Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 8: To ask the Minister for Enterprise, Trade and Employment, further to Question No. 949 of 27 September 2006, the reason grant aid has not been returned to his Department; the steps being taken to recoup these funds; the further reason they have not been recovered to date; and if he will make a statement on the matter. [32163/06]

Micheál Martin (Cork South Central, Fianna Fail)
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This issue is a day-to-day operational matter for Enterprise Ireland and neither I, as Minister, nor my Department has any function in respect thereof. Enterprise Ireland has informed me that the issue relates to a fire that took place at a plant in Rooskey, County Roscommon, in May 2002. As a result of the fire, slaughtering and boning activities in the plant were terminated. A cannery operation survived and continues to employ more than 80 people.

The plant in Roosky received grant assistance from Enterprise Ireland. Consistent with the agency's grant liability policy, contingencies exist for a limited period after payment. In this case, most of the contingency period has expired.

I understand that discussions between Enterprise Ireland and the company on any outstanding liability are continuing and that the company has not returned any grant aid to the agency to date. I am advised that progress is being made in the negotiations, which involve complex legal issues, and that they are expected to conclude in the near future.

Denis Naughten (Longford-Roscommon, Fine Gael)
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I tabled this question because in 2003 a sudden and inexplicable decision was made by Glanbia, which was then proceeding with the development in Roosky, to do a U-turn and invest instead in Edenderry and Roscrea. Concern was expressed at the time that influence was used to transfer the operation from Roosky. I raised this issue with the Minister's predecessor, the current Minister for Health and Children, Deputy Harney, who made a commitment to a certain group that no influence would be used and that funding would not be used to transfer jobs from Roosky to Edenderry.

The Minister and his predecessor said the Government was examining the position on the recoupment of money in the context of the cannery operation and other developments at the Roosky site. In light of this, why is the Department saying it is now considering the issue not in the context of the cannery and the development of that site but in the context of the developments in Edenderry and Roscrea, which were not supposed to be grant-aided and for which no grant aid has been furnished to date because of the transfer of jobs from Roosky thereto?

Micheál Martin (Cork South Central, Fianna Fail)
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My Department is not doing that or saying anything about it.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The Minister should look at his reply.

Micheál Martin (Cork South Central, Fianna Fail)
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The agencies involved are statutory bodies and my Department is not involved.

Denis Naughten (Longford-Roscommon, Fine Gael)
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They are accountable to the Minister.

Micheál Martin (Cork South Central, Fianna Fail)
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Enterprise Ireland is the agency involved and my Department does not get involved in the day-to-day administration of grants or the return thereof. This is fundamentally a matter for the agency. The House has delegated this authority to it and the other industrial development agencies. We cannot delegate authority to the agencies while at the same time running their day-to-day operations. I do not mean that in a derogatory way but we frequently delegate authority and then try to haul it back when an issue of concern arises relating to a constituency or a particular issue. That said, I accept the Deputy's genuine commitment to and interest in securing further employment at the site in Roosky. I understand Enterprise Ireland is also very keen to add to the development in Roosky and some of the negotiations will take on board whatever can potentially be added to the site.

In previous replies reference was made to the significant progress on the pork development side, albeit not at the Roosky site but in Edenderry and Roscrea. It was stated that significant investment was made by the company concerned to increase employment in the latter locations. Neither the Deputy nor Enterprise Ireland can ignore this, bearing in mind that the Deputy's key focus is on the Roosky site. The situation in that regard is somewhat complex. There are issues which are somewhat fluid at the moment and the agency has assured me it is actively considering a range of options.

Denis Naughten (Longford-Roscommon, Fine Gael)
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The reality is that there is a net loss of 150 jobs between the three sites, so jobs have not been created. Is it not the case that the Minister is answerable to the House for the actions of Enterprise Ireland and that €3.4 million has been handed over through his Department by the agency to Glanbia and its predecessors at the Roosky site? Do we not need to get answers as to why none of that money has been handed over to date, and what will be done with it as regards the development of the site in Roosky? Are there specific plans on the table to develop that project? There is some concern the money has been transferred to the amalgamation and the protection of the jobs in Edenderry and Roscrea is to the detriment of Roosky and that should not be used for that purpose.

Micheál Martin (Cork South Central, Fianna Fail)
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The Deputy has the wrong take on this. We should never get to the stage of saying we are giving money to one side to the detriment of another. Grant money is not allocated on that basis. Enterprise Ireland or any agency would wisely work with all of the food companies in Ireland to add as much value as possible, within the jurisdiction. It will continually encourage companies to do added value projects within their portfolios and supports that. It would be wrong to suggest that because something happened in one side nothing should happen in any other. It does not mean——

Denis Naughten (Longford-Roscommon, Fine Gael)
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I am not saying that.

Micheál Martin (Cork South Central, Fianna Fail)
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——-a transfer of one to the other. It should not have to mean that. I am not at liberty to discuss ongoing fluid discussions that are under way between a number of interested parties as regards the Roosky site.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Are there discussions under way?

Micheál Martin (Cork South Central, Fianna Fail)
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That is all I can say at this stage. We are very well aware of the need. All Members of the House, particularly Deputies in the constituency such as Deputy Finneran and Deputy Naughten, have raised this issue on an ongoing basis and are very keen to see development here. The fundamental point, however, is that whereas I am accountable for Enterprise Ireland, a global sum is allocated to the agency and the Department does not get involved in second guessing or validating every grant allocation it makes to client companies. We make inquiries following representations from Deputies, but we do not second guess every individual proposal. There are very good reasons why we do not and why the Oireachtas does not either — and why the Oireachtas has given the agency specific powers to discharge. There is a variety of other ways, through the Joint Committee on Enterprise and Small Business, the Committee of Public Accounts and so on, to pursue these issues as well. Enterprise Ireland is endeavouring a developmental approach to this issue to see what may done to create more jobs in the area.