Dáil Éireann debate -
Thursday, 4 Jun 1998

1.Background

Rennicks Group Ltd. was established in 1976 and during the period 1976 to 1985 was approved a total of £370k and received payments in the same period of £310k.

Since 1985 five key projects were approved which were for further expansion of the company's existing business and projects to add on new products. A total of £2.5m in grants and preference shares was approved for Rennicks during this period of which total payments of £1.9m have been made.

The company created 200 new jobs since 1985. A comparison of all moneys paid including capital grants, preference shares and R&D Grants indicate that 66% of the projected jobs target had been achieved while 70% of the moneys had been disbursed.

The major investment decisions were as follows:

In 1995 Mr Rennicks acquired control of Toptech Ltd. Between 1995 and 1996 a total of £871k including £330k in preference shares was approved to restructure and expand this company which provides an electro magnetic shielding service to the electronics industry. To date £600k of this support has been paid.

2.Review of Files

All available files relating to Rennicks Group Ltd. and Toptech Ltd. over this period 1985-98 have been reviewed. In the review of these files no evidence of political representation on behalf of Rennicks Group Ltd. or Toptech Ltd. in relation to the provision of financial support by either IDA or Forbairt has been found.

A review of involvement between the agencies and other related companies is also under way.

A review of archival material which is stored for safe keeping in an offsite location is progressing. This search will take some further time.

3.Executives

The case has been reviewed with the relevant executives. Their individual memories of the history of the relationship between these companies and the agencies do not indicate any recollection of any political representation on behalf of either of them in relation to the provision of financial support.

4.Conclusion

On the basis of the review of the files available and of discussions with the relevant executives, no evidence was found of political representation on behalf of Rennicks Group Ltd. and Toptech Ltd. in relation to the provision of financial support. A review of the offsite archival material is under way.

29 May 1998

Oifig an Aire Tionscail agus Tráchtála

(Office of the Minister for Industry and Commerce)

Baile Átha Cliath 2

(Dublin 2).

12 December 1990

Ms Mary Harney TD

Minister for Environmental Protection

Department of the Environment

Customs House

Dublin 1

Dear Mary,

I enclose a copy of a letter of 11 December which I received from Fitzwilton plc. This is deeply disturbing and very embarrassing from my point of view. This is a major loss to the Republic and will be broadcast world wide by the Northern Ireland Authorities to our detriment.

The open ended appeals that take up to a year followed by appeals to the Court here really make things very difficult. Wicklow County Council had no reason to fear this project. In losing this project we are not just losing 200 jobs but may lose 2,000 or even 5,000 as a result of the undesirable image it creates.

Is there anything you could do with the people in Kilcoole who are more likely to trust you than anyone else?

Yours sincerely,

Desmond O'Malley TD

Minister for Industry and Commerce

Ref: M/C/O'M.004 Fitzwilton Public Limited Company

Registered Office

1/2 Upper Hatch Street

Dublin 2, Ireland

Telephone 755411

Telex 92001

Fax (Grp 2 & 3) 755415

Registered in Ireland No. 1715

11th December 1990

Mr. Des O'Malley

Minister for Industry & Commerce

Kildare Street

Dublin 2

Dear Minister,

It was a pleasure to meet you at lunch today in Milltown but I did not find an appropriate time to raise an issue which may be of some embarrassment to you. This letter is by way of information only and I do not think there is anything you can do at this stage to change the course of events because of our complex planning procedures.

Fitzwilton Plc have 51% of a company called Rennicks Manufacturing who make reflective number plates and road signs. Rennicks have been supplied by a Japanese company over a long number of years. Because of European tariffs and increased costs in Japan, the Japanese company wish to relocate in Europe. Because of its close connection with Rennicks they were persuaded to locate in Ireland. A joint venture agreement was signed whereby the total manufacturing plant would be closed in Japan and transferred to Ireland and 200 immediate jobs would be created.

Negotiations took place withthe IDA and a grant aid package was agreed. They persuaded us to locate the factory in Kilcoole, Co Wicklow. This industry is a chemical industry but meets the highest US and European pollution control standards. However residents in Kilcoole objected. A judicial review is under way and An Bord Pleanála is considering an objection. This process can take some considerable time and the Japanese became impatient.

Some two months ago we commenced negotiations with the Industrial Development Board in Northern Ireland and I met the Minister for Industry, Richard Needham, there two weeks ago.We have agreed in principle to locate the plant now in Northern lreland.

We know we can commence operations next September because of different planning laws. For the Japanese, who are trying to close down a plant and build up a stock for the market during the closedown, they required definite time tables which we cannot give them in the Republic.

I wish to make the point that it was not our intention to locate outside the Republic of Ireland or was it our intention to play the IDB off against the IDA. Peculiarities of the planning laws in this country have forced the industry North and the IDA seem unable to come up with an alternative proposal.

It is not our intention to make any big deal out of the situation, however our decision to locate in the North could cause you some embarrassment and therefore I felt you should be fully informed. The formalities are unlikely to be complete before early January.

Kind regards

Yours sincerely

Len O'Hagan

Operations Director