I move:—
That a sum not exceeding £6,720 be granted to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1955, for the repayment to the Central Fund of sums advanced under the Trade Loans (Guarantee) Act (No. 5 of 1939, Section 10).
In the Trade Loans (Guarantee) Act, 1939, it was provided, where an advance is made under the Trade Loans Acts, or an advance made from Central Funds, that if the whole or part of the advance remains outstanding after two years it shall be repaid on the direction of the Minister for Finance out of moneys voted by the Oireachtas.
This Supplementary Estimate is, therefore, necessary to ensure recoupment of an outstanding advance made by the Central Fund in the financial year ending March, 1952. The annual account for the year ended March, 1952, indicated that an advance of £8,969 18s. 9d. was made by the Central Fund to fulfil a guarantee to a firm. Part of the advance, namely, £6,720, is now outstanding for over two years and it is necessary to provide for the repayment of that sum to the Central Fund.
The facts of the case are briefly that a loan of £15,000 was guaranteed in July, 1951, to enable a firm known as Parlanti Castings (Ireland) Limited, Jamestown Road, Finglas, to acquire plant and machinery for scrap metal reclamation and refining, for moulds, laboratories, motor and stock. The company had to withdraw £8,880 out of the £15,000 guaranteed to them when, following considerable difficulties arising from the management of its affairs, it was compelled to go into voluntary liquidation. Under the terms of the trade loan guarantee a receiver was then appointed over the assets of the company but the proceeds of the assets were insufficient to meet the liabilities of the company in respect of the loan, plus interest amounting to £8,920. To date, a sum of £2,250 has been received out of the realisation of the assets. This amount has been repaid to the Central Fund, reducing the amount advanced to £6,720, which is the amount of the Estimate. It is expected that some further amount of money will be realised but this further amount will be reduced by the fees and expenses of the receiver, which have not yet been paid.