asked the Minister for Industry and Commerce whether he is aware of the hardship and unemployment caused by the foreclosure, without notice, by some of the banks on industries and distributing firms with large labour contents, and, if so, if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Foreclosure by Banks.
I have no information of any general foreclosure on industries and businesses. In any particular case the arrangement of financial accommodation is a matter for settlement by negotiation between the bank and the individual firm concerned.
Has the Minister received no representations recently with regard to a particular firm where the bank moved in and foreclosed on an overdraft without any notice and gave this man no chance to save himself and put 200 people out on the road?
I do not think it would help the firm in question to discuss their business publicly in this House.
I am not asking that their business should be discussed here in public. I am asking the Minister has he received representations.
I cannot reply to the Deputy's question adequately without discussing the firm's business in the House.
Is the Minister really not aware that the banks have been enforcing a very stiff credit squeeze on business firms, in the last two months particularly?
Only three such cases have come to my notice and then in connection with applications for trade loan guarantees. As I say, these particular cases are of a kind that foreclosure is not the only element, but I cannot adequately explain to the House what the circumstances are in each of these cases without disclosing, to these firms' disadvantage, what the particulars are.
Could the Minister give the House an assurance, on foot of his replies now to the supplementary questions, that he will take all possible steps to ensure that these people get the maximum protection afforded by the State in the circumstances?
That is a very wide assurance to ask from me and, of course, I could not give any such blanket assurance. The Trade Loan Guarantee Acts are available to assist firms in certain circumstances, but, as public money is involved, the circumstances of each of these firms must be fully considered. The State cannot be expected to underwrite rash investments——
Granted.
——or irresponsible management.