Vol. 287 No. 4
(Dublin Central) asked the Minister for Finance if he is aware that the contract to supply furniture for the new offices of Irish Life Assurance Co., of which he is a major shareholder, has been awarded to foreign manufacturers; and if he will make a statement on the matter.
22.
asked the Minister for Finance if he is aware that a State-sponsored body, the Irish Life Assurance Company, has placed an order for office furniture with a company (name supplied) in County Dublin which is an importing agency and imports all its furniture from English and German firms and that no Irish furniture manufacturer was asked for quotations for the required furniture; and if he will consider holding an inquiry into this matter in view of the fact that so many are unemployed and Irish furniture manufacturers could have supplied this furniture.
23.
asked the Minister for Finance if he will ensure that the Irish Life Assurance Company will place the order for the carpeting of their new building with an Irish manufacturer.
24.
asked the Minister for Finance if he will ensure that all carpets and other floor coverings to be used in the new Irish Life Assurance Building will be of Irish manufacture.
25.
asked the Minister for Finance whether the Irish Life Assurance Company considered buying English furniture in order to save £39,000 VAT; and whether they went to an Irish importing company only after this matter was raised in the Dáil.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 21 to 25, inclusive, together.
The first occasion on which the matter of the supply of office furniture to Irish Life came to my notice was on 20th October, 1975, when representations were made by Deputy Pat Joe Reynolds to me on behalf of a County Leitrim firm of office and contract furniture manufacturers.
On receipt of these representations extensive verbal inquiries were made by my Department of Irish Life, the IDA and Fóir Teo. My Department were informed that consultants had been engaged, that there were technical problems but that the matter was by no means settled. The company were made aware of my anxiety that everything possible should be done to place the contract in this country. The company's spokesman intimated that they were anxious to buy Irish and said the consultants had discussed the matter at length with the Industrial Development Authority. The company were asked to keep me informed.
On 17th and 20th November representations were made by the Minister for Labour and the general secretary of the Irish Transport and General Workers Union. A letter was sent by my Department to the company on 21st November and further verbal representations were made. The company's reply, received on 2nd December, said the matter was still under consideration and no order had been placed. In supplementary discussions my Department again stressed the importance of buying Irish and inquired if appropriate bodies, such as the IIRS, had been consulted with a view to enabling Irish firms to overcome technical or other difficulties. The company's spokesman gave an assurance that such steps had been taken and said that the placing of the contract was receiving very careful consideration.
On 11th December, in view of the gravity of the situation and notwithstanding the company's reply of 2nd December, another letter was sent on my instructions by the secretary of the Department of Finance to the managing director pointing out that there seemed to be widespread concern that the business might be placed abroad and asking that I be kept informed of developments. On 18th December the Department received a letter, bearing the date 15th December, from the company. Verbal inquiries by my Department on my instructions elicited the information that, although the letter contained the statement "we are in favour of accepting the recommendation of our consultants...", the contract had been placed irrevocably on the same date, namely 18th December, as the Irish Life letter had been received in my Department.
On 5th January the company were informed by my Department of the Government's intense disappointment that they had failed to make the necessary modifications in standards and arrangements with Irish manufacturers to ensure the manufacture of the furniture in Ireland.
Senior officers of my Department and I have on a number of occasions since had discussions with the chairman, managing director and property investment manager of the company. I have been furnished with copies of documentation relevant to the issue, which I have placed before the Government. Government inquiries into the matter are still proceeding.
In the meantime the company themselves, as the House will be aware, announced on 26th January that they were investigating urgently the feasibility of having the furniture in question manufactured in this country under licence. Discussions have taken place between the company and the Irish Congress of Trade Unions and a meeting has also been held with the Confederation of Irish Industry.
The contract does not concern carpets, which are referred to in two of the questions. I understand that it is the company's intention that these items should be purchased from Irish manufacturers.
As regards value-added tax, I wish to point out that imported furniture is liable at the same rate as furniture manufactured in the State.
At all times the best interests of Irish workers and industry, the company and their policyholders have been and will remain my primary concern.
(Dublin Central): Is the Parliamentary Secretary aware that the majority of furniture manufacturers in this country failed to obtain a specification or a tender form long before 9th January? I am told that has been brought to the attention of the Minister.
A number of companies were asked to quote. A detailed examination was made of the Irish furniture industry. I understand 33 firms were approached, of whom 20 are still manufacturing. Only three firms, including five firms in a consortium, produced total ranges of office furniture. These three were invited to tender. One declined and samples of the products of the other two firms were submitted.
Will the Parliamentary Secretary give the names of the two firms who submitted tenders?
I do not know if I have that information.
Will the Parliamentary Secretary tell the House how many firms had the courtesy to reply to the tender of Irish Life?
