Written Answers. - Grant Aid.
Richard Bruton
Question:
96
Mr. R. Bruton
asked the
Tánaiste
and Minister for Enterprise, Trade and Employment the application, if any, made for grant aid by a company (details supplied) to the IDA, now Forbairt, prior to the 1989 election; the meetings, if any, which took place between the then Minister and the company in relation to this application; the grants, if any, issued; if so, whether the grants and conditions conformed with normal grant aid policy; the amount and form of the support provided by the State; and the conditions which applied.
[13297/98]
I have initiated inquiries with all the industrial development agencies which are under the aegis of my Department in order to establish the details of any applications for grant aid made by the company referred to by the Deputy and to identify any political representations made in relation to such applications. The inquiries undertaken have identified applications for grant aid made by Rennicks Group Ltd. and other related companies. As of now it has not been possible to identify any company operating under the name of Rennicks Engineering.
At this stage I can confirm that neither my own Departments records nor the historical files of the agencies which have reported to me so far reveal any evidence of any meeting which might have taken place, between the directors of Rennicks Group Ltd. and the then Minister for Industry and Commerce, Mr. Ray Burke, who was in office in the period from November 1988 to July 1989. There is, moreover, no evidence of any political interference in the normal conduct of the grant application process revealed in these papers. In addition, inquiries and searches made in my Department have failed to reveal the existence of any ministerial diaries relating to Mr. Burke's period in office.
For the purposes of this reply I propose to outline the contacts revealed by inquiries to date which my Department, its Ministers and officials and the former IDA had with Rennicks Group Ltd. particularly in the period prior to the 1989 general election. I am also circulating with my reply a copy of the interim report provided to me last Friday at my request by Mr. Dan Flinter, Chief Executive of Forbairt. This report details grant aid provided to the company by the former IDA up to the end of 1993 and by Forbairt since that time.
As regards the information requested from the other industrial development agencies concerning their involvement with Rennicks Group Ltd. or related companies I propose to publish a separate report on such contacts in the coming days. I will also be happy to provide copies of any relevant files, from my Department to the Flood Tribunal.
In late l987 Rennicks Group Ltd. submitted an application to the former IDA seeking financial assistance towards the expansion of its business. The IDA and Rennicks Group Ltd. subsequently agreed that, prior to a decision being made in relation to its application, a company development programme would be of benefit in helping the company to develop and manage its growth strategy. The company development programme started in March 1988 and continued over a number of months.
Neither my Departments records nor the historical files of Forbairt reveal any evidence of any meeting which might have taken place in relation to this application between representatives of Rennicks Group Ltd. and the then Minister for Industry and Commerce. The approval in October 1988 of grant assistance by the former IDA in relation to this application actually predated the appointment as Minister for Industry and Commerce of Mr. Ray Burke in November 1988.
That approval was for grant assistance of £240,000, being 20 per cent of the total investment of £1.2 million by Rennicks Group Ltd. was in respect of the business plan which emerged from the company development programme referred to above. Only £180,000 in capital grants was subsequently paid.
The inquiries undertaken by Forbairt have confirmed that these grants were approved in accordance with normal grant aid policy and that normal grant conditions applied. In the context of that grant application, the former IDA Authority had also been informed of a change in the ownership structure of Rennicks Group Ltd. involving the acquisition by Fitzwilton plc of 51 per cent of the shareholding from Robin and Maureen Rennicks.
Discussions were also taking place in the course of 1989 between Rennicks Group Ltd. and the IDA regarding a joint venture in which Rennicks-Fitzwilton were the minority partner with Seibulite (Mfg.) Ltd., a Japanese company — engaged in the manufacture of reflective plastic sheeting. These discussions culminated in October l989 with the IDA approving total assistance of £4.2 million in respect of the joint venture for a project to locate in Kilcoole, County Wicklow. Because of difficulties relating to planning objections, however, the Kilcoole project did not proceed and no grants were paid.
In this regard, I should also like to add that, in my capacity as Minister of State at the Department of the Environment, I subsequently met with the IDA and officials from the Departments of the Environment and of Industry and Commerce on 21 January 1991, following upon representations made to my colleague, Deputy O'Malley, the then Minister for Industry and Commerce, by the Fitzwilton Group in order to discuss the problems relating to the planning process which had apparently contributed to the loss of the Seibulite joint venture project. I am circulating copies of correspondence in relation to this matter and a report on the meeting referred to with my reply.
Throughout the period 1987-89 officials of my Department had been involved in a series of discussions with Rennicks Group Ltd. about the continued suspension of the tariff duty applicable to reflective plastic sheeting — the raw material manufactured by the Seibu Polymer Chemical Corporation of Japan, for which Rennicks Group Ltd. acted as Irish distributor. In this regard, a meeting took place on 14 April 1989 which was attended by representatives of Rennicks Group Ltd. and by the then Minister of State with responsibility for science and technology, Dr. Sean McCarthy, who was accompanied by officials of the then Department of Industry and Commerce.
I have tried to respond to the Deputy's question in as comprehensive a manner as possible. However if there is any aspect in respect of which the Deputy would like clarification, I would be happy to seek to do so.
