asked the Minister for Finance why, in respect of £1,006,000 employed in Taiscí Stáit Teoranta in the last financial year, no interest or dividend was paid.
Ceisteanna—Questions. Oral Answers. - Taiscí Stáit Teoranta.
30.
The primary intention behind the setting up of Taiscí Stáit Teoranta was to supplement Foras Tionscal grants to large industrial projects by making available from State sources other financial facilities, mainly in the form of loans interestfree for up to seven years and by equity investments. The Exchequer advances with which the company is financed cannot be remunerated until such time as the loans issued by the company become interest-bearing or the equity investments yield dividends.
Are we to take it that the loan made to Potez and a further loan made to a company in the midlands have not yet reached a stage of bearing interest payments and could I ask how long is it since these loans were made?
I can give the Deputy the dates of the various issues if he puts down a question to that effect.
Surely it is some years? It seems extraordinary that no interest has been charged.
Taiscí Stáit is a very special type of organisation. I think the Deputy is aware that it owes its origin to the fact that the Industrial Credit Company, which was a company expected to operate by normal commercial standards, had been asked by the Government from time to time to take on various projects which were not necessarily very remunerative or profitable. Taiscí Stáit was established to take over this type of project from the Industrial Credit Company so that the Industrial Credit Company would be left with what would be, properly speaking, commercial transactions. For that reason An Taiscí Stáit is in a special position and the advances it makes and the equity holdings which it takes up from time to time are usually of a very special nature. They are often a rescue type of operation.
Is the Minister not aware, as I am aware, that in respect of the small one—not Potez—there has been a take-over? Interest was paid some time ago, not within the past financial year as asked for in my question. Why has no interest been paid since?
On which one?
On the small one in the midlands.
Some interest was paid, actually.
Not in the past financial year. It seems wrong.
At the time this particular operation was in jeopardy and when there was a very serious question of farmers who had supplied this organisation with products being denied payment for their products, I am quite certain the Deputy would be one of the first to suggest that Taiscí Stáit should step in in this critical situation and help out.
I am merely asking now why it is that in the past financial year after a take-over by a commercial concern no interest was paid?
The simple answer is that the original enterprise was a failure and an attempted rescue operation by Taiscí Stáit was unsuccessful. The Deputy cannot have it both ways. When we have one of these organisations or companies getting into difficulties and a general demand to try to keep them going and shore them up, Taiscí Stáit steps in to do that rescue type of operation. I do not think we can come along afterwards and suggest it should make a profit on every operation of this type.
I am not saying that. I am saying that if there was a take-over in this industry and if, in fact, in the take-over Taiscí Stáit wrote off half of the £90,000 that was put into it, this would not worry me if the Exchequer came here and told us but what worries me is that this has happened and no interest has been paid.
The thing is not finalised at all yet.
They would not take our advice in the beginning. If they did, there would be far more employment there.
I have no idea what Deputy Sweetman is talking about. I was vitally concerned——
Does Deputy Sweetman want the industry closed down?
No; I wanted employment and you did your damnedest to close it down.
I was vitally concerned——
That is what the Parliamentary Secretary did, not the Minister.
I was vitally concerned at the time with the fact that there was a number of small farmers around the area who were in danger of having crops left on their hands and An Taiscí Stáit stepped in to keep this organisation going.