asked the Minister for Finance the steps he is taking to protect the interests of tenants of a company (name supplied) in the event of a takeover.
122.
Ceisteanna—Questions. Oral Answers. - Cork Company Takeover Offer.
121.
asked the Minister for Finance the steps he is taking to protect the interests of the workers of a company (name supplied) in the event of a takeover.
123.
asked the Minister for Finance if he will state in respect of a company (name supplied) in Cork the State's involvement; whether negotiations have taken place for the sale of the company; if so, the loans that have been given; and if steps will be taken to ensure the welfare of the workers and tenants of the company in the event of a sale.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 121, 122 and 123 together.
The decision on a takeover offer of the firm in question rests with the shareholders of the company and I have no function in this matter. A majority of the shares in this company are held by Fóir Teoranta. These shares were purchased in 1971 at a cost of £100,000 and Fóir Teoranta also has a secured loan of £420,000 to the company. An offer for takeover has been made and, if the offer is successful, the likelihood is that Fóir Teoranta will forgo their controlling share interest inside five years. I am informed that full consideration will be given to the interests of the workers and tenants of the company.
Could the Minister give special attention to an applicant or applicants whose first priority would be to keep the industry a going concern, with the possibility of developing and expanding it?
The Deputy will appreciate that the Minister for Finance has no function in these matters. By statute, the responsibility lies on the board of Fóir Teoranta. Fóir Teoranta are desirous that this company would continue their existing operations. It is in the interests of all concerned in the operation that the company get a new injection of capital and management. That is being borne in mind. Fóir Teoranta are aware of the Government's anxiety to ensure continuation of employment.
In reply to the original question, the Minister said that he had no control over the shareholders. Is the Minister aware that the shareholding now in the possession of Fóir Teoranta was supplied initially through the Industrial Credit Company? While he may not exercise day-to-day control, will the Minister ensure that the purpose of any takeover will be to maintain the company as a going concern and also to maintain the interest of the tenants of the company?
As I said originally, the power to make decisions in this matter lies with the board of Fóir Teoranta. The Minister's function is only a general one related to the approval of the memorandum of association, appointment of directors, transfer of shares, guarantee of borrowings and so forth. It does not entitle him to intervene in the day-to-day operations of the board. This would be regarded as one of the day-to-day operations of the board which was set up in order to provide rescue finance to businesses which were considered viable as long as the necessary finance was made available to them. I am satisfied that the board of Fóir Teoranta are aware of the Government's anxiety in this matter and I have every confidence that they will bear these matters in mind and come to the right decision which will be the best for the people employed by the concern in question.
I accept the assurance of the Minister that the Government's intentions will be kept before Fóir Teoranta. Will he also remember that the purpose of the initial intervention by the Industrial Credit Company was for the specific purpose of maintaining employment, maintaining the brewery as a going concern and protecting the interests of the brewery's tenants?
I am satisfied that the board of Fóir Teoranta are aware of this and I feel confident that they will respect it. There is a realisation that the company need new management and fresh cash. The best prospect of getting that is through an outside concern providing it. Fóir Teoranta is not in a position to continue indefinitely maintaining any concern in a loss situation. The administration responsible for setting up Fóir Teoranta accepted that they were not an organisation permanently to keep in operation companies which were in difficulty.
I am not aware to what extent new management is required but in view of the likelihood that the company would want assured outlets, could the Minister indicate whether in order to achieve this the offer which is reportedly about to be made by a group of vintners as a co-operative group would be considered by Fóir Teoranta?
Again I cannot give any specific assurance on this matter because it is a matter for the board. I would be very surprised if the board and the shareholders in the company did not consider all offers. I would expect them to accept the best offer and not agree to any offer other than the best. When I say the "best", my test would include the best in the interests of the people in the company, of the workers, and everybody else, and this would include a very large number of people.
I would be satisfied with that.
(Dublin Central): Arising from Deputy Lynch's remark that there is a certain group interested, does the Minister know that Fóir Teoranta have set 19th March as the closing date? It will take considerable time to investigate the financial position of the company, but would the Minister be prepared to defer 19th March as the last date for an offer?
Once again I want to emphasise that it is not for me to make any decision regarding deferral. This responsibility lies with the board of the company. I am not responsible for the legislation nor for any members of the board. This Dáil gave certain powers to the board of Fóir Teoranta and I am confident that they will discharge those responsibilities properly.
Will the board extend the courtesy to the Minister of their decision?
I expect to be kept informed.
Does the Minister guarantee that?
I expect to be kept informed.