asked the Minister for Industry and Commerce the number of firms closed down in the period 1st October, 1974, to 30th September, 1975; and the number of job losses as a result of such closures.
Ceisteanna—Questions. Oral Answers. - Firm Closures.
22.
There is no obligation on firms to notify my Department of closing down. The information at my disposal relates only to firms in the manufacturing sectors of industry the closing down of which has come to the notice of the Industrial Development Authority or of the Department. In the period 1st October, 1974, to 30th September, 1975, a total of 78 firms have come to notice as having closed down with the loss of 4,178 jobs.
23.
asked the Minister for Industry and Commerce if he will make an up-to-date statement on the present position of a firm (name supplied) in Portlaoise, County Laois.
I have been informed by the Industrial Development Authority that the receiver for this company is endeavouring to sell the business as a going concern and that a number of firms have expressed an interest in it.
I understand that one company has made an offer for the assets and that three other firms have also expressed an interest.
The Minister mentioned that the receiver had received one offer for the assets. Might that not mean a sell-out of the equipment within the building, and that there would be no prospect of reopening unless the IDA attracted an alternative industrialist to the site?
I do not accept that inference. I said that the effort of the receiver is to sell the business as a going concern.
Did the Minister not say that the receiver had received one offer for the assets. I do not want to make an inference; I am simply trying to get further information. If the receiver were in a position to accept that offer, would the Minister be satisfied that there is a likelihood that the factory would be reopened as a going concern?
It would be vastly preferable if the factory could continue as a going concern in the area in which it was engaged.
We all know that.
It is, therefore, the endeavour of the receiver to sell it as a going concern. Of the firms before me, at least two are concerned in precisely that area of economic activity.
24.
asked the Minister for Industry and Commerce if an old-established craft industry (details supplied) in County Donegal is to be allowed to close down for want of State assistance.
I am informed that the firm, to which the Deputy refers, has recently sought assistance from both the Industrial Development Authority and from Fóir Teoranta.
I understand that whilst it was not found possible for the board of Fóir Teoranta to accede to the company's request for loan assistance, the IDA are at present considering the company's application for a training grant. It must be appreciated, however, that the extent to which the State agencies can provide assistance towards maintaining the firm in business is dependent on whether it can be demonstrated that the undertaking is capable of paying its way in the long term.
The Minister will agree that this is an unusually prestigious industry. Originally I named the industry in my question and I cannot understand why it was not mentioned. I am referring of course to Donegal Carpets. This industry has been established for over a century and has earned a very high reputation. Would the Minister not consider that because of the specialised nature of this craft that special consideration should be given? This is a traditional industry in this area where workers are specially trained. A training grant is not most important in this case; working capital is needed to enable the industry to overcome a period of recession.
The Deputy will, I think, agree with me that we would not wish to say anything from either side of the house which would in any way damage the prospects of this firm. I share his opinion that there is a special tradition and prestige attached to this firm and I would very much deplore its going out of production. The Deputy knows that State agencies are bound by law. He knows also the decision of the board of Fóir Teoranta, which I have indicated. I have made it clear, and I understand that the attitude of the board of Fóir Teoranta and the IDA is as sympathetic as they can be within the proper statutory limitations set on them by their establishing Acts. I would reiterate here that it is our wish that this firm should continue in production but we cannot bend beyond a certain point the ordinary rules of commercial viability.
Will the Minister agree that this industry is liable to close down and that it will be looked on as a serious blow to our export potential and to our export efforts generally? This is one industry which has been supplying carpets to practically every worth-while establishment in the world, including many of the royal palaces.
The Deputy is aware that there are very real difficulties of viability and that current production is on a very small scale.