asked the Minister for Finance if funds were extended by a State-sponsored company to a manufacturing company (details supplied) (a) during the last six months and (b) since 1st July, 1977; if so, the amount; and what conditions were laid down, if any, to the extension of these funds.
Ceisteanna—Questions. Oral Answers. - Funds Extension.
31.
The State-sponsored body in question did not provide funds directly to the firm referred to by the Deputy but provided sums totalling £1,215,000 during the past six months—of which £1,095,000 was provided since 1st July last—to the group of which the firm in question is part. I understand that a substantial part of the assistance was intended to be devoted to helping the firm in question to continue in operation.
The first moiety of the assistance, namely £450,000, approved in July last was subject to concessionary terms in relation to payment of interest and repayment of principal and the remainder of the funds was advanced on a short-term basis pending the submission by the group of their proposals for restructuring the group and its management.
Is the Minister stating that £1,095,000 was provided to this group of companies and that a large portion of that was to have been applied to Castleguard Textiles, Ardee, to keep it in operation?
A sum of £450,000.
Now there is a final closure by this company with a loss of 208 jobs.
That is so.
What is the Minister going to do about it?
The position with regard to this group is being examined in greater detail at the moment. I am sure the Deputy is aware—because of the location of the firm in question and the fact that he was a member of the former Government—that while this problem has become very acute recently it did not arise overnight.
I am aware it did not arise overnight but I want to know what undertakings were given by the group of companies who received £1,095,000, of which £450,000 was directly for Castleguard Textiles? Further, how is it that now there is a final closure of that company? I have gone to Castleguard and they have informed me that there is a final closure.
I understand that there is a final closure. As far as I am concerned it is a totally unsatisfactory position but there is no action open to the Government that would prevent it. As I have indicated, in July we approved a payment of £450,000 in an effort to avert this result and were informed at the time that it would have this effect. However, it did not have such effect and I regard the whole position as thoroughly unsatisfactory. There is a major and urgent examination going on at the moment into the whole position of the group in question.
In connection with the urgent examination now going on, has the Minister any hope to offer the workers in Castleguard Textiles that they may get their jobs back?
I cannot hold out any such hope to them but I think it will be clear to them that we approved payment of £450,000 in an effort to keep the factory open. They will see that we tried.
Trying was not good enough.