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Dáil Éireann debate -
Tuesday, 25 Nov 1986

Vol. 370 No. 2

Written Answers. - IDA and SFADCo Grants Procedures.

34.

asked the Minister for Industry and Commerce if he will outline the circumstances in which a Limerick company (details supplied) was approved for State grants totalling £285,000 and was actually paid £212,000, when it went into liquidation after about one year in operation leaving a deficit on a statement of affairs of £630,000 (including £90,000 unpaid PAYE and PRSI); if he is satisfied that the vetting procedures applied by the IDA and SFADCo for grant-aid are adequate; and if he will make a statement on the present policy of his Department and of the IDA and SFADCo in this regard.

Limerick East): Following a feasibility study the company applied in 1984 to SFADCo for grants to enable it to manufacture a range of furniture mainly for export. SFADCo, following examination of the company's proposals, approved the grants indicated in the Deputy's question. In accordance with the grant agreements payments amounting to £212,581 were subsequently made on foot of vouched claims submitted. Such claims are in all cases subjected to detailed examination by SFADCo.

I am satisfied that the vetting procedures of the IDA and SFADCo are adequate. In this regard, the policy of my Department, of the IDA and of SFADCo is to ensure that applications for grant assistance are fully examined, that applicant industries obtain appropriate advice and assistance from the State agencies and that grant money are disbursed and accounted for in proper form.

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