Ann Phelan (Carlow-Kilkenny, Labour)
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I thank the Ceann Comhairle for affording me the opportunity to speak about this most unfortunate issue. Dan Morrissey Irl. Limited is a company based in Carlow and Wicklow that is involved in the quarrying and concrete industry. It is a family-owned business servicing the construction and agricultural industries in the south east. The Morrissey family has ensured employment for hundreds of individuals and their families over the years through direct and indirect employment. It is also a great supporter of local organisations in Carlow town.

On Wednesday of last week, I was deeply saddened to hear that Dan Morrissey Irl. Limited had gone into receivership. The laissez-faireand somewhat cavalier attitude of AIB in this instance leaves a lot to be desired. To the workers' dismay, they turned up on Wednesday morning to find the gates of their employment had been locked. The workers received no explanation or information and had to rely on the local media for any information they were able to get. They were left in complete limbo as to the future of their jobs. The workers simply cannot understand why a bank in which this State has such a large stake can do this to them and I have some sympathy with them. The loss of 160 jobs from a local economy would be a crushing blow to any community let alone one that has already suffered ravages from the loss of the sugar beet industry and the Braun factory some years ago.

With the workers, I welcome the court decision last Friday to appoint an interim examiner until 14 July. Most of the workers have young families to support and mortgage repayments among other debts. The domino effect that this would create in Carlow would be significant. The fact that an interim examiner has been

appointed to Dan Morrissey Irl. Limited would perhaps indicate that there is a possibility of some resolution as I understand that the company does have over €4.5 million

worth of contracts on hand with blue chip clients like Carlow County Council. I fully support any measure that can be put in place that will assist in the survival of this company. We need to ask what we as public representatives can do to help ensure the sustainability and survival of this company which is so vital to Carlow and the south east as a whole.

Peadar Tóibín (Meath West, Sinn Fein)
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In the past three years, I have highlighted at committee level and in this Chamber the plight of functioning businesses that are in debt distress. A large number of other commentators, including Morgan Kelly, have indicated the difficulties that SMEs around the country are experiencing with mortgage distress and what this is doing to the economy. The issue of debt distress is enormous. It is of iceberg proportions. For every bit we see, there are nine or ten more companies in this country under the surface dealing with debt distress. We are seeing functioning businesses being closed every week and hundreds of other businesses having their investment or spend literally paralysed with the result that they have a millstone of debt around their necks. It is a significant brake on the economy. The growth rates the Government is forecasting will not happen unless it deals with this issue. The problem lies with the Government's priorities. The banks are the Holy Grail of Government policy and the rest can get stuffed.

Morrissey Quarry is a medium-sized business in Carlow with 130 staff on its books. It pays an annual wage bill of €5 million into the local economies, €500,000 in rates and hundreds of thousands of euro in vehicle and fuel taxes. It is a functioning firm and as has been noted, it has contracts worth millions of euro on its books waiting to delivered upon. It is in trouble because of a number of acquisitions it made in the noughties and because it is at the end of a line of credit where other creditors have refused to pay it the necessary funds as well. The workers need to know what the Government will do to make sure that a functioning business can be allowed to restructure its loans in a situation where it can be nurtured out of this debt. What will it do to ensure these businesses can remain in place, delivering their services properly, keeping these people employed and paying their debts in the long run? What will the Minister do?

Pat Deering (Carlow-Kilkenny, Fine Gael)
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I thank the Ceann Comhairle for selecting this topic, which is very important in Carlow, Kilkenny and Wicklow. The issue is the appointment by AIB of a receiver to Dan Morrissey Irl. Limited last week. Thankfully, on Friday evening, common sense prevailed and the High Court appointed an interim examiner until this Thursday when, hopefully, the appointment will be confirmed for 100 days.

As has been stated previously, Dan Morrissey Irl. Limited is primarily a Carlow company with operations in Wicklow and other locations. The company was established by Dan Morrissey in the 1930s, although the family's association with the construction materials industry can be traced back many generations. A family-owned and managed business, it is one of the biggest independent suppliers of materials to the Irish construction Industry. Its business includes the supply of quarry products such as ready-mix concrete, concrete blocks, aggregate, tarmacadam and roof tiles. These are sold extensively across the country but especially in Dublin and the south east. The company's vast experience and knowledge and its reputation for quality products has made it one of top suppliers of quarry products in the country. Like most, if not all, construction-related companies, it has come through a very difficult six years since this recession took its toll on the construction industry. However, things are looking up, the future does look brighter and there are signs, however small, of recovery in the construction industry. Dan Morrissey Irl. Limited has €4.5 million worth of confirmed orders on its books. This allied with the quick turnaround telephone orders that come in hourly mean that it could have as much as €8 million worth of work to complete in the coming months.

