asked the Minister for Industry and Commerce if he will state in respect of Galway Textile Printers, since it was established, the total sum advanced by way of grant by An Foras Tionscal.
Ceisteanna—Questions. Oral Answers. - Galway Textile Printers.
44.
Grants amounting to £516,000 have been paid by An Foras Tionscal to Galway Textile Printers.
In view of the very heavy total commitments by the State in this case—I have no doubt the Minister is aware of the grave public disquiet over the whole question—will he consider holding a public inquiry into the affairs of Galway Textile Printers?
No; I do not think that is necessary.
Surely it is a serious situation if within less than ten years, a sum of £1,600,000 is advanced by the Industrial Credit Company and £500,000 by way of loan by An Foras Tionscal and we have the recent announcement indicating that a receiver has been appointed? Does it not suggest that because of this heavy loss of public funds something more than the appointment of a receiver is called for and that a public inquiry would allay public disquiet about these losses?
The Deputy will appreciate there is a certain division of responsibility here. The operations of the Industrial Credit Company are not under the aegis of my Department; those of An Foras Tionscal are. I do not think a public inquiry is called for, but the Deputy will appreciate that, if further information is required by the House in regard to the operations of this company and why it is thought to have failed, this information can be ascertained by way of Parliamentary Question.
Does the Minister agree, or does he know, that pressures were brought to bear on certain companies by An Foras Tionscal and the Industrial Credit Company to invest money in this project? In fact, these companies have lost this money and some of them are not at the moment in as good a financial position as they were then. This is a very serious matter. Obviously, Government policy in regard to this section of the industry was incorrect and, in fact, improper in its application. As a result, there has been a grave and serious loss to the taxpayer and to the trade as well.
I am not aware that the position is as stated by the Deputy. To the best of my knowledge, the total equity holding in this company for some years has been in the possession of the Industrial Credit Company.
Is the Minister not aware that this company was set up by his predecessor forcing—and I use the word "forcing" deliberately—those concerned to go into it in a way which they, with their knowledge of the trade, told the then Minister for Industry and Commerce, Deputy Lemass, it was quite impossible to operate, that by reason of pressurising by licence issue, he forced those people to go into it and now it has lost £2 million of the taxpayers' money?
No; I am not so aware at all.
Then I suggest the Minister look back on his files.
Furthermore, I might point out that the main reason—there were a number of reasons—this company has reached the stage it has reached is that it was geared to a very large production of material which it cannot now supply by reason of restrictions imposed in Britain. This was not something which any of the people who may have expressed views on the viability of this company in the past could have anticipated. In fact, but for this restriction, this company would be operating as an economically viable unit.
Is it not a fact that everybody concerned said it would not work, except Deputy Lemass, the then Minister for Industry and Commerce?
They did not say it for the reason that it ran into difficulty.
It was a flop from the beginning.
People were encouraged to go into employment there without any firm hopes.
Does the Minister think there were low standards in high places? Was that what he was referring to when speaking in Galway?
Does the Deputy really want me to tell him what I was referring to?
Yes, some of your own Party members.
The Leas-Cheann Comhairle might not permit it now, but I will have an opportunity later to tell the Deputy.
Further arising from the Minister's reply——
I have already allowed seven supplementaries on this question.
£2 million is a lot of money.
We cannot have a debate on this.
I think it would be a very good thing to have one.
In view of the fact that responsible members of the Opposition have now informed the Minister that persons in this trade have informed them that it was under pressure from his predecessor, Deputy Lemass, and from the people under his control they were made invest money which they have now lost, Deputy Cosgrave's request for a public inquiry is something that must surely be seriously considered by him and should not be thrown out by saying we can get the answer by way of Parliamentary Question.
The Deputy's supplementary question seems to imply that private firms have now lost money they invested in this. This, to the best of my knowledge, is not true. If they did lose money, they lost it some years ago, not now.
They lost it, and you kept bolstering it up with more money.
Let us be clear on what transpired. The Deputy's question implies they have lost money now.
No.
I said earlier that the total capital in this company was under the control of the Industrial Credit Company. What happened some years ago when the Industrial Credit Company took over is another matter. I did point out to the Deputy that the question which I was asked related to the total sum advanced by way of grant by An Foras Tionscal and that he is getting on to a very different matter. I said the Deputy was entitled to get the kind of information he is seeking by way of Parliamentary Question. I suggest it is unreasonable to go that far from the original question.
While I can appreciate the divided responsibility— we can understand the Minister's difficulty in answering questions, only part of which apply to his Department—the fact is that the total loss has to be met by the taxpayer to the extent that both the Industrial Credit Company and An Foras Tionscal are financed by public money. That is why I suggested a satisfactory investigation of this could only be secured by public inquiry.
It is a mistake to assume at this stage that the total money put in by way of loan or grant has been lost.
I suppose something will be salvaged.
Very little will be salvaged.