IDA paid over €31m to firms that quit

OVER €31 million in IDA grants was paid to 33 companies which pulled out of Ireland last year, the latest figures reveal.

IDA figures, released to the Irish Examiner, also reveal €4.2m in grant repayments is still owed to the agency by firms which have closed their Irish operations.

Over €3m of that total is owed by one multi-national, Celestica, which closed in May 2003 with the loss of 300 jobs.

Most of the IDA-supported companies which closed last year do not have grant liabilities under the terms of their contracts and are not obliged to repay grants.

For that reason, just over €9m of the €31m spent on the companies concerned was repayable to the IDA. Six companies between them now owe the IDA the outstanding €4.2m. The rest has been repaid.

Celestica, which was based in Swords, Co Dublin, owes the greatest outstanding amount. IDA records show that 18 months after the closure of its Irish facility, Celestica, which this month posted revenue growth of 33% to $2,176m (€1705m), has not yet paid anything towards its grant repayments.

The Canadian-based technology firm received €3.6m in IDA funding the largest grant of any of the firms to leave last year. Under its contract with the IDA, €3.1m of that grant was to be repaid.

Other companies with outstanding debts including Powerscreen Ltd, Vertex Interactive and Plaut IT Services Ltd owe another 1m between them.

An IDA statement said outstanding repayments could still be due for a number of reasons, including "a settlement figure still being negotiated" and "identification of liability responsibility".

However, a spokesperson said most repayments "would be completed within a couple of months to a year".

The spokesperson denied the 18-month delay in Celestica's repayments meant there was a dispute over the money. "We are still in negotiations. It doesn't mean there are any problems with them," the spokesperson said. When asked why repayment obligations were not set in concrete when they first moved to Ireland, the IDA said every grant contract contained different terms depending on circumstances.

But Fine Gael enterprise spokesman Phil Hogan called on the agency to introduce fixed term contracts to ensure prompt payment from any multinational pulling out of Ireland.

"The IDA should ensure a refund of Irish taxpayer's money within a defined period of time.

"It's totally unacceptable on the part of the taxpayer that it could be up to 18 months before that money is repaid," he said.

Celestica's European spokesperson did not respond to messages left yesterday while a spokesperson in the company's Canadian headquarters did not reply before publication last night.