I am amazed that AIB has moved in at this particular time. It begs the question "why now?" Why did it not do this not last spring when the company's order book was depleted and the going was tough? Why wait until there are positive signs - green shoots as we might call them? Look at the value of confirmed orders, many from local authorities. The company supplies its product to ten local authorities around the country. Regardless of whether it was in the days of the Celtic tiger or these less prosperous times we live in now, the construction industry has boomed in the summer months. Again, I ask why AIB is moving at this stage.

Dan Morrissey Irl. Limited employs 160 direct employees putting €6 million in wages annually into the local economy and an estimated similar indirect amount. It pays €1 million in rates to county councils in Carlow and Wicklow and it spends €250,000 monthly on fuel. It has enough deposits of raw material to meet its current demand for at least another generation, which is significant.

When this news broke last Wednesday evening, I contacted David Duffy, the CEO of AIB. To say the least, his response was disappointing - a standard copy and paste letter. It was the same reply he sent to the Cathaoirleach of Carlow County Council when a special meeting was convened. He said that he had exhausted every possible avenue to ensure a receiver would not be appointed. I understand that trying to ensure that taxpayers get value for money is difficult, but the big question we must ask is why AIB is moving in at this moment in time when the company is in its busiest season. Why did the bank not move last January or February?

John Perry (Sligo-North Leitrim, Fine Gael)
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I thank the Deputies for raising this matter. My understanding is that following the appointment of a receiver last week by the bank concerned, an interim examiner was appointed by the High Court to the company in question on 20 June. I believe examinership is a good option for companies that have real prospects for the future but find themselves in financial difficulty at a point in time. Examinership is, however, a balanced procedure, taking into account both the interests of the ailing company and the rights of the creditors and giving the courts a role in ensuring a fair and appropriate outcome.

As I have indicated, I understand the High Court appointed an interim examiner to the company on foot of an ex parteapplication on 20 June. The High Court fixed 26 June for the hearing of the petition and ordered that notice be given to a number of interested parties. It is a requirement of the Companies (Amendment) Act 1990 that a court cannot appoint an examiner to a company without giving creditors an opportunity to be heard. As the matter is before the court, the Deputy will appreciate that nothing should be said this evening that would be seen to interfere with this process.

As the matter is before the court, the Deputies will appreciate that nothing should be said in the debate that would be seen to interfere with this process. The court will have the final say in the appointment of an examiner and we must be careful to respect this.

I am conscious of the anxiety the appointment of an interim examiner to the company concerned creates for the workers involved and their families, as well as their local communities. General employment rights information is available to employers and employees by contacting the workplace relations customer service at 1890 808090 and on its website www.workplacerelations.ie.

I have been informed by Enterprise Ireland that it has had limited engagement with the company concerned. In 2007 the agency paid the company a €4,500 Enterprise Ireland environment management grant. Although Enterprise Ireland does not fund companies to assist them to trade on the domestic market, its potential exporters division was in contact with the company to discuss exporting options and understands it is not currently exporting. The agency, therefore, was not in a position to assist.

Employment retention and creation continue to be our primary objectives and we have worked hard to create the improved economic conditions which will support the maintenance of existing jobs and the creation of new ones. A robust economy capable of capturing new opportunities and sustaining jobs requires a medium to

long-term vision. An Action Plan for Jobs is a key pillar of the delivery of that goal and the Government has focused on creating a supportive environment for businesses operating in Ireland. Enterprise development agencies, under the aegis of my Department, have been to the fore in delivering on the commitments set out in the plan.

We consider it important that the impact on employment in County Carlow should be minimised and the State enterprise agencies and the Carlow Local Enterprise Office will continue to make every effort they can to develop new employment opportunities. Enterprise Ireland activity is focused on the creation of new jobs. The LEO has responsibility and it is up and running.

