IDA Ireland has been criticised for failing to find a buyer for a factory which has been empty for to years.

The Dail's Public Accounts Committee was told yesterday that, in 1994, IDA Ireland purchased the Klopman textile factory at Gillogue, Co Clare for £5 million in an effort to save 220 jobs at another plant.

However, the value of the Co Clare site has now been reduced to £3.2 million and is proving difficult to sell.

The plant was empty for a number of years before IDA Ireland made its purchase.

The committee was told it costs £275,000 a year to maintain the plant.

Mr John Purcell, the Comptroller and Auditor General, said IDA Ireland's failure to sell the factory was "a departure from the traditional role" of the IDA in serving the taxpayer.

Mr Eric Byrne TD said buying the plant from Klopman had not been "value for money" and he warned the value of the factory would continue to decrease.

Mr Kieran McGowan, IDA chief executive, said two international companies had expressed an interest in the site, but both had pulled out at the last moment.

Mr McGowan disclosed to the committee that IDA Ireland currently had 800,000 sq ft of empty sites in the Republic.

However, he said two thirds of this space was reserved for companies which intended to set up in the near future.

IDA Ireland also had 2,200 unoccupied acres of land, said Mr McGowan. Some of this may be swapped with local authority lands in the future.

Mr McGowan rejected the claim by some members of the committee that there was not a "sufficient spread" of inward investment across the whole State.

As IDA Ireland attracted more European investment, areas outside "the main urban centres would do better", he said.

He was not "very optimistic" about attracting companies interested in employing low skilled or long term unemployed people.

The committee also expressed dissatisfaction yesterday with the procedures for collecting debt by An Bord Trachtala.

Committee chairman Mr Denis Foley said he hoped new procedures, put in place by the trade board recently would improve collection rates.

Mr Oliver Tattan, the company's chief executive, said that after two years the company had a bad debt rate "of just 2 per cent", which he thought was "quite good".

The trade board was questioned by the committee about its decision in 1989 to stop acting as an agent for certain Irish companies in the Middle East.

One of these companies had a contract which made it necessary for An Bord Trachtala to inform it at least 12 month in advance that it would no longer be an agent. This company later took legal action against An Bord Trachtala, which had to settle at a cost of £192,000.

Committee members said this was "unfortunate" and they questioned "how the company handled" the case.