Mary O'Rourke
Ceist:228 Mrs. O'Rourke asked the Minister for Enterprise and Employment the details of the penalty clause in the Irish Steel deal. [2329/96]
Written Answers - Irish Steel.
Under the contract which was negotiated with ISPAT International and which was signed on 6 September 1995 ISPAT International entered a contractual commitment to employ a minimum of 331 full-time workers in Irish Steel for the first five year of their ownership of the company. The figure of 331 concurs with the level of employment that Irish Steel would have attained under its own agreed restructuring plan with some further investments. The contractual commmitment with ISPAT International also provides that it will pay to the State specified liquidated damages in the event that the number of full-time workers falls below 331. The commitments of ISPAT International will be one of many items for discussion with the company over the next few weeks in the light of the restrictions on production and sales which were necessary to overcome UK objections in order to achieve unanimous approval of the State aid involved in the Irish Steel restructuring plan under Article 95 of the ECSC Treaty.