John Perry (Sligo-Leitrim, Fine Gael)
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Question 285: To ask the Minister for Enterprise, Trade and Employment further to the closure of a company (details supplied) the financial supports this company has received from the State; if another company purchased this company for the book value; if his attention has been drawn to the fact that this company has planning for a state of the art plant on 20 acres in Manorhamilton, County Leitrim and is currently renting a premises; if a directive was issued to put on hold the building on the site; the negotiations and consultations he has had in relation to this company; and if he will make a statement on the matter. [39135/05]

John Perry (Sligo-Leitrim, Fine Gael)
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Question 286: To ask the Minister for Enterprise, Trade and Employment the ministerial orders he has given in relation to the closure of a company (details supplied); if his attention has been drawn to the fact that another company (details supplied) is trying to minimise the redundancy payments to the employees; if maximum redundancy will be paid to the employees; the contractual arrangement which was observed when the sale was concluded from another company; and if he will make a statement on the matter. [39136/05]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 285 and 286 together.

The company in question has received a total of €2.6 million in grant aid since 1983. There is no outstanding grant liability. The company, which was forecasting to grow its business and introduce some research and development activities to its plant, was in discussions with IDA Ireland on supports available for future research and development investments. In August 2005, the company was acquired. The contractual arrangement for the purchase of the company was a matter concluded privately between the purchasers and the owners of the company. However, I understand from IDA Ireland that the purchase price was $54 million. The new owner operates a second manufacturing facility in Manorhamilton, following the acquisition of a mirror actuator business in 2001. At that time, it was proposed to expand this operation. Land was purchased for this expansion and planning permission was received for a new facility. At present, a building which is privately owned, is being leased in Manorhamilton. Plans to invest in the facility and grow the operation in Manorhamilton are continuing in conjunction with IDA Ireland.

I have been notified under section 12 of the Protection of Employment Act 1977, that 120 employees of the company concerned are being made redundant at the Sligo plant. While the company cannot be specific about dates, it expects to relocate its business from Ireland during the spring of 2006 with the redundancies resulting from the relocation to conclude by year end 2006. I understand that it is the company's intention to enter into consultations with its employee council in accordance with the Protection of Employment Act 1977. Following the expiry of the consultation process, the company proposes fulfilling all contractual and statutory notice requirements. It is also planning to provide redundancy terms over and above statutory requirements to all employees who are made redundant. All calculations will be based on years of service with the company.