asked the Minister for Industry and Commerce the number of people employed in the factories established in the Longford area at a cost of more than £1.5 million as listed recently in a newspaper (details supplied); and the number of these factories in difficulty at present.
Ceisteanna—Questions. Oral Answers. - Longford Factories.
39.
The newspaper in question listed 16 firms which received grants from the Industrial Development Authority under both the new industry and small industry grant schemes. These firms, to whom to date a total of £1.36 million has been paid, employ between them 600 workers. As has been announced, a receiver has been appointed in the case of one of these firms.
Will the Minister state the amount of grant given to the company? Was it nearly £250,000? I have had this question down for so long that I cannot remember all the details.
If the Deputy would wait to hear the reply to the next question he will get that information.
40.
asked the Minister for Industry and Commerce the amount of the IDA grant and any other State grant paid to a firm (name supplied) in Longford; and the future prospects for this firm.
Of grants totalling £264,960 approved by the Industrial Development Authority in respect of the firm named by the Deputy, £261,960 has been paid to date.
The firm are now in receivership and their future prospects depend on whether the receiver's efforts to dispose of the firm as a going concern are successful. I am advised that the receiver has arranged for discussions with a number of interested parties.
Would the Minister like to make a statement on the reason this industry has failed and why more than £250,000 should have been given to this firm by way of grants? Can the Minister state the criteria that were employed in this instance?
When the IDA allocated a grant to this firm they were pretty well satisfied it would be a viable industry. When one talks about the grants that have been allocated in any instance one must be mindful of the fact that the grant in question is a certain percentage of the total money invested and that almost invariably the promoter will have invested more money than the amount of grant.
Can the Minister state the amount contributed by the owner?
A sum of £264,960——
We are told that £261,960 has been paid to date so that we saved £3,000. Can the Minister state what proportion was contributed by the owner?
I have not that figure.
Did the Minister not inquire from the IDA?
Did the Minister not make inquiries why the grant was paid?
There is a lot of criticism of the Minister for interfering with a State-sponsored body and there is criticism also that he does not interfere enough.
The Minister is obliged to give us details.
Is the Minister aware that the management of this firm say their prospects are good and that they are only in temporary difficulties, that they have been refused aid by Fóir Teoranta who were designed to come to the assistance of such firms? In view of the employment content in Longford this is a serious matter. Would the Minister direct Fóir Teoranta to come to the assistance of this firm?
I should like to inform the Deputy I am not in a position to direct Fóir Teoranta as they are a body under the jurisdiction of the Minister for Finance.
Would the Minister use his good offices?
The Minister could give a hint.
Is the Deputy now suggesting that the State invest more money?
I asked the Minister a question and I should like to hear his answer.
I am anxious that nothing would be said in this House that would militate against the possibility of this industry being revived and maintained. My information in relation to Fóir Teoranta is that they will not advance any further moneys unless they are satisfied there is a prospect of the operation being viable. Nobody can criticise them for this.
The management of the firm concerned say that it is viable and that they are only in temporary difficulties. That would seem to be borne out by the fact that the receiver is endeavouring to sell the industry as a going concern. If it is not viable how can the receiver look for a customer?
I am not saying Fóir Teoranta have contended it is a nonviable concern.
Fóir Teoranta were set up by the State specifically to help in cases like this. Why will they not come to the rescue of this industry which is in temporary difficulties?
I am not in a position to answer for Fóir Teoranta.
Shall I ask the Minister for Finance?
I am merely saying I am not in a position to answer for Fóir Teoranta in this regard.
As the Minister is in charge of Industry and Commerce I would have expected that where jobs are concerned he would have taken steps to know Fóir Teoranta's attitude in regard to this matter.
I am interested in this but I am not in a position to indicate to the House the attitude of Fóir Teoranta.
The Minister should be.
Is the Minister saying that a company in receivership are likely to come to life again? Is that the experience in business?
The Deputy is talking about likelihood. I have not made any statement as to the likelihood or otherwise of this, but I certainly do not want to make a statement which would militate against their coming alive again.
The appointment of the receiver in this case may have been premature.
That is possible but I am trying to ascertain what percentage of companies that are put into receivership survive.
It has happened.