asked the Minister for Industry and Commerce why an equipment grant from the IDA has not been approved for a company (details supplied) in County Offaly.
Ceisteanna—Questions. Oral Answers. - Offaly Equipment Grant.
25.
I am informed by the Industrial Development Authority that they decided in May, 1975 on the recommendation of their consultative committee on re-equipment and modernisation, which includes representatives of both sides of industry to discontinue grant assistance to the concrete products sector, with the exception of pre-stressed products, on the grounds that there was already overcapacity in the industry and that the scope for improving efficiency by means of grants was not significant. The company referred to are engaged in the manufacture of concrete products and are, therefore, not eligible for grant assistance.
Is the Minister aware that this company in Birr are giving very good employment and, in view of the unemployment in the area, would he have the matter reconsidered?
I think the Deputy is familiar with the fact that I have recognised the needs of the Birr area. I am familiar with this firm but I have to say that putting public money into a sector where there is already surplus capacity endangers the safety of all other jobs in all the other firms. I would think it prudent in everybody's interest to use any available grant moneys we have to get growth in sectors where there is not surplus capacity because I do not believe it is prudent to endanger the health of a whole sector by stimulating extra investment where there is already sufficient or sometimes too much.
In view of the fact that this company have been viable over the years and lack of assistance now could lead to the creation of unemployment I believe they have a very good case for assistance and I would hope the IDA would consider the matter on that basis. The Minister will, I think, agree there is difficulty in the area.
I do, indeed, agree but I made reference to the threat to other plant by stimulating extra investment in a particular plant and if the Deputy considers the area and the closure of a plant—I will not name any names—in April of this year he will, I think, see the merit of our not stimulating extra investment in this particular project.
In regard to the plant to which the Minister referred, it was not engaged in that type of business at all. It was in a different type of business. It was pre-cast, actually. I do not wish to get into an argument but I do not want the Minister to take me up wrongly. Here we have a viable company who have proved themselves down the years and I would be very disappointed to have them treated in the manner in which they are being treated.
I have given the Deputy a great deal of latitude.
I appreciate that.
Then he ought not to show ingratitude.
Some of the companies in the area which only started recently have got enormous sums of money. I cannot understand the situation at all. I think the IDA criteria too harsh in this matter.
The remaining questions will appear on tomorrow's Order Paper.
I propose, with your permission, to raise on the Adjournment the question of the operation of the recent oil increases especially in connection with users of oil for central heating.
I will communicate with the Deputy in the matter.