asked the Minister for Industry and Commerce if he is aware that, in a prospectus recently published by Irish Shoe Supplies (1946), Limited, it was stated that the original company had, in seven and a half years, carried net profits which represented an annual average of 33? per cent. on the ordinary capital; that the proceeds of the sale of a part of the assets of the old company will provide £2 4s. 0d. to each holder of £1 of the existing ordinary capital; that the five directors are to receive £1,400 per annum as remuneration; and that the company enjoys a protective duty of a minimum of 60 per cent.; further, if he will state if he was shown and approved this prospectus before it was published; and if it is his intention to continue the protection afforded to this company.
Ceisteanna—Questions. Oral Answers. - Irish Shoe Supplies Limited.
I have seen the prospectus issued by Irish Shoe Supplies (1946) Limited but it is not part of my functions to approve of such prospectuses.
Since 1943, Irish Shoe Supplies Limited has conducted its business in accordance with a gross profit agreement made with my Department. The net profits earned by the company under this agreement have been reasonable in relation to the company's turnover. In this connection, I must point out that the ordinary capital of a company is not necessarily the capital employed in its business. Furthermore, the figure for directors' remuneration quoted in the question appears to include the salary of the managing director.
I am satisfied that the prices charged by this company for its products have at all times been reasonable, and during the past three years been in many cases lower than the prices prevailing for corresponding goods in Great Britain.
I know of no reason why the protection afforded to the products of this company should not be continued. The company has conducted its business economically and efficiently, its factory is located in an area where industrial employment is very desirable, and its products have been of satisfactory quality and reasonable prices. It represents a form of industrial development which the Government will always be glad to foster.