andMrs. Geoghegan-Quinn asked the Minister for Finance if he will now indicate his decision regarding the future of a factory in Galway, Vecta International, Ltd., in which major redundancies are threatened this week.
Private Notice Question: - Galway Factory.
The Minister for Finance has no decision-making function in relation to the granting of assistance to firms in financial difficulties. By virtue of section 4 of the Fóir Teoranta Act, 1972, this power is vested in the board of Fóir Teoranta. Subsequent to my receiving a deputation last week about the firm referred to, I requested Fóir Teoranta, in the light of the representations made to me by the deputation, to reconsider the question of providing further financial assistance. Having reviewed the case in the light of the statutory criteria governing assistance to firms in financial difficulties, Fóir Teoranta inform me that further assistance to the firm in question would not be warranted. I understand, however, that negotiations are under way for the takeover of the firm as a going concern and that this represents the best means of ensuring its long-term viability and the job prospects of the workers.
Could I ask the Minister if he is aware that 83 persons cease employment at the factory at 2 o'clock tomorrow and that all 163 employees will have ceased employment there by 19th March? Can I ask the Minister why he has not conveyed his decision to those persons who attended on a deputation and if he will not reconsider his decision and take similar action as was taken previously in regard to the Galway Textile Printers' factory, which was maintained in operation by the then Minister for Finance, even though it was in receivership——
I want to dissuade the Deputy from making a speech.
Deputy Molloy has deliberately and wrongly said in his supplementary question that the Minister for Finance has a decision-making function in this matter. He knows well the Minister has not, because his own Government brought in the Fóir Teoranta Act in 1972, which took away from the Minister any decision-making power in these matters. It lies with the board of Fóir Teoranta and not with the Minister.
The realities of the situation are, Sir, that Fóir Teoranta, in discharge of their functions, have decided that the firm in question do not qualify for support. The reason why they have so decided is that they are not satisfied that the firm in question are capable of operating as a viable unit because of their existing liabilities. To advance money in those circumstances would mean a total loss of public money and the non-preservation of jobs. Negotiations are proceeding with an international organisation of good standing which manufactures and markets garments similar to those which have been manufactured in the factory in question and which the factory in question are quite capable of manufacturing. It is no fault of the workforce of the factory in question that they are in difficulties at present. This is recognised by those who are now negotiating for a take-over. The best way in which the future employment of the people in question can be guaranteed is by the factory being put into good hands and that matter, I am glad to say, is now proceeding in the right direction, and I think it would be unhelpful to the best interests of the workers if the matter was to be argued in the kind of way in which Deputy Molloy is trying to introduce in this House at this very delicate stage.
I should like to ask the Minister if he is aware that the workers in question consider their position at the moment very delicate and also that 83 people face the end of their employment at 2 o'clock tomorrow, some of whom have been employed for ten or 11 years in the factory? Could I ask the Minister again, as he has not replied to my original request, why he has not conveyed the decision on the outcome of his representations following the meeting he had with the deputation to those whom he met last Wednesday?
For the simple reason that the matter is not yet determined, because the negotiations for the acquisition of the firm are proceeding and are now at a delicate stage, and a debate of this kind is unhelpful to the workers or to the resolution of a very difficult problem. The people concerned are well aware of my personal anxiety and of the fact that Deputy Coogan and Senator Higgins have been actively pursuing their interests in a way which is helpful to them, and they also realise that efforts to bring on the floor of this House matters which are not the responsibility of a Minister are not conducive to the best interests of the workers concerned.
If the Minister feels that my questions have been unhelpful, what hope can he offer to the 83 people who lose their jobs tomorrow?
Those who know and those who are interested are negotiating for the acquisition of the firm as a going concern by an organisation which is in a position to provide the employment and the outlets for the garments which can be manufactured by the excellent workforce in the factory in question.