asked the Minister for Industry and Commerce if he will state in respect of the periods 1st December, 1969, to 31st March, 1970, and 1st December, 1970, to 24th March, 1971, the number of limited companies which have served notice of intention to go into liquidation.
Ceisteanna—Questions. Oral Answers. - Liquidation Notices.
40.
The number of limited companies which served notice of intention to go into liquidation was 29 in the period 1st December, 1969, to 31st March, 1970, and 57 in the period 1st December, 1970, to 24th March, 1971.
Would the Minister not agree that this startling increase is a direct result of the repressive measures being applied by the banks following their closure and the lack of facilities for the best part of the last year, and would the Minister indicate if he can do anything to ensure that the banks, from this point forward, will not continue to apply these harsh restrictions on their customers and cause further liquidations? Apart from the liquidations there has been a startling increase in the number of bankruptcies also due to the banks' action.
I would not agree with that. As the Deputy knows, a number of liquidations take place which have nothing to do with insolvency or even trading difficulties and they are included in the figures which I have given. In respect of the first period for which I gave figures the percentage of liquidations in relation to the number of companies on the register was 0.14 per cent. In respect of the second period, it was 0.25 per cent. That means that during the bank closure a number of liquidations which would have taken place in the ordinary course of events—and bankruptcies also— were deferred because of the bank closure. What would have taken place during that period has all come together.
If a company were in a situation where it had to go into liquidation it could not defer it until the banks opened. It would have to serve official notice.
I am afraid that many companies which should have done so did not do so.