I propose to take Questions Nos. 6 and 16 together.
In my written reply to Deputy O'Rourke on 26 January, I set out the details of Government financing and subsidies for Irish Steel in the years 1983 to 1994. The total equity currently held by the Government is £125 million, £25 million of which was held prior to 1983.
As part of its viability plan submitted to my Department the company has sought a capital injection of £40 million and a loan guarantee of £10 million. The amount per job that the capital injection represents is £125,000. It is not easy to determine the cost of the loan guarantee but if this is regarded as similar to the capital injection it would bring the total amount per job to £156,250.
Clearly the cost of the proposed viability plan is quite significant. Against this, however, the cost of closure is also likely to be significant. In that context, the Government is carefully assessing the company's application for funding and I am hopeful that the assessment can be concluded at an early date.
In conjunction with its assessment of the company's application for funds, the Government is currently examining the possibility of securing a strategic partner for Irish Steel. Any such partner would have to be capable of contributing to the financial success of the company and also to securing economies for the company through improved marketing and rationalisation of the product range.
Any proposed aid to Irish Steel is of course subject to European Union approval. In considering applications for aid in the steel industry, the European Commission applies the criterion that the company should attain viability within a three year time span. In assessing viability, the Commission specifies the gross operating margin which steel companies must achieve under normal market conditions in order to attain lasting financial viability. In submitting any application to the Commission for approval of aid to Irish Steel, it is important that the Government be in a position to satisfy the Commission that viability can be attained on the basis of the criteria set down by the Commission. The Government assessment of the company's application for funding is also being considered in this context.