asked the Minister for Finance whether he or Taiscí Stáit Teoranta were consulted about the change in the Board of Verolme Dockyard; if so, when; and if he will state the amount of any grant, loan or other financial investment or assistance made available by the State to that company or to any associate thereof.
Ceisteanna—Questions. Oral Answers. - Verolme Dockyard Board.
2.
On 25th June, 1968, when introducing the Estimate for his Department in this House the Minister for Industry and Commerce told the House that the Government had approved certain proposals for the reorganisation of the Cork Dockyard and that the new scheme would involve the provision of £1,390,000 from State funds, partly by subscription for ordinary shares, partly by loans and partly by grant.
It was a condition of the provision of this finance that the Board of Directors of Verolme Cork Dockyard Ltd. should be reconstituted so as to provide for representation by the State. The necessary amendment of the Company's Articles of Association has now been made, and Taiscí Stáit Teoranta which is providing the loan and share capital have recently appointed two directors to the Board, one of them as chairman. There is provision in the revised Articles for the appointment of three directors by the Dutch interests and these appointments have also, I understand, been made. Under the new arrangements Mr. Cornelis Verolme who was previously governing director of the company has the office of president. He will not be a director but may act in an advisory capacity for the company.
In addition to the sum of £1,390,000 mentioned above, of which very little has yet been paid, the following financial assistance has been given by the State to Verolme Cork Dockyard Ltd.—
|
Debenture loan issued by the Industrial Credit Company and recently taken over by Taiscí Stáit Teoranta |
£1,447,214 |
|
Grant by An Foras Tionscal |
£401,332 |
|
Shipbuilding subsidy from the Vote for the Department of Industry and Commerce up to 31st March, 1968 |
£1,176,000 |
Up to 31st March, 1968, interest to the extent of £550,000 on the debenture loan had been waived.
Does the Taoiseach remember a debate in July, 1963, when he was told as Minister for Industry and Commerce at the time that it was entirely inappropriate to have a governing director in this particular venture having regard to the State money involved?
I do not think the position would have been changed whether there had been a governing director or not because the downturn in shipping finances did not recover as quickly as expected.
Does the Taoiseach not remember that he was also told from these benches that not merely was it inappropriate to have a governing director but that it was inappropriate to have Mr. Verolme as governing director and now the Government five years afterwards have woken up and sacked him?
There is no question of sacking him. It is a reconstitution of the Board.
Call it what you like but he has been pushed out and correctly so. The only thing is that it took you five years to do it.