Vol. 387 No. 10
asked the Minister for Finance if, in future, a company whose financial problems are related to poor management will be given advice, help and, if necessary, managers seconded to them as is being carried out at present by Fóir Teoranta, by any State agency.
98.
asked the Minister for Finance the action a company at present in financial difficulties should take as the Companies Bill, referred to by him when announcing the abolition of Fóir Teoranta, has not yet been enacted.
99.
asked the Minister for Finance the number of companies which are at present being assisted by Fóir Teoranta by way of management assistance; and the future of these companies when Fóir Teoranta cease to operate.
100.
asked the Minister for Finance whether his Department will be responsible for collecting debts due to Fóir Teoranta.
101.
asked the Minister for Finance the State agency which will be responsible for handling the accounts which are at present the responsibility of Fóir Teoranta.
102.
asked the Minister for Finance the amount of money due to Fóir Teoranta for over (i) one year, (ii) three years, (iii) five years and (iv) ten years.
103.
asked the Minister for Finance if he consulted the Board of Fóir Teoranta before announcing his decision to abolish the company.
I propose to answer Questions Nos. 97 to 103, inclusive, together.
Companies whose financial problems are related to poor management may be assisted by a number of State agencies, such as the Industrial Development Authority, SFADCo, FÁS, Córas Tráchtála Teoranta and the Irish Productivity Centre which all supply management training and advice, whether a firm is in financial difficulty or not. In addition, the Irish Management Institute, which receives substantial State assistance, also provides management consultancy services, and management training courses.
Only manufacturing companies are affected by the decision to wind-up Fóir Teoranta. Such companies experiencing financial difficulty may approach other financial institutions or seek equity finance with a view to having their financial requirements met. The business expansion scheme may be of assistance to firms in this situation. NADCorp, or the private sector venture capital companies, may also be in a position to provide equity finance to suitable firms. The Industrial Development Authority has power to provide, in the interests of promoting the restructuring of Irish industry, financial assistance where an industrial concern is being merged with or acquired by another industrial concern. There is, of course, a range of State services, which includes the provision of financial advice, for industrial firms generally.
There are 30 companies at present being assisted by Fóir Teoranta by way of management assistance. This assistance is generally of a part-time nature.
Suitable arrangements will be applied for the collection of debts due to Fóir Teoranta after the company has been wound up, and for the ongoing administration of Fóir's portfolio of loans and equity holdings. The detailed arrangements have still to be worked out. The Department of Finance will not be directly responsible for collecting debts due to Fóir Teoranta or for the administration of its portfolio.
The records of the company are not kept in such a way as to supply the information in the way sought. The amounts of money due to Fóir Teoranta were as follows on the dates indicated below:
|
Date |
Loans Outstanding |
Investment Outstanding |
Total Outstanding |
|
£m |
£m |
£m |
|
|
31/12/1987 |
37.838 |
24.629 |
62.467 |
|
31/12/1985 |
53.205 |
28.270 |
81.475 |
|
31/12/1983 |
40.431 |
21.611 |
62.042 |
|
21/12/1978 |
22.502 |
1.310 |
23.812 |
The chairman and managing director of Fóir Teoranta were informed of the Government's decision to wind-up the company on 23 February, prior to the announcement being made.
