Vol. 405 No. 6
19 Mr. J. Bruton asked the Minister for Industry and Commerce if he will outline the way in which the activities of the National Development Corporation and the IDA are to be integrated, in accordance with his statement in December 1990, and if such integration will involve any change in the statutory independence conferred by the Oireachtas on the board of the National Development Corporation.
In my preface to the Review of Industrial Performance, 1990, I drew attention to the large number of promotional measures which are undertaken by different State agencies in the form of direct financial support of companies and in the provision of advice and information. In that context, I was conscious that the increasing use of equity by IDA in assisting companies meant that there are certain overlaps between IDA's role and that of the National Development Corporation. Indeed, in the context of the review I also indicated a decision to move within the next three years to a situation where up to 50 per cent of financial supports to medium-large indigenous industry would be in the form of equity or other remunerating forms of aid. Such a development could, of course, tend to increase the degree of any existing overlap.
For this reason, I indicated that, in order to provide a more cohesive and integrated approach to State equity investment in enterprise, the activities of NADCORP and the IDA would be more closely integrated. The manner of integration is currently being examined by my Department, I intend to have this examination completed in the near future and I will then make an announcement on the matter.
The statutory independence of NADCORP, to which the Deputy refers, can, of course, only be changed by legislation.
Will the Minister agree that the purposes for which NADCORP make equity investments are different from the purposes for which the IDA make equity injections to companies as part of a grant package? Will he agree that the culture of the two organisations in regard to their motivation for making equity investments is different as one is a venture capital body and the other an industrial development body?
I suppose there has been a certain difference in approach by the two bodies during the short period they have been jointly in existence but that does not create any major problem in trying to bring them closer together in order that the State would have one — rather than two — investment holding bodies of this kind.
Does the Minister expect to introduce legislation to amend the statute establishing the National Development Corporation?
I do not have such a proposal at the moment.
Does the Minister expect to introduce legislation in that regard?
I cannot say I will speculate about that in future but, obviously, I cannot rule out the possibility that some statutory change may have to be made.
Will the Minister agree that the opportunities provided by the National Development Corporation up to now have been under-utilised and that perhaps this welcome trend towards the IDA taking more of an equity stake in companies rather than doling out grants might loosen the situation? Will he also agree that the original purpose of the National Development Corporation might be better served in the new joint arrangement?
It might well be. I do not see the need for the two bodies operating as totally independently of one another as they have up to now and that is why I made my proposals.
Is the Minister happy with the progress made by the National Development Corporation over the past two or three years?
They have played a limited role in terms of the level of their investments during that period but I am sure that some of their investments — probably most — have been invaluable.
Is the Minister aware that NADCORP make investments in areas which do not come within the remit of his Department, such as tourism and fisheries? Any attempt to merge NADCORP with the IDA would remove an instrument for the making of equity investments in tourism, fisheries and other areas outside strict manufacturing, which is the concern of the IDA.
I am aware of that and it is obviously a matter which will be borne in mind.
What has the total level of investment by NADCORP been in the past three years?
That seems to be a separate question.
I do not have that information to hand but my recollection is that last year it was £2 million of grant-in-aid plus £1 million of own resources. The figures were probably somewhat similar in the earlier years, perhaps a little higher.
That disposes of questions for today.
