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Dáil

Ceisteanna — Questions Oral Answers - Company's Financial Difficulties.

asked the Minister for Industry, Commerce and Tourism if he is aware that a company (details supplied) is experiencing major difficulties, and that further financial assistance has been refused by Fóir Teoranta; if he is in a position to take any effective action to ensure the continued operation of this company which has a name renowned for quality; and if he will make a statement on the matter.

Comment on this
Denis Gallagher Mr. D. Gallagher Fianna Fáil

I am aware that the position of the company in question is as stated in the first part of the question.

I share the concern, implicit in the question, for the future of manufacture of the company's product. Despite the prestige of this product, the company has, over a long number of years and under different owners, had difficulty in trading profitably. This has, I understand, been a major constraint on Fóir Teoranta in regard to the provision of further loan finance for the company.

I understand that Fóir Teoranta, with the assistance of the Industrial Development Authority, are actively seeking a purchaser for the business.

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The second part of my question asks the Minister if he is in a position to take any effective action to ensure the continued operation of this company. Has he, or have the Government considered any direct effective action they could take?

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Denis Gallagher Mr. D. Gallagher Fianna Fáil

Fóir Teoranta have been considering the position. They do not regard the viability of the industry at present one in respect of which it would be wise to have further funds made available for the continuation of the factory.

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First of all, we should refer to the fact that we are talking about the company which manufactures the carpets on which we walk in this House, which is world renowned——

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Padraig Faulkner An Ceann Comhairle Fianna Fáil

A question, Deputy, please.

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Is it not a fact that this company are currently awaiting finalisation of contracts for carpets in Irish emassies in Brussels, Athens and Paris and that the Government are currently in a position of bringing forward those contracts and ensuring the continuation of jobs in 1981?

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Denis Gallagher Mr. D. Gallagher Fianna Fáil

The company have been in touch with the Office of Public Works on the lines suggested by the Deputy. There are also efforts being taken in an endeavour to involve some other people in the carpet industry to explore the possibility of a take-over. There have been many developments in relation to this whole project. I am sure the Government will endeavour to do everything possible to ensure continuation of the factory but that is the decision of Fóir Teoranta at present in relation to the operation.

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I believe the Minister is a member of the Government. Might I ask him on behalf of the Government, of which he is a member, and indeed as a former Minister for the Gaeltacht, if he will give the House an assurance now that he personally will act to ensure that three contracts which are under negotiation — and there is nobody else involved — for the supply of carpets to Irish embassies in Brussels, Athens and Paris will be finalised in 1981? Can the Minister at least give the House that assurance today?

Comment on this
Denis Gallagher Mr. D. Gallagher Fianna Fáil

I do not have the details to which the Deputy refers——

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The Minister should have.

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Denis Gallagher Mr. D. Gallagher Fianna Fáil

I am sure the Government will do everything possible to ensure that that industry is allowed to continue.

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Peter Barry Mr. P. Barry Fine Gael

Would the Minister agree that the carpets being manufactured by this company are very different from the normal commercial carpets made in other factories throughout the country?

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Denis Gallagher Mr. D. Gallagher Fianna Fáil

Yes.

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Peter Barry Mr. P. Barry Fine Gael

That there is a skill involved here which, if this factory is allowed close, will be lost forever, and that it is in a remote part of the country?

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Denis Gallagher Mr. D. Gallagher Fianna Fáil

I accept that.

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Peter Barry Mr. P. Barry Fine Gael

Therefore to apply the normal yardstick of profitability in this case is not the right way of assessing its value to the country. We must preserve this skill. The wares of this factory are an advertisement in every embassy belonging to the Irish Government throughout the world and even in this House, as Deputy Quinn has said. Rather than looking for a commercial carpet company who will say "It is not viable and we cannot absorb the skills into our factory," the Government should treat this as a special case outside Fóir Teoranta and the IDA——

Comment on this
Padraig Faulkner An Ceann Comhairle Fianna Fáil

This is a long statement, Deputy.

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Peter Barry Mr. P. Barry Fine Gael

Look at it and say that we want this skill preserved because of its craft and advertising value, indeed its prestige value to the country, and put money into it because that is the only solution.

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Denis Gallagher Mr. D. Gallagher Fianna Fáil

I am sure all of these matters will be taken into consideration before any final decision is taken.

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Peter Barry Mr. P. Barry Fine Gael

I do not think the Minister has any interest in the place.

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Padraig Faulkner An Ceann Comhairle Fianna Fáil

A final supplementary from Deputy Quinn.

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The Minister is paid an enormous salary——

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Padraig Faulkner An Ceann Comhairle Fianna Fáil

A question, please, Deputy.

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Is it not a fact that the Minister is paid an enormous salary, has the staff to make decisions and not to guess at what the Government might or might not do? Is he, or is he not, the Minister responsible and, if so, has he not the guts to say, "Yes, I will save these jobs and bring forward these contracts"? Or is the Minister just there, as everybody suspects, simply to hold the seat and nothing else? The Minister should do his job, not be pretending or hiding behind——

Comment on this
Denis Gallagher Mr. D. Gallagher Fianna Fáil

I have given specific answers.

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The Minister has not given anything. The Minister should bring forward the three contracts instead of hiding behind his civil service brief. The Minister should earn his salary.

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Peter Barry Mr. P. Barry Fine Gael

If I was working in that factory I would not be reassured by the Minister's answers.

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Denis Gallagher Mr. D. Gallagher Fianna Fáil

I do not go around making promises like some people opposite——

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Peter Barry Mr. P. Barry Fine Gael

How about the helicopters in Castlebar?

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The airport in Knock?

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Denis Gallagher Mr. D. Gallagher Fianna Fáil

It will be there.

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Padraig Faulkner An Ceann Comhairle Fianna Fáil

Question No. 8.

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It will cost far more than the saving of jobs in Donegal.

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