Mostek grant repayment
Mac Giolla sought details on recovering the IDA’s £5.4 million in assistance after Mostek closed, leaving 400 people unemployed. Collins said negotiations with parent company UTC were advanced but delicate, gave no timetable, and expressed confidence in a satisfactory repayment arrangement.
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
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
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
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
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
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.