andMr. Wilson asked the Minister for Industry and Commerce why the IDA has not paid the balance of £5,000, still outstanding, of the equity investment which it agreed to make in a company (name supplied) in County Cavan.
Ceisteanna—Questions. Oral Answers. - Equity Investment Balance.
1.
The money outstanding has not been released because conditions attaching to the investment have not been met by the company. Discussions are, however, continuing with the company with a view to finding a solution to their problems.
Is the Parliamentary Secretary aware that this company are only barely hanging on by the skin of their teeth, that they are having extreme difficulty in keeping open, that 20 people are liable to lose their jobs very soon and that if this money were forthcoming these difficulties would be overcome? In the circumstances would he intervene with the IDA to ensure that it is paid without delay?
I am aware that the company have some problems but the conditions which the IDA have set and which they must have fulfilled before money can be paid are reasonable conditions.
What are these conditions?
I am advised by the officials of the Department that it would not be desirable for me to go into any detail on this situation or for there to be undue public discussion on the matter and I would prefer if the Deputy did not press me to give any further information on that point.
If nothing is done the firm will close down. Is the Parliamentary Secretary aware that the IDA have recently imposed these conditions, which I believe include a condition that somebody else would invest a substantial amount of money in the company, and that these conditions have been imposed because of the difficulties that have arisen by the effort that was made originally by the IIRS?
There are a number of assertions implicit in the supplementary question which I do not think would be accepted by the agency concerned.
Does the Parliamentary Secretary agree that one of the conditions is the investment of a fairly substantial sum of money by some outside party, private individual, before the IDA will honour their own commitment to invest further?
There is something to that effect.
Does the Parliamentary Secretary not agree that in the circumstances the private individual will find it very difficult to risk his own personal capital when it appears that there is a grave danger that the IDA will let the firm collapse?
The question arises as to whether the other conditions will be fulfilled. If they are fulfilled then the IDA would be in a position to make a payment.
What are the other conditions? I am not aware of any others.
As I have indicated already, I have been advised by my officials—and there is no attempt on my part to conceal information from the House—that it is not wise to give an undue amount of information on this subject but I will give the information in view of the Deputy's persistent questioning on the matter. The other conditions are: agreement between the company and the IIRS to continue working together on the development of the saw and the submission of an auditor's certificate that at least £15,200 has been spent on development work on the hydraulic saw.
Is the Parliamentary Secretary aware that the whole difficulty in relation to the saw arose because of the involvement of the IIRS?
I am aware that assertions have been made to that effect.
Is the Parliamentary Secretary aware that on Saturday afternoon last in an effort to solve to some extent the difficulties that were created by the IIRS, that organisation delivered a milling machine to the firm to enable them to try to meet a contract which must be met by next Friday?
I am aware that there is a question of another contract also which is a separate issue.
And is the——
I have given the Deputy a lot of latitude. There must be some finality to questions.
I appreciate that. My final question is: Is the Parliamentary Secretary aware of the consequences of this company not being able to meet that contract, consequences not only for themselves in terms of penalties but for other firms also including the assembly line of a new car?
The IDA and other agencies—which are numerous—that have been assisting this company are well aware of all the factors involved in this case and I should say that from the information at my disposal I am satisfied these agencies have been making exceptional efforts to be helpful to this company.
Would the Parliamentary Secretary undertake to tell his Minister that the local development committee are seriously concerned about this factory and about the state of industry in general in that town and would he ask the Minister to do something about it?
The Deputy's remarks to this effect are now on the record of the House and will be circulated in the normal way. I am quite prepared to convey what he has said to the Minister.