Vol. 215 No. 8
(South Tipperary) asked the Minister for Industry and Commerce if he will make a statement concerning the GEC factory at Dundalk, giving the paid up capital and the amount of State grants or loans, the cause of the present redundancy, what remedial proposals he has to offer, and whether the associated company at Dunleer, County Louth, was or is the recipient of State grants or loans.
39.
asked the Minister for Industry and Commerce if he is aware of the anxiety now existing following the closure of the GEC factory, Dundalk; if he will make a statement on the closure of this factory; and what State loans or grants have been (a) sanctioned and (b) paid to this company.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 38 and 39 together.
The proposal by the General Electric Company to erect a factory at Dundalk for the production of small electrical appliances held out prospects of viability, substantial exports to Britain, and worthwhile employment. After the factory went into production the conditions on overseas markets changed appreciably, mainly owing to over-production in England, and the company decided that the Dundalk operations had become uneconomic. I am satisfied that the decision by the company to cease operations received the most careful consideration and examination. I have impressed on the company the necessity to keep redundancies to the absolute minimum. The Deputy will appreciate that there are no other remedial measures open to me.
Information about a company's paid-up capital is available from the Companies Office.
It is not the practice to give information about the amount of Foras Tionscal grants until the annual Report is made available but, in view of the exceptional circumstances. I am prepared to give the information in the present case. The amount of State grants paid is £341,000; there are no State Loans.
There is not an associated company at Dunleer; the two factories belonged to the one company. The grant of £341,000 was made towards the cost of the new factory buildings at Dundalk, the plant and machinery at Dundalk, and certain items of plant and machinery installed at Dunleer.
Will the Minister say when his Department had the first intimation that this firm was in trouble?
I have not a date but it was during the past month or so I became aware of it.
Were there any consultations between his Department, Foras Tionscal and these people?
There were.
How long ago?
They had been going on up to quite recently, until a final decision was taken.
Would the Minister agree that it is pretty frightening that a firm which received a grant of £341,000 and was established for about a year could suddenly fold up?
This is a frightening thing, but, as the Deputy knows, it is a reputable firm who invested a good deal of their own capital to back up their confidence in the market and it was after a very thorough examination of the prospects that it would be viable and give employment and would be worth supporting from that point of view. I imagine the only possible way to avoid disappointment of this kind is not to have any attempt to industrialise the country. Every possible——
That is not——
It was of course the market which failed.
Would the Minister not agree, if it has not been done up to this, that some section of his Department should keep a friendly eye on firms such as this which received such substantial grants?
The implication is that something happened within the firm; I am quite satisfied that it was because the market changed and because of overproduction for the market.
Was the market there at all?
It was.
According to some reports, it was not.
I do not think we should base this on rumours and reports.
Apparently the money was given on rumours and reports.
No, it was not.
Have we any hope that in other lines, apart from the small goods lines to which the Minister referred, the Minister will hold an investigation?
This investigation is taking place.
As soon as the Minister has any information that would help Deputies, will he inform the House?
The investigation is going on and of course there is the assurance of the absorption of a certain number of workers.
I am well aware of that.
Could the Minister give an indication of the percentage of the total cost of the buildings and plant which the £341,000 represented? In other words, what percentage grant was given?
I have not got that as a percentage.
(South Tipperary): Before a substantial grant of that nature is given, what market research is undertaken by Foras Tionscal?
This is what the organisation is for, to carry out a very thorough investigation of every proposal. I do not think anybody could have predicted overproduction in Britain affecting the market coupled with the drop in the market arising from smaller demand.
Did the Minister say that the investigation into the closing down of the factory was going on or whether it was to be undertaken?
This is a disappointing but inevitable feature in a country which is industrialising. We have learned something from it.
If the Minister cannot give the percentage, can he give the amount of money which the factory itself put into this building and plant? I am sure he has that in his brief although it may not be worked out as a percentage.
This sort of witchhunt does not do any good.
It is not intended to.
I cannot give the Deputy that information now.
