asked the Minister for Industry and Commerce in view of the sum of over £1 million due from the Government of Sudan to his Department arising from the breaking of an agreement by the Sudanese, the action if any, he has taken to recover this sum and to prevent a recurrence of the situation.
Ceisteanna — Questions. Oral Answers. - Recovery of Money from Sudan.
5.
The sum to which the Deputy refers is due because the Sudanese Government have failed to honour a bilateral rescheduling agreement of July 1981 in respect of the export of capital goods.
From 1982 to 1986, various attempts were made to get payment. Repeated requests were made to the Central Bank of Sudan. In addition the assistance of the Irish Embassy, London, the Department of Foreign Affairs, Córas Trá-chtála, the Central Bank of Ireland and a Swiss intermediary was obtained but with no success. The reality now is that Sudan is insolvent.
To prevent a recurrence of this situation export credit insurance has not been made available by my Department in respect of exports to the Sudan since 1979.
In a context in which every £1 is important has the Minister or Minister of State written off completely the possibility of getting back this sum of £1 million-plus. If not, has he considered taking legal action against those who owe it?
I appreciate the Deputy's concern. We have not formally written it off. The Deputy will appreciate that, in circumstances in which we were given a Sudanese Central Bank guarantee —which is now not being honoured, in a country which is arguably the poorest in the world—the likelihood of our obtaining those funds is slim indeed. The Department will continue to press for recovery of the funds. I am using every means at my disposal to recover them. I should also say to the Deputy that the question of further rescheduling agreements between Ireland and the Sudan was considered in 1985. We have kept an eye on the position since then but it was clear that other EC member states who had negotiated a number of rescheduling agreements with the Sudanese were not being paid either. It would appear to be a difficult position. I am not optimistic that we will succeed. We have not formally written off the debt and will maintain every pressure on them to seek its recovery.
What about legal action?
That is a separate question.
It is not at all.
We have considered every possible action, including that, but it does not seem appropriate to take that kind of action at this stage against that country, considering the horrendous state of poverty obtaining there——
It is no worse than when we entered into the agreement.
——and the reaction of their Central Bank. We will maintain pressure on them to try to recover the funds. I am not convinced that the legal route is the one to take.