asked the Minister for Industry and Energy the reason there was no consultation by him with the trade unions concerned prior to his announcement of the Government's decision to close Ardmore Studios.

The current and prospective financial position of the National Film Studios of Ireland Limited was such that there was no reasonable prospect of the company becoming viable. This view was shared by the board of the company. The first priority, as I saw it, was to prevent further losses by closure and liquidation as a matter of urgency, and in the interest of protecting employment in the area, to make every effort to establish there a self-sustaining industry. I might add that if I had not taken this action, enforced closure by the company's creditors was inevitable within a matter of weeks. In these circumstances it appeared clear to me that prior consultation with the trade unions would not achieve a viable alternative to the conclusions which I had reached.

When it became apparent to the Minister and the Government that this undertaking was no longer viable, why were the trade unions not brought in and given this information prior to the announcement being made by the Minister?

The situation was such that it was a matter of urgency and action had to be taken. I am sure the Deputy will appreciate that this situation did not arise overnight. The financial position of the film studios was apparent to my predecessor for some time. There was also discussion at board level about it and I am sure the financial position was not a surprise to anyone.

I acknowledge what the Minister says. Surely the Minister will agree that the common courtesy which workers in any undertaking are entitled to, particularly where there is major State investment or prospect of the State bearing further losses, is that the trade unions concerned should be told directly rather than after the event even if the news is irrevocable and of a black kind?

Immediately the liquidator was appointed he had a meeting with the workers about the future of the film studios. My priority and that of the liquidator is to attempt to sell the studios as a going concern and protect employment. The workers are well aware of our efforts along those lines.

In view of the Minister's comment that this situation did not arise overnight, why did he feel it necessary to make the announcement at 6 o'clock on a Saturday evening, two days after the Dáil rose for a month's recess?

I do not see the relevance of when the announcement was made. The Deputy appears to be objecting to the Minister working on a Saturday. I found it necessary.

That is not convincing.

Does the Minister not agree that the workers in this industry should have been made aware of a decision on closure prior to its being announced publicly?

I am taking the best line in the interests of the workers and everyone employed in the National Film Studios at Bray. I am trying to maintain sustainable employment there. I am being asked why I had no discussions with them. A similar request was refused by my predecessor, why I do not know.

Surely the Minister must agree——

Deputy FitzGerald.

Has it not been the view of this and other Governments that employers should be encouraged to give advance notice to workers in cases like this? In what way does the Minister assert that it was in the interests of the workers not to have given them notice?

The interests of the workers are being taken into account by the liquidator and by me in an attempt to have the National Film Studios at Bray restructured and to have sustainable employment maintained. That should be the priority of every member of this House, and I believe it is.

The Minister has not answered my question about prior notification being regarded as desirable.

The National Film Studios at Bray have not closed yet. The workers are still working.

There was no consultation with the workers.

The studios would have been closed by the creditors a week or two after I took office. There have been discussions and meetings with the workers and the liquidator since I took office. The interests of the workers are uppermost in my mind.

Question No. 23.

I want to ask a supplementary question.

I have now gone on to Question No. 23. The Deputy can ask supplementaries on this question.

I want to ask a supplementary question on Question No. 22.

I allowed the Deputy a supplementary question.

I put down six questions on this matter which were disallowed by the Ceann Comhairle on the grounds that the matter was covered in an Adjournment Debate on 28 April. Deputy Desmond put down a question which was similar to my six questions and his was allowed. Therefore I have a right to ask supplementary questions.

The Deputy cannot question that decision now. She is at liberty to check with me and I will show her the file. I am now on Question No. 23.

23.

asked the Minister for Industry and Energy if he will give assurances with respect to the closure of Ardmore Film Studios, Bray, County Wicklow, that in disposing of the assets of the company he will ensure that a film-making studio facility is retained there.

I am extremely anxious that a film-making facility be retained at Ardmore. The Deputy can be assured that every effort will be made to achieve this. I am sure he will accept, however, that a commitment to retain a film-making facility regardless of cost cannot realistically be given.

In view of the fact that we have a film board charged with the responsibility to develop our film industry, would the Minister not agree that in considering the liquidation of the Ardmore Film Studios, if the liquidator is unable to ensure the continuation in operation of the film studios at Ardmore, it is vitally important for our future film industry that at least some part of those studios should be retained for the making of films? Would he not agree that this is vitally important in view of the fact that we have a film board who are trying to encourage the film industry in Ireland?

I accept that it is in the best interests of everybody that a film-making facility should be retained at Ardmore, and I am working towards achieving that objective.

Can I have a guarantee from the Minister that, in disposing of the assets of the Ardmore Film Studios, a portion at least of those studios will be retained for the purpose of making films in Ireland?

Offers have been made. If we arrive at a contract stage, it will be written on the basis mentioned by the Deputy, so that facilities for film-making will be retained.

In view of the importance of the film industry, not only to the image of Ireland abroad but also to tourism earnings in the whole area of north Wicklow, is the Minister considering having consultations with Bord Fáilte and the Eastern Regional Tourism Organisation regarding the desirability of having national film studios situated at Ardmore?

The views of all interested parties have been sought. The view of the Board of the National Film Studios is that it would be more appropriate that money spent on the National Film Studios should be directly invested in film production and that although the establishment of the Irish Film Board is greatly welcomed its available funds are too small to have more than a marginal effect on the studios. In effect, the Board said that whatever money is to be expended should be expended by the National Film Board.

Can the Minister indicate what the annual losses were over the past three or four years?

I may not have that information. I want to give it accurately.

Is the Minister aware that the Committee of Public Accounts fully supported the action taken by him? When the report was placed before this House there was all-party agreement and acceptance of it. That report urged the Minister to take the decision he has now taken.

I have some information. Ardmore Film Studios were purchased by the Government in 1973 at a cost of £.5 million in the belief that this was an essential prerequisite to the development of the film industry in Ireland. The total employment in the company was 46. Total Exchequer grants of £1.5 million were paid since the company were set up. The company incurred losses of the order of £.5 million per annum before grants, due to their inability to attract sufficient business and the lack of a proper capital structure which resulted in heavy interest payments. The losses projected for this year alone were approximately £780,000. Indebtedness to the banks had reached almost £2 million. That puts the loss situation into perspective.

Would the Minister not agree that a studio is as important to a film-making industry as the Abbey Theatre is to playwrights and the theatre industry? In view of the fact that we have the National Film Board, would the Minister guarantee to come back to the House before the assets of the Ardmore Film Studios are finally sold, especially if we will not have film-making facilities in Ireland after they are sold?

I have already indicated to the House that my objective is that film-making facilities will be retained at Ardmore as far as possible, but that cannot be done regardless of cost. I have made that abundantly clear. The objective is that the film facilities at Ardmore will be retained as far as is humanly possible.

Might one gather with accuracy from the Minister's reply so far that any moneys being saved will be translated directly into film-making capacity by Irish film-makers?

In relation to that I can only say that there will be no money saved this year because there was no money provided for the situation in Ardmore Studios.