asked the Minister for Industry, Commerce and Tourism if he has any plans to compel private industrial investors to allocate equity holdings to the IDA or the State in return for allowing them to participate in the IDA grants scheme.
Ceisteanna—Questions. Oral Answers. - IDA Grants Scheme.
23.
I have no plans at present to amend the present scheme whereby the Industrial Development Authority are enabled, but not required, to take equity participation in the companies they assist. Matters of this kind may, I understand, be examined in the NESC study on industrial development policies and any recommendations which they put forward will, of course, be considered. However, a general, across-the-board requirement on the lines indicated in the question could not, in my view, be contemplated as it would almost certainly constitute a serious disincentive for many potential foreign investors.
Could the Minister say whether equity participation has been taken up by the IDA in respect of any enterprise they have grant-aided in this way?
Yes, about 15 or 16 companies.
Would the Minister agree that this represents a very small proportion of the total number of companies they have grant-aided?
Yes, it is a small proportion of the total number of companies they have grant-aided but the value of the shareholdings at cost is about £8.9 million. The amount is relatively substantial.
Would the Minister indicate what criteria the IDA adopt in deciding whether to build an equity participation provision into their agreement with the company concerned?
Normally it is at the request of the company concerned.
Not on their own initiative?
Not against the will of the company.