In view of the deplorable situation that has arisen in connection with this furniture and with regard to other matters in connection with the company, does the Parliamentary Secretary consider it was wise of the Minister to leave Irish Life out of the list of semi-State companies and organisations that will be investigated by the Oireachtas Committee which it is intended to set up? Was there any particular reason why Irish Life were singled out for special treatment in being left out of the list of State organisations that will be investigated by the Oireachtas Committee?
That would seem to be another matter.
It is very relevant to this kind of situation.
It is deserving of a separate question.
Will the Parliamentary Secretary indicate why Irish Life were not included in the list of State organisations being investigated?
I suggest to the Deputy that he put a specific question to the Minister.
I thought the Parliamentary Secretary was standing in for the Minister.
I am still waiting for a reply to my supplementary question.
I have not that information with me. I would point out that it is the practice——
Surely the most relevant point is the names of the two Irish firms who were competent to submit tenders?
It is not the practice of the House to disclose the names of companies who submit tenders.
Will the Parliamentary Secretary state when these two firms were informed of the final conclusions of Irish Life and the foreign contractors?
I am sure they must have guessed it when they were not informed they had the contract.
There appears to be a lot of guesswork——
The Parliamentary Secretary mentioned that 20 firms referred to were still in the business of manufacturing furniture. I do not expect him to have this information now but, as a matter of urgency, would he circulate to every Deputy the names of those firms, stating when they were contacted by Irish Life, whether by letter or telephone and what sort of inquiry was made?
Yes, I will do that.
It will be very interesting.
(Dublin Central): Is the Parliamentary Secretary aware that when I raised this matter in the Dáil on 11th December it was general knowledge among the furniture manufacturers that the contract has gone abroad? It is my information that that knowledge was available to the Minister at that time. Further, the contract was not signed until 18th December——
The Deputy is engaging in a speech rather than asking a question.
I should like to reply to the Deputy's question which is a fair one. On 10th December the company were asked by the Minister to keep him fully informed of what was going on. He was led to believe that the matter was under consideration and that no decision had been taken. The Minister has made his views known. Had he been informed, as he requested, of the real position he would have acted and put the Government's view beyond doubt.
Deputy Lemass.
(Dublin Central): Are we to take it——
I have called Deputy Lemass.
(Dublin Central): I am sorry. We have tried——
Do not try to get him off the hook.
Order. Deputy Lemass has offered on two occasions and I am calling him.
Will the Parliamentary Secretary state if the furniture design workshop and the central engineering workshops under his control at Inchicore were asked to design suitable furniture for this building?
I agree with the Deputy that manufacturers here can produce furniture of high quality.
Those workshops are under the control of the Minister and they were set up for the purpose of designing furniture.
We were told that owing to the specifications of the furniture in this case Irish manufacturers could not have designed it.
Could it not have been done at Inchicore? Of course it could.
(Dublin Central): I should like the Parliamentary Secretary to be more specific with regard to the representations made to Irish Life between the date I raised the matter here and the date on which the contract was signed. It was generally known the contract was going abroad——
The Deputy has already said that. Does he wish to put a question?
Deputy Pat Joe Reynolds raised this matter on 21st October. He was two months ahead of anyone else. The Minister for Finance as well as the Minister for Industry and Commerce made several representations to Irish Life. There is no point in saying that the Government stood idly by on this issue. They did not. When there was an approach made to Irish Life on 10th December they were led to believe that no action had been taken.
Deputy MacSharry.
(Dublin Central): Will the Parliamentary Secretary——
Will the Deputy please obey the Chair? I have called Deputy MacSharry. I am seeking to be fair to all Members. I would advise the House that there is a motion down in respect of this matter and the House will have a further opportunity of discussing it. I am allowing a final supplementary question to Deputy MacSharry.
I will give way to Deputy Fitzpatrick.
(Dublin Central): I understand this contract was signed on 18th December. I am told that the Department of Finance were informed on January 5th. Until the time I raised it with the national newspapers there was no word from the Government that this contract was going abroad.
I would advise Deputy Fitzpatrick not to be putting a halo around his head on this issue. It was before the Dáil on 21st October.
(Dublin Central): Is the Parliamentary Secretary saying that Irish Life misinformed the Government with regard to the developments in this contract?
They did not keep the Government fully informed of the developments that were going on.
Deputy MacSharry, a very brief question.
Could the Parliamentary Secretary state, in view of the investigations and discussions the Minister has had with the Institute for Industrial Research and Standards and Irish Life if he and the Government are now satisfied that there were competent Irish manufacturers to fulfil this contract?
I am satisfied that, if the investigations were modified, that there were good manufacturers in this country who could build beautiful furniture.
The remaining questions will appear on tomorrow's Order Paper. I am sorry, Deputy Fitzpatrick, I have given lots of latitude.
(Dublin Central): Can the Parliamentary Secretary give any undertaking that this contract will be placed with Irish manufacturers?
The remaining questions will appear on tomorrow's Order Paper.
