asked the Minister for Industry and Commerce if he is aware of the heavy losses sustained by a factory (name supplied) in County Cavan following advice received from the IIRS; and if he will now take steps to safeguard the employment of the workers in the factory.
Ceisteanna—Questions. Oral Answers. - County Cavan Factory.
19.
I am not aware that any losses sustained by the factory in question can be attributed to advice received from the IIRS. As the company have, through their solicitor, served notice of their intention to institute legal proceedings against the institute in the matter, I am not in a position to comment further.
Is the Minister aware that it now appears this company will have to close down tomorrow with a loss of 20 jobs, and in the circumstances could he intervene to try, to have the problem that has arisen, caused by the IIRS, rectified at the earliest possible moment?
I do not accept the problem has arisen because of advice given by the IIRS and I am not aware the factory is closing down tomorrow.
Unfortunately I have to inform the Minister it is closing down tomorrow. I was speaking to the directors within the last 24 hours and it is closing down. Is the Minister further aware an offer was made by the IDA of an R and D grant of £7,600 to the company if they would not pursue their claim against the IIRS?
No.
I am afraid that is the position. Is the Minister aware that the IDA owe the company £5,500 in equity capital, which is the balance of the equity capital they agreed to subscribe but, because of the technical problems which arose from the incorrect advice given by the IIRS, the IDA decided not to put up the balance of the money, which is about £5,500?
I do not accept the accusations of the Deputy that the IIRS gave false information in this case. I am in a little difficulty because the solicitors to the company have said they are going to sue the IIRS and I would not like anything I have said here to influence in any way their decision in that regard or, indeed, any further legal proceedings that might come about as a result of this. I think the IDA's position would be that until the position is resolved between one semi-State company and the IIRS and the company involved it would be inappropriate that they should be dealing with that company on another basis at the same time.
Does the Minister appreciate that if there are going to be proceedings against the IIRS and if this offer they have made is renewed, and the other money is forthcoming, presumably the proceedings will not be started? But if there are proceedings they could take six to 12 months to dispose of and in the meantime the company is gone irredeemably, and this is a company with valuable contracts which has patented a new form of hydraulic saw which was highly successful until the IIRS intervened and then unfortunately severe mechanical problems arose and it is only now the company are in a position to overcome them.
I understand the product manufactured by this company was highly successful and is selling at the moment and sales are quite good.
Does the Minister appreciate there are no sales in the saw market between March and September and the company, while it can now manufacture successfully again, cannot sell and cannot therefore create any cash flow until next September? In the meantime they have to pay the wages of the workers, which they are not in a position to do, and could the Minister intervene in order to prevent the company closing down?
This is becoming a debate.
My understanding is that sales are high and quite good.
Unfortunately, they are not high.
I am told they are and I am told the company is successfully selling at the moment and I cannot therefore understand why it is closing down tomorrow night.
Will the Minister accept that I have spoken to the directors in the past 24 hours and they have told me that sales are virtually negligible at this time and they have every reason to believe that sales will be very good from September onwards——
The Deputy should ask questions designed to elicit information. He should not impart information. I am calling the next question.
That is borne out by the IDA and they hold sales at the moment are high and prospects for the company are good.
Is that not all the more reason why the Minister should try to keep the company going?
Of course.
It is going to close if it does not get some assistance.
The IDA are willing to help the company at any time.
Apparently they are not.
I am calling the next question.
In view of the unsatisfactory nature of the reply, I would like to raise this matter on the adjournment.
I will communicate with the Deputy.