Why appoint a receiver to Dan Morrissey now when business is good?

Fine Gael TD for Carlow, Pat Deering, has today (Tuesday), asked the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, why AIB have moved to appoint a receiver to Dan Morrissey (Ireland) Ltd at this time.

“Dan Morrissey (Ireland) Ltd is a functioning firm; they have €4.5 million worth of confirmed orders on their books and they could have as much as €8 million worth of work to complete over the coming months when last minute orders are taken into account.

“What I want to know is; why now? Like most, if not all, construction related companies, Dan Morrissey (Ireland) Ltd has come through a very difficult six years as this recession took its toll on the construction industry, but they have not been hiding in the long grass. The company has repaid €19 million to the bank in the last six years; they have been upfront and proactive.

“As the news broke last Wednesday I contacted AIB CEO, David Duffy who informed me by letter that the bank would only appoint a receiver as a last resort, when all viable alternatives have been exhausted and where the banks position is materially at risk.

“Morrissey’s are one of the biggest independent suppliers of materials to the Irish construction industry and the firm contributes hugely to the local economy; 160 people are employed directly putting €6 million annually into the local economy, they pay €1 million rates to Carlow and Wicklow County Councils, they spend €3 million annually on fuel and they have a huge knock-on impact on the rest of the economy.

“The Minister outlined to me that examiners are appointed in situations where the company in question has real options. He assured me that every measure will be taken by Government to ensure that the impact on employees in Carlow will be minimal.

“I am conscious of the anxiety this ordeal has caused for workers, their families and the community in general. It is difficult to assess the real impact until the examiner is appointed. It is clear however that the Minister recognises the value of Dan Morrisey to Carlow and I intend to continue to ask the important questions as this issue is resolved.”