asked the Minister for Industry and Commerce the present system of examining the credentials of grant-aided industries being established in this country; and if he is satisfied that the present system is adequate to ensure protection for the taxpayers and the employees of such industries.
Ceisteanna—Questions. Oral Answers. - Grant-Aided Industries.
2.
I am informed that the Industrial Development Authority makes a thorough investigation of the credentials of promoters seeking grant aid for the establishment of industries in this country.
This examination which involves direct inquiries through the authority's overseas offices, inquiries through banks and specialist agencies and an analysis of company accounts, gives information on the promoters' financial standing, commercial history and current operations and on their general background and status. I am satisfied that the present system meets the requirements specified by the Deputy.
Does the Minister not think it right that his Department should have power to scrutinise the accounts of industries establishing themselves here, industries which have been given State grants to enable them to do so, to ensure there will be no danger of these industries closing down, as happened in Tuam last week?
I think the Deputy may not quite understand the procedure. First, the IDA is an agency of my Department. Secondly, a very senior member of my staff is on the board of the IDA so that any industrial project comes to him in that capacity. Thirdly, over the £350,000 threshold all IDA decisions in regard to grants come to the Government through me and they, therefore, reach the Department for scrutiny in that way. Fourthly, at any time the accounts of the company are available to my Department if we seek them. Finally, there are occasional bad risks. There are occasional firms which get money and the investment does not turn out as everyone hoped it would, but it is fair to say, and it is fair to say across political boundaries, in regard to the best as well as the worst, that these are very few. The Industrial Development Authority is very skilled at spotting the bad risk and I understand that, in comparison with industrial agencies in other countries, we back far fewer losers than most others and I have said to the IDA that I would rather run the risk of backing the very odd loser because, if one says to a man that he must never make a mistake, one inhibits him so much he cannot act creatively. I am rather pleased with the record.
Deputies
Hear, hear.