No political meddling in Rennicks grant applications Harney

Inquiries made in the Department of Enterprise, Trade and Employment and the industrial development agencies have found no evidence of any political interference in relation to grant applications from the Fitzwilton subsidiary, Rennicks Group Ltd, the Tanaiste, Ms Harney, has said.

Replying to a Dail question from Mr Richard Bruton yesterday, Ms Harney said no evidence had been found of any meeting between directors of Rennicks and Mr Ray Burke, who was minister for industry and commerce from November 1988 to June 1989. The Tanaiste also said searches in the Department had failed to find any ministerial diaries relating to Mr Burke's period in office.

The Tanaiste gave an extensive written reply to Mr Bruton's questions and included copies of relevant reports and documents. Her Department subsequently released a report drafted by Mr Kieran McGowan, CEO of IDA Ireland, on two Japanese companies connected with Rennicks.

She told Mr Bruton that in 1987 Rennicks applied to the former IDA for financial assistance towards expansion. There was no record of any meeting between Rennicks and the then minister for industry, Mr Albert Reynolds, she said. The IDA approved the grant in October 1988. Mr Burke became minister the following month.

While £240,000 in grant aid was approved, only £180,000 was paid. The grant was approved in accordance with normal policy and conditions, Ms Harney said.

In 1989 there were talks between Rennicks and the IDA on a joint venture in which Rennicks/ Fitzwilton were the minority partner, with Seibulite (Mfg) Ltd, a Japanese company. In October 1989 the IDA approved £4.2 million aid for the project in Kilcoole, Co Wicklow. Because of planning objections, it did not go ahead. No grants were paid.

Ms Harney said that, in her capacity as minister of state at the Department of the Environment, she had been involved in a meeting with officials to discuss the problems which had led to the loss of the project. She had received a letter from the then minister for industry and commerce, Mr Des O'Malley, in December 1990. He had received a letter from a Fitzwilton director, advising him that because of the planning permission difficulties, the project was unlikely to go ahead.