Cecilia Keaveney (Donegal North East, Fianna Fail)
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Question 595: To ask the Minister for Enterprise, Trade and Employment the situation in relation to a company (details supplied) in County Donegal paying back moneys that may be owed to State agencies further to its relocation out of Ireland; and if he will make a statement on the matter. [14554/07]

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 their obligations to creditors and employees in the event of closure or liquidation.

The company in question 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 fully considered by Enterprise Ireland until the agency has received up-to-date audited accounts and other relevant financial information from the company. These 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. However the agency will need to have sight of the company's accounts before making its final decision. 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.