asked the Minister for Industry, Trade, Commerce and Tourism if, in view of a report in the media (details supplied) concerning the future of a firm (details supplied) in County Donegal and the 400 jobs in that factory which could be in jeopardy because of possible EEC opposition to State aid being granted to modernise machinery proposed by an American company as part of a take-over, and because of a general disquiet about the entire matter and the dire economic consequences for Donegal, he will make a statement on the matter.
Written Answers. - Future of Donegal Firm.
196.
As the Deputy is, no doubt, aware, the interests which have taken over, as a going concern, the plant in question also plan to undertake with State aid, an investment programme aimed at securing the present levels of employment there. In accordance with the existing EEC rules governing the granting of aid to firms in the synthetic fibres sector, the European Commission has been notified of the intention to provide State aid for this investment programme.
In that connection, I had a discussion in Brussels on 28 February 1984 with the member of the Commission directly responsible for competition policy. I stressed the very strong regional and industrial factors underlying the proposed State aid for the plant. I also emphasised the need for an early and favourable response by the Commission.
I am satisfied that our concerns will be taken fully into account by the Commission in its examination of the matter.