State majority stakes in multinational enterprises
Browne proposed that the State take at least a 51 per cent stake in new multinational enterprises to deter closures. O’Malley rejected the proposal, arguing it would discourage overseas investment and jobs without eliminating closure risks.
asked the Minister for Industry, Commerce and Energy if he will take at least a 51 per cent equity holding in all new industrial enterprises set up in this country by multi-national firms, in order to prevent the recurrence of recent closures.
Comment on this
The answer to the question is "No".
The Deputy's question implies that the taking by the State of a majority shareholding in a particular industrial undertaking would eliminate the risk of closure of such an undertaking. I do not accept that implication.
To create badly needed new jobs here in this country we depend to a considerable extent on the establishment here of new projects sponsored by overseas companies. I am satisfied that a requirement along the lines suggested by the Deputy would be a serious deterrent to the attraction of such projects. I might add that other countries who are competing with us for projects of this kind do not impose conditions of the kind suggested.