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Dáil

Ceisteanna — Questions. Oral Answers. - Mostek Ltd., Blanchardstown (County Dublin).

asked the Minister for Industry, Trade, Commerce and Tourism how much of the £5.4 million paid by the IDA to Mostek Ltd., Blanchardstown, has been repaid; the measures the Government or the IDA intend to take to recover the balance; and if he will make a statement on the matter.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

The recoupment of financial assistance given by the Industrial Development Authority in support of industrial projects is a matter for the Authority.

I understand, however, that negotiations have been continuing with United Technologies Corporation, who were the parent company of Mostek Ireland B.V., Blanchardstown, at the time of closure, with regard to the repayment of IDA assistance. The Authority expect to bring these negotiations to an early and satisfactory conclusion.

Comment on this

That is a very unsatis factory answer. The Minister of State will recall that at the beginning of November in reply to a question of mine he said that the Authority expect repayment of a substantial proportion of their outlay on the project, that being an outlay of £5.4 million. Can he say when it is expected the repayment will be made? What steps are being taken to seek repayment of the £5.4 million or a substantial proportion of that money?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

As I said in my reply, the negotiations are at a delicate stage and it would not be wise to forecast when they will conclude. I understand the IDA are confident they will conclude a satisfactory arrangement with UTC in the immediate future.

Comment on this

Do I understand from the Minister of State that there are negotiations proceeding under which Mostek may re-open a plant here? Is that the kind of negotiations he is talking about?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

No, the negotiations I am talking about are in respect of the repayment of a grant.

Comment on this

Will the Minister of State tell us how negotiations in respect of repayment of a grant could be at a delicate stage? What is delicate about recovering the money due? This company have left us. They have left 400 people in Blanchardstown without jobs. What is delicate about negotiations to get the money back? I ask the Minister if I am correct in stating that when pulling out they did not give even five minutes notice to any of their staff, to the Minister or to the public.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

That is not a question.

Comment on this

I am asking if it is true they did not give notice?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

The Deputy repeated that four times since he stood up.

Comment on this

I am asking a simple question. They gave no notice whatever of their withdrawal.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

The Deputy is not making it simple.

Comment on this

If that is so, why are delicate negotiations being conducted for the recovery of £5.4 million? They left 400 people without jobs in the major black spot of unemployment in Blanchardstown.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

I have sympathy with the Deputy in his request for information. It is not my wish to withold information. The decision for the close down was taken by United Technologies Corporation who decided to discontinue semi-conductor business worldwide. I do not defend that reason but it was a decision taken outside this country.

The IDA are carrying out their responsibility to have repaid to them the grants outstanding. They are in negotiation with United Technologies Corporation in respect of grant money due to the IDA. These negotiations are at an advanced and delicate stage and it would not be proper for me to make a further statement.

Comment on this

Does the Minister see any problem in recovering the money?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

I am confident of a conclusion to the negotiations to the satisfaction of the IDA.

Comment on this

Is the Minister aware that his colleague, the Minister for Communications, sent circulars around that area before Christmas, saying that there would be an expansion of work in this factory with a possible investment of £20 million and 500 extra jobs?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

That is a separate question. I am calling the next question.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

I am not responsible for the actions of the Minister for Communications.

Comment on this

Obviously this Minister is not, but the Minister for Communications has been misleading his constituents in the matter.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

That is an accusation against the Minister for Communications. Is the Chair allowing it?

Comment on this

The Minister should not press that point since there were allegations made against himself earlier.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

They were not addressed to me.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

Will the Minister please reply to Question No. 8?

Comment on this