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Normal View

Dáil Éireann debate -
Friday, 12 Feb 1954

Vol. 144 No. 3

Private Members' Business. - Sale of Tramore Property—Motion.

I move:—

That, in view of public uneasiness caused by the sale of An Bord Fáilte property at Tramore by private treaty to three private individuals at a much lower figure than possibly might have been obtained if an opportunity had been given to the public to bid at a public auction or by tender, Dáil Éireann is of opinion that a Select Committee of the House should be set up to investigate all the facts of the sale and to report back to the Dáil.

This motion was tabled with a view to having a full discussion in this House, so that Deputies would have an opportunity of saying whether or not they believed that the facts they heard during the discussion would justify their setting up such a committee. The motion was put down by me not from any narrow Party political point of view; it was put down by me as a public representative of a constituency at the request of a local authority in that constituency. That request was conveyed to me and to the other Deputies of the constituency of Waterford by the unanimous wish of the town commissioners of Tramore. The members of that body hold different shades of political opinion. As far as I know there was no Party politics motivating the commissioners but a sincere desire that the full facts of the sale of certain properties at Tramore should be investigated and that the whole country should have an opportunity of judging whether or not the sale, including the manner in which it was carried out, was justified.

I suggest to the Minister for Industry and Commerce that it is just as essential for him as it is for the people of Tramore or anywhere else that all the facts of this case should be made public, that this committee should be set up. They should have power to examine every detail, every transaction, every letter in connection with the sale and they should publish, for the whole country to see, their considered opinion—whether it be that the sale was properly constituted, that it was an advisable act, and that it was done in the public interest, or whether they find contrary to that.

I do not intend to suggest that there is any bribery or political corruption in this sale. I am suggesting that it was an ill-considered move, that the Minister was induced to do something that should not have been done, and that it is in the public interest that when such a thing happens an investigation should follow, so that, even if no remedy for the particular act follows from the investigation, it will for the future act as a deterrent to similar actions taking place. The Minister and his office should, I suggest, be like Caesar's wife, above suspicion. I do not wish to attribute to him any question of suspicion in this case, but I suggest to this House that the facts are such that an investigation is desirable and that some conclusions should be come to by the committee and should be published, to assure the people of the country once and for all that public funds and public property held by the Government for the people of the country will be administered and will be used to the advantage of the people as a whole, with no particular private gain to any individual or any group of individuals.

I ask the Deputies who are interested to listen to this, irrespective of what political views they hold, as just an ordinary business transaction, and to say to themselves: "If that happened in my ordinary private life, what would be my view of it?" and to vote, not according to the Party to which they belong, but according to conscience on the matter. I would appeal in particular to my colleagues in Waterford constituency to take part in this debate, to express their views, and to appeal to this House for support for this motion so that, once and for all, the matter can be finished with.

I will give in very brief detail an outline of the facts as I know them. Property was held at Tramore estimated at a value of £84,550 by An Bord Fáilte. A decision had been come to by the previous Government that it was desirable that properties held by the Tourist Board should be disposed of. That Government, acting on that decision, did dispose of a considerable amount of property throughout the length and breadth of this country but this particular property of Tramore had not been disposed of at the time when the inter-Party Government went out of office. The present Minister on taking up his position indicated that while he did not agree with that decision because of the fact that so much of the property had been disposed of it would not be desirable to alter it and that he intended to continue that policy. The property at Tramore was finally sold. It is on the question of how it was sold that the motion is down.

I suggest that there are three questions which Deputies should put to themselves: (1) Was the sale carried out in the normal way; (2) were there any circumstances, if the sale was not carried out in the normal way, to justify any change in the method of procedure of selling and (3) was the best possible price got for the property and were the interests to whom the property was sold the best interests in the long run when viewed from the point of view of tourism. I think that is a very ordinary and very simple series of questions for anyone to put to himself and give a decision on.

On No. 1, as to whether the sale was carried out in the normal way, I would say this—and I suggest I cannot be contradicted—that this was the only property sold by the board that was sold without having been first offered for sale by public auction. I am well aware that on two occasions property held by An Bord Fáilte was sold by private treaty, having first been