Committee Reports > List of Committees > Dáil > 1966 > Committee of Public Accounts > Interim and Final Report - Appropriation Accounts 1964 - 1965

APPENDIX XIX.

AN FORAS TIONSCAL: REPAYMENT OF GRANTS.

Cléireach,

An Coiste um Chuntais Phoiblí.

At the meeting of the Public Accounts Committee on 30th June, 1966, I undertook to furnish information in regard to repayment of grants made by An Foras Tionscal. The conditions under which grants are made are set out in a legal Agreement with the grantees which provides, inter alia, that the Board of An Foras Tionscal at any time before the payment of the grant is completed may revoke and cancel or proportionately abate the grant or so much thereof as shall not have been actually paid to the Company in the event of any one or more of the following events happening:

(i) if the company shall fail to comply to the satisfaction of the Board, with any of the terms and conditions of the agreement,

(ii) if the individuals who are the original promoters of the company and by whom or on whose behalf the application to the Board for assistance under the Acts was made shall to any extent that in the opinion of the Board is material terminate their association with the company or sell or otherwise dispose of their ordinary shares in the capital of the company,

(iii) if any independent event shall occur which would in the opinion of the Board jeopardise or delay the commencement of the manufacturing operations as proposed,

(iv) if there should be any material change in the basis of the undertaking as proposed,

(v) if an order is made or an effective resolution is passed for the winding-up of the company,

(vi) if a Receiver is appointed over the property of the company or if a distress or execution is levied or served upon any of the property of the company and is not paid off within 14 days,

(vii) if the company shall stop payment or without the consent of the Board cease to carry on its business.

If the (said) grant is revoked or cancelled by the Board the company shall repay to the Board all sums received by the company in respect of the (said) grant and if the (said) grant be abated by the Board the company shall repay to the Board all sums (if any) received by the company in excess of the amount of the abated grant.

To date only one repayment of grant has been obtained. This was the case of Rainbow Plastics Ltd., Dublin and Omeath, where following a claim by An Foras Tionscal upon the Liquidator over the property of the company an amount of £125 was received representing the dividend of 1/3d. in the £ on the Board’s claim for repayment of a grant of £2,000 which had been made to the Company. The sum of £125 was brought to credit in 1965/66 under miscellaneous Appropriations-in-Aid in the Industry and Commerce Vote.