Robert Troy (Longford-Westmeath, Fianna Fail)
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584. To ask the Minister for Arts, Heritage and the Gaeltacht if she will confirm whether the State-owned Arramara Teoranta has been sold to a Canadian company (details supplied) and if she will outline the terms and conditions of sale; and if she will make a statement on the matter. [42928/14]

Joe McHugh (Donegal North East, Fine Gael)
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I wish to refer the Deputy to my reply to Parliamentary Question No. 3 of 16 July 2014 in relation to this matter. As I stated in that reply, the sale of Údarás na Gaeltachta's shares in Arramara Teo to a Canadian company was approved by the board of Údarás on 1 March 2013, subject to Ministerial approval being obtained and legal details being agreed. Following an assessment of the proposal, Ministerial approval was granted for the sale on 29 July 2013, subject to a number of specific conditions being fulfilled. I am advised that the sale of Arramara Teo was concluded on 7 May 2014 and that Údarás na Gaeltachta is satisfied that the conditions laid down have been fully complied with.

I am satisfied that the best value that could be obtained for Arramara Teo was achieved through this course of action. As a multinational company based in Nova Scotia, Canada with significant experience in the seaweed processing sector, I am satisfied that the company in question has the expertise to develop Arramara Teo and secure its long-term future for the benefit of its stakeholders. I believe that this strategic partnership will secure Arramara's future in Connemara and will result in the development of the seaweed processing sector here.

While I am unable to give the complete details with regard to the terms of the sale of Arramara Teo because of the confidentiality provisions of the contract, I am advised by Údarás na Gaeltachta that continuity of supply to Arramara's existing Irish customers is assured. One of the conditions of the sale agreement between Údarás na Gaeltachta and the company in question related to existing Irish customers of Arramara Teo being guaranteed supply of product on reasonable terms and conditions into the future. In that regard, Údarás na Gaeltachta has confirmed that the sale agreement provides for the protection of future supply to existing Irish customers of Arramara Teo, with no increase in price for Year 1 and with prices advantageous to the Irish customers as against international customers being secured. It is also understood that the company in question has covenanted to continue to supply the Irish customers. In the event of a breach of covenant, Údarás na Gaeltachta has advised that penalties would apply.

In overall terms, it is envisaged that the sale of Údarás na Gaeltachta's shares in Arramara Teo will benefit the State through a cash consideration to Údarás na Gaeltachta, through a significant investment in Arramara Teo and through the development of the seaweed sector into the future with benefit accruing to the State as a result of increased economic activity.