asked the Minister for Industry, Commerce and Tourism the steps he is taking to prevent the closure of Killdara Spinning Company Ltd., Newbridge, Co. Kildare.
Private Notice Question. - Newbridge (Kildare) Company Closure.
This company is in receivership and is therefore, legally under the direct control of the receiver. The IDA are prepared to do everything possible, in co-operation with the receiver, to find an alternative promoter to take over the enterprise.
Is the Minister aware that two years ago the IDA paid a grant to Revington Reid Ltd. who are outside this country, with no benefit to the Killdara Spinning Company?
It would be a day-to-day administrative matter for the IDA and it would not come directly under my control. However, I am aware of the situation. At the time of payment of the grant the then considered opinion was that it would be more beneficial from a national point of view to pay the grant to the parent company rather than to the Irish subsidiary because in the event of anything going wrong with the Irish subsidiary there would be a lien on the parent plant. What has happened is that the parent plant have gone into receivership rather than the Irish subsidiary; the parent organisation have dragged down the Irish subsidiary. The IDA will be making a claim against the parent organisation.
Is the Minister aware that a receiver has been appointed by the Midland Bank? Further, does he know that Killdara Spinning Company do not owe any money to the bank and that the action was taken because of the action of two directors outside the country in signing a guarantee? Does he know that Killdara Spinning Company have made a profit and have a full order book, that they have to close down because of an action by a company outside this State?
Like many companies here, Killdara Spinning Company are a subsidiary of a parent organisation outside this country. The parent organisation went into receivership on the 16th of last month and a receiver was appointed for the Irish subsidiary on the 27th of last month. There has been a European recession with regard to the entire synthetic fibre industry caused by problems created as a result of the Americans subsidising their synthetic fibre industry. This affected the UK parent of Killdara Spinning Company and, in turn, it affected that company also.
I should like the Minister to tell the House if it is normal for the IDA to pay a grant to an outside company without any benefit to the Irish subsidiary.
I would question that it was without benefit to the Irish subsidiary. This company were taken over in 1976 and provided employment for 140 people and, to me, that was of benefit to Kildare and to the country.
There was an Irish subsidiary prior to the starting of Killdara Spinning Company. Is the Minister aware of that?
I am aware of it and I am sure the Deputy is aware of the history of that company. The IDA succeeded in attracting an industry to take over and but for that we would not have had the Killdara Spinning Company. The IDA are working with the receiver throughout all their offices in the world to find a promoter to come here in place of the UK company who have gone to the wall. A certain amount of interest has been shown by companies throughout the world and I hope—I cannot be more positive—that an alternative promoter will be found for Killdara Spinning Company.
Will the Minister say how much was paid by the IDA to the company in the UK and what proportion was received back?
As I have said already, this is a day-to-day matter for the IDA. Payments to individual companies are never revealed. I have said that the IDA will be making a claim against the parent organisation.
It depends on the receiver. Killdara Spinning Company do not owe one penny to the Midland Bank——
I am calling on the Taoiseach for the Order of Business.
The Deputy has got a fair run.
The question is will the IDA get their money?