asked the Minister for Industry and Commerce if he will confirm a report appearing in the Canadian newspaper (details supplied) that the Irish Government had guaranteed a loan of 12 million dollars given by an Irish bank to finance a high technology farm project in British Columbia in Canada; the reasons such guarantee was given; if the Government carried out any investigation into the viability of the project before any such guarantee was given; and if he will make a statement on the matter.
Written Answers. - Government Guarantee to Canadian Project.
39.
Limerick East): An Irish company has won a contract for the erection, equipping and commissioning of an experimental farm technology centre in British Columbia, Canada. The value of the contract is $16 million Can. and the company sought assistance under the export credit insurance and related finance schemes in support of this export order. Following examination of the application by ICI which operates the export credit insurance and finance schemes on my behalf it was decided to provide insurance cover for up to $12 million Can. plus interest together with a guarantee in relation to the provision of finance.
The purpose of the export credit insurance scheme is to assist and encourage exporters by providing them with protection against non-payment by foreign buyers and to help maintain the competitiveness of Irish exports by providing access to relevant export credit finance schemes.
There is no Irish State subsidy involved in relation to the guarantee of finance in this case.