I propose to take Questions Nos. 21 and 50 together.
I would refer the Deputies to the statement I issued to this House on 25 April 1989. As I made clear in that statement, the main reasons for the Government decision to wind up the activities of Fóir Teoranta were as follows: (i) the low level of demand for Fóir Teoranta's services over the recent past; (ii) the very much changed industrial environment now as a result of the firm action taken by this Government, as compared with when Fóir Teoranta were established; (iii) the soon to be enacted provision in the latest Companies Bill allowing for the appointment by the courts of an examiner in order to prevent potentially viable companies from going into immediate liquidation; and (iv) the Government are devoting major resources to the establishment and expansion of industrial firms and to making them more cost competitive as our whole economy prepares for the internal market in 1992.
The alternative mechanism for dealing with rescue situations where long term sustainable employment is involved will thus be the new procedure in the Companies (No. 2) Bill, 1987, modelled on the US "Chapter 11" procedure. This procedure will apply to all companies, not just those in the industrial and allied sphere as in the case of Fóir Teoranta. There are, of course, other Government agencies involved in the provision of finance for industrial concerns, namely IDA, SFADCo, Údarás na Gaeltachta, NADCorp and ICC. The business expansion scheme is also of considerable assistance for the provision of equity finance for viable firms.
The available directors of the company were informed of the position on 22 February. Two of the directors who were not available on that day were informed on the following day.
As regards companies owing money to Fóir Teoranta, the position is that Fóir Teoranta took a decision in 1982 not to publish details of client firms as this might damage the credit standing of such firms. That is still Fóir Teoranta policy and it would not therefore be appropriate for me to give details in respect of these companies.
As regards the arrangements which will be made to collect moneys outstanding, as I said in my statement of 25 April, alternative arrangements for the administration within the public sector of Fóir Teoranta's existing portfolio of loans and equity holdings will be made by the end of the winding-up period so as to ensure that the Exchequer investment in the firms in question is protected.
As regards the arrangements to deal with negotiations in hand with applicant companies in respect of which application to Fóir Teoranta for assistance prior to 23 February was made but where a final decision has not yet been taken, such cases will be dealt with by the company on their merits and subject to the normal criteria which are laid out in statute.
As regards the powers of Fóir Teoranta, these have not been suspended; they will continue to be exercised by the company during the winding down period in relation to those cases where applications for assistance were received prior to 23 February 1989.