital of £162,827 of which the Government provided a sum of £50,000; whether certain members of the board of directors of the company were nominated by or elected as representing the Government and, if so, whether in that capacity such directors informed the Government that the company invested from time to time substantial sums of money outside Ireland in speculative enterprises; whether arising out of these transactions the company incurred losses amounting to £151,396; whether steps were taken by the Government to safeguard its interests in the company and whether the whole or any portion of the sum of £50,000 originally provided by the Government is now recoverable.
Ceisteanna—Questions. Oral Answers. - Industrial Trust Company of Ireland, Ltd.
The Industrial Trust Company of Ireland, Ltd., was established in 1925 with a subscribed capital of £162,827 in ordinary shares of £1 each, £50,000 of which were taken by the Government and held in the name of the Minister for Finance. Two of the members of the then existing board of directors of the company were nominated by the Minister for Finance to act as his representatives on the board. In that capacity they furnished annual reports on the policy of the company towards Irish investments and, in particular, on the work of the company with regard to loans guaranteed under the Trade Loans (Guarantee) Acts; they made no report on the other work of the company and no information was at first furnished to the Minister regarding the nature of the investments held other than that made available to all shareholders at the company's annual meetings. The liquidator of the company reports that the total net loss incurred on realisation of investments amounts to £157,396. From the time that it became apparent that the company was likely to be in financial difficulties, my Department has had the position under review and has taken all possible steps to safeguard all the interests involved. In this connection, however, it should be appreciated that, apart from the right of nominating two directors of the board, the Minister for Finance was in this case only an ordinary shareholder and, as such, his rights were limited to those conferred on shareholders by the Companies Acts and by the articles of association of the company. I am not yet in a position to state what part, if any, of the original investment of £50,000 will be recoverable. The report of the liquidator is being examined and the extraordinary general meeting to consider his report and accounts has been adjourned until the 29th of March next. I should, accordingly, be glad if this portion of the question were deferred.
Do I take it that the directors of the board appointed by the Minister for Finance to represent his interests in the matter did not report specifically to the Government on the investments in foreign speculations and these were done completely within their own discretion?
They made no report on the investments other than in Irish securities. Subsequently information was elicited from the board as to the manner in which the board's funds had been invested.