In addition to marketing County Carlow for new investment, IDA Ireland works with its existing client companies in the county with a view to encouraging them to grow and embed their business in the county. IDA Ireland has strong relationships with all its client companies in County Carlow and works closely with them to ensure their long-term sustainability and encourage their growth, development and continuing reinvestment in their sites. The primary opportunity for regional locations is in respect of the existing client base and potential further investment.

I am confident that the measures outlined in An Action Plan for Jobs, together with other policies and initiatives being pursued by the State agencies in County Carlow, will continue to support enterprise development and provide employment opportunities. The agencies will continue to work closely with each other and local interests to support an integrated approach to job creation in the county.

Ann Phelan (Carlow-Kilkenny, Labour)
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I understand the Minister of State's response and at this stage all we can do is rely on the court to appoint an examiner to give the company protection. I hope that will happen. When the Minister returns from his trade mission to Beijing, we would welcome a meeting with him to see what can be done because it is much easier to protect what is there than to try to create something new. Approximately 160 jobs are involved and many people are indirectly employed in the area. We saw this when the sugar plant was closed. The impact of the closure was felt not only in Carlow town but throughout the south east. The dogs on the street were shouting that we had to do something about the sugar industry at the time. I understand we cannot intervene in the context of the courts, but we, as public representatives, who are representing the workers have to be seen to do something. I thank the officials from the Department of Social Protection who met the workers with me in the Dolmen Hotel in Carlow last Friday. I thank the Department for being proactive in outlining their entitlements and updating their files as they would have had to wait for weeks for benefit if the unfortunate had happened.

Peadar Tóibín (Meath West, Sinn Fein)
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This firm has been negotiating with AIB. I understand its representatives have sought restructuring of the firm's debt, either through a write-down or extending the term of the loan or part of it, but these requests have been refused. That is what has led to the current problem. This is particularly hard to swallow, given that AIB was saved on the back of the tax dollar of every citizen and other companies and individuals such as INM and Mr. Denis O'Brien, etc., have received massive write-downs. None of this process is transparent and it is costing jobs and unfair. It is also not conducive to a healthy, functioning economy. A system is needed to solve the problem of functioning businesses laden with debt. They need to be enabled to separate themselves from the debt. The Minister has pushed responsibility for the future of these jobs to the court, but he is a shareholder in the bank and could use that leverage to determine its policy in the future. He could also create a system to separate the debts of functioning businesses and ensure there was a proper restructuring process. If a business is functioning, making a profit and has orders to beat the band, as the other Deputies said, there is an onus on us to save the functioning element of the business from the debt. That is where the responsibility lies.

Pat Deering (Carlow-Kilkenny, Fine Gael)
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I thank the Minister of State for his reply, as general as it may have been. I understand why it was general, but the major question that needs to be answered, as I outlined, is why AIB has moved in at this stage and why not last January or February when there were difficulties in the marketplace, the weather was bad and the company could not do the work it is doing currently? Was the bank trying to protect somebody or was another investor waiting for it to intervene? This is a viable company which has been dealing with the bank, as Deputy Peadar Tóibín said. Its representatives have not been putting their heads in the sand for the past few years. My understanding is that in the past six years they have repaid €19 million to AIB. They did not put their heads in the sand and tell it to go away. They have been up-front with it. It is important that the jobs are protected and that we get answers as to why the bank moved in at the busiest time of the year when the order books are full and a great deal of work is ongoing and did not do so last spring.

John Perry (Sligo-North Leitrim, Fine Gael)
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I appreciate the concerns of all the Deputies and everyone involved, but the court will have the final say in the appointment of an examiner and we must be careful to respect this. The High Court has fixed 26 June for the hearing of the petition in order that notice be given to the interested parties. We must allow this process to happen. Clearly, the contributions of the Deputies and due diligence relating to the company and so on will be apparent in the court's judgment. The court has the final say in the appointment of an examiner. There will then be 100 days for everybody to work and see what can happen. Ultimately, the Government has no role in the matter whatsoever. It is not involved in the day-to-day operations of a bank; that is not our job either. The court will have the final say in the appointment of an examiner and all we can hope is that every consideration will be given to the company. The fate of the jobs and whatever else will be decided during the 100 day period of reflection. The files will be considered and, ultimately, it will be the call of the judge.