asked the Minister for Industry and Commerce whether he is satisfied that, in the increasing number of take-overs of industrial and commercial concerns by financial trusts, there has been adequate consultation with the representatives of the workers concerned and that such take-overs are in the long-term interest of the economy.
Ceisteanna—Questions. Oral Answers. - Industrial and Commercial Take-Overs.
111.
I take the view that, where a concern is to be taken over, it is desirable that there should be adequate prior communication with representatives of the workers involved but there is no requirement compelling such communication and I do not know whether it has taken place in particular cases.
As regards the long-term interest of the economy, I am having legislation prepared which will enable me to prohibit mergers or take-overs which are likely to restrict competition and I have also been considering whether it is feasible to provide for control on other grounds.
Would it be possible for the Minister to bring in legislation whereby when a firm are taken over there could be some guarantee for the staff working for that firm? When a firm take over a business, changes occur and the staff are sometimes not taken over.
This point is being considered in the legislation which is being prepared. It is extremely difficult to make arrangements of that nature.
112.
asked the Minister for Industry and Commerce if he is satisfied that, in the case of take-overs of established industrial and commercial enterprises by financial trusts, the personnel of such trusts are competent to manage the businesses in question on a long-term basis.
It is a matter for the responsible interests in any take-over to ensure that the new management are competent to manage the business on a long-term basis. I may say that experience has shown no reason to fear that, in general, new managements installed after take-overs are any less competent than those they may replace.
113.
asked the Minister for Industry and Commerce if he proposes to include in the proposed legislation in relation to mergers and take-overs provision for consultation with the trade unions in question prior to the completion of any transaction.
While I would take the view, as I said in reply to a question by the Deputy earlier, that where a concern is to be taken over it is desirable that there should be adequate communication with representatives of the workers involved, the extent to which that could or should be made a statutory requirement is something to which I would have to give further consideration in other contexts.
Is the Minister aware that there seems to be a developing practice in relation to finance trusts particularly where, following a take-over, the assets and the reserves of a company are realised and generally "milked" and they close down even a viable company and proceed to make their cool £500,000 in the process? Would the Minister regard such an event, as that which happened on the London market and in two instances to-date on the Irish market, as not being in the national interest? Would he consider such developments are in urgent need of being statutorily prevented? May we take the implications of Questions Nos. 112 and 113 together?
I understand that the Deputy wishes me to refer back to Question No. 112.
Questions Nos. 112 and 113 follow through.
The point in relation to Question No. 112 is that it referred to the management that would follow a take-over. The legislation dealing with mergers and take-overs which is in course of preparation will, because of the far-reaching consequence of mergers and take-overs and because of the problems which arise, take some time to complete. The reason for this is because we are endeavouring to incorporate in the legislation all the factors to which reference has been made.
Would the Minister not agree——
The time for Questions is limited and we are trying to get through these Questions.
The prospects of employment of many of the workers concerned in such companies are equally limited. There are some very sophisticated and sharp accountants in financial trust companies and in anticipation of the legislation they have at the moment an "open field" in which to proceed with the milking of the situation in the strict financial sense. They can leave in their wake redundant workers and closed viable companies.
The Deputy is, as usual, making a long speech. This is Question Time.
It is only 4 p.m.
(Interruptions.)
The Deputy was not here earlier but arrived for Question No. 113 and is trying to ask supplementaries on Nos. 112 and 113 together.
(Interruptions.)
Will the Minister give me a reply.
I have no indication that there is the widespread problem to which the Deputy refers.
Questions Nos. 114 and 115 postponed.