NET losses, jobs and restructuring
The Minister said NET’s unaudited 1980 loss exceeded £55 million. Asked about employment, he acknowledged likely job losses but gave no figure; he said the Government would take the Oireachtas Committee’s recommendations into account when considering NET’s future.
asked the Minister for Industry, Commerce and Tourism the estimated profit or loss made by NET for each of the last five years; and the estimated profit or loss for the present year.
Comment on this
The information requested by the Deputy in connection with Nítrigin Éireann Teoranta up to the period ended 31 December 1979 is contained in the annual accounts of the company, which are laid before the Houses of the Oireachtas in accordance with the NET Acts.
I understand that the unaudited estimated loss for the year ended 31 December 1980 is over £55 million, which consists of a trading loss of £19.7 million — after taking into account financing charges of £26.7 million — depreciation charges of over £11 million, a book currency translation loss of over £18 million, in respect of the conversion of the company's outstanding borrowings in foreign currencies to Irish pounds at the exchange rates prevailing on 31 December 1980 and a write off of £6.6 million in respect of losses at Arklow Gypsum.
I would regard it as premature at this stage to give any indication of the estimated profit or loss for the year ending 31 December 1981.
Comment on this
Is the Minister in a position to indicate to the House the likely impact these disastrous figures will have on employment in the Arklow area and generally amongst NET employees throughout the State?
Comment on this
The whole question of the future of the industry is at present being considered. I think it is accepted that there will be job losses. I could not put a figure on them at present but there would seem to be an indication that there will be job losses.
Comment on this
In view of the fact that it was the Joint Committee on Semi-State Bodies who effectively unearthed and displayed to the public the full extent of the mismanagement of NET is the Minister in a position to indicate to the House whether the Government will go back to that committee before any final decision is taken with regard to the restructuring of or redundancies in that company? Will the Government seek the opinion of that committee who played such a critical role?
Comment on this
The Minister has made some public announcements in relation to the position of this company. He has had consultation with some experts in relation to the matter and I am sure that the recommendations of the Oireachtas Committee would have to be taken into account by the Government in considering the future of NET.
11.