Ruairi Quinn (Dublin South East, Labour)
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Question 365: To ask the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 121 of 30 November 2006, if he accepts that premises (details supplied) in County Donegal were sold on 1 December 2006 at a time when Enterprise Ireland had not received the up to date accounts it sought in October 2005; if a full repayment of preference shares has been made to Enterprise Ireland; if not, the reason for same; and if he will make a statement on the matter. [42428/06]

Micheál Martin (Cork South Central, Fianna Fail)
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Grant agreements between Enterprise Ireland and companies are a matter for those parties and the Minister for Enterprise, Trade and Employment does not have a direct function in this area.

All funding provided by Enterprise Ireland is subject to a legal grant agreement between the company and Enterprise Ireland. Enterprise Ireland grant aided companies must meet the obligations to creditors and employees in the event of closure or liquidation.

Clubman Omega Limited ceased manufacturing in December 2005, following which, in line with its normal policy, Enterprise Ireland revoked and sought repayment of certain Employment Grants and of the Preference Shares that Enterprise Ireland had invested in the development of the company.

An offer of repayment of the preference shares was made by the company to Enterprise Ireland but, this offer cannot be properly considered by Enterprise Ireland until the agency has actually received up-to-date accounts from the company. The latter have been repeatedly sought by Enterprise Ireland but have not yet been furnished by the company.

The situation regarding grant liabilities is disputed by the company. Enterprise Ireland is considering its response, including possible legal action to recover those liabilities, but in order to duly consider the matter, the agency will need to have sight of the company's accounts.

As regards the factory premises, Enterprise Ireland has no charge over the building and the agency's consent is not required for the sale of the building by the company.

Enterprise Ireland continues to pursue the company to provide it with up-to-date accounts to enable the situation regarding the repayment of preference shares and outstanding grant liabilities to be resolved.