asked the Minister for Industry and Commerce what grants have been paid to a firm (name supplied) in County Monaghan; what is the present situation of the enterprise; and whether the local contractor who built the factory and its extensions has been paid the £12,398 owing to him for his work.
Ceisteanna—Questions. Oral Answers. - Grants to County Monaghan Firm.
54.
Published reports of An Foras Tionscal show that they have paid grants totalling £83,000 to the firm referred to by the Deputy.
The enterprise is in the hands of a Receiver who is, I am informed, operating the company with a view to its disposal as a going concern. Payment of sums due to the contractor who built the factory is a matter for the company.
Is the Minister aware that the receiver is now installed and that there is an outstanding balance of £15,000? In view of the fact that the receiver owes the local contractor £10,398 and debts are also due to foreign firms, could the Minister do anything to secure that the balance outstanding, as available to the receiver, will be appropriated to the liquidation of this debt to a relatively small local contractor who is at present in danger of losing £12,398?
I am sure the Minister has every sympathy with the local contractor but, so far as distinguishing between one creditor and another goes, there is no question of obligation there, and it would not be advisable to do that, no matter how sympathetic we might feel to the contractor as distinct from other people.
Is the Minister aware that in this particular case it was popularly stated, and considerable publicity was given to the fact in the locality, that the Minister for Transport and Power was securing grants from An Foras Tionscal for the benefit of this company which in fact, I think, he did and that not unnaturally local people believed that an enterprise, so sponsored by the Minister for Transport and Power, was not likely to be put into the hands of a receiver? Depending more or less on his guarantee—there was no specific guarantee given—these local people have undertaken very heavy liabilities and devastating losses. Would the Minister look into the situation to see if anything can be salvaged to protect this contractor from virtual ruin if the balance of £12,000, odd, is not paid to him? Perhaps the Minister will look into this case.
Certainly. I know that this company employed 162 people over two years ago and were paid £83,000, a very considerable sum of money. I also understand the original contract placed with the contractor was for a sum of £47,000. I will certainly put it to the Minister but, from a legal point of view, he cannot do anything to distinguish in favour of the building contractor as against any other ordinary creditor. I will certainly bring the Deputy's remarks to the Minister's attention.
I think it would be possible for the receiver, if he could get the remainder of this grant, to pay this debt, which, after all, is due to a local, or Irish national, in preference to an entrepreneur from abroad who is owed money because he took a particular interest in this establishment. Perhaps the Minister would examine this matter?
It is for the building.