asked the Minister for Industry and Energy the work the National Development Corporation will undertake in 1983 with the allocation of £7 million.
Ceisteanna — Questions. Oral Answers. - National Development Corporation.
13.
The £7 million capital allocation for 1983 is intended to enable the corporation, when established, to promote new commercially viable projects in growth areas of the economy as outlined in the Programme for Government.
Could the Minister tell the House — and perhaps the Labour Party as well — what happened the £200 million which was to be earmarked for this development corporation as promised during the election campaign three months ago? It has now been reduced to £7 million and could he also say how many jobs will be promoted by such an agency with a sum of £7 million?
Consideration is being given to the statutory framework for the National Development Corporation. I should point out that State companies have their own funding arrangements in the capital budget. The NEA, the brainchild of the last Government, only succeeded in spending £82,500 in 1982 of their approved grant-in-aid of £¼ million in that year. There was no capital expenditure incurred by the NEA out of their approved grant-in-aid of £3 million. I am sure the Deputy is aware that there is a need for a statutory framework for the National Development Corporation, that it will take some time to ensure that the framework is correct and the best based one for the corporation. I assure the Deputy that no worthwhile project will not be initiated because of lack of funds during this year.
Do I understand the Minister to say that the National Development Corporation is a replacement for the Industrial Development Authority?
The Deputy is quite wrong in making that assertion. Perhaps he would take the time to read the programme of the present Government and he would see for himself that he is wrong.
There were a couple of points raised in my first supplementary question to which the Minister did not reply. I asked about the £200 million which was supposed to be earmarked by the Labour Party in Government for this. The Minister did not explain why it is only £7 million——
That seems to be a separate question, Deputy.
I do not think it is a separate question.
The Chair thinks it is.
The National Development Corporation is the subject matter of the question. When the National Development Corporation was first envisaged some months ago the figure was £200 million and now it is £7 million. With all due respects, therefore, it is a relevant question.
The Chair does not think so.
The finances required by the National Development Corporation cannot be given to them until the statutory framework is settled in this House. The Deputy can be assured that whatever finances are necessary to ensure the proper functioning of the corporation will be forthcoming from the Government.
Can the Minister say when the statutory framework will be decided upon, if legislation is required and what targets are there in relation to job creation?
I cannot say for certain when legislation will come before the House. I assure the Deputy there will be no delay in bringing the Bill before the House and consideration is being given to it. It would be very difficult to put a figure on the job potential creation of the corporation. They will work within the framework of the employment creation policies of the Government and I can assure the Deputy that the National Development Corporation will be seen to be a constructive addition to the present industrial policy of the Government.
If the Minister and the Government are serious about the National Development Corporation and getting it into operation as soon as possible——
That is an argument.
I am going to ask the question now. If they are serious about it, would the Minister not accept that there is a simple, straightforward way of getting into business straight away by setting up a company immediately to do the job of the National Development Corporation and let the statutory framework carry on? There are many precedents for this course. Will the Minister accept he can go ahead immediately?
The Deputy is incorrect. A sum of £7 million has been allocated to the corporation. I am merely talking about the statutory framework which is necessary to ensure the company get their huge capital requirements which were mentioned in the Programme for Government. The Deputy will appreciate that there is a need for a statutory framework for such an important State corporation.
May I remind the Minister that there is no need for a statutory framework——
That was the Deputy's final supplementary. We are moving to the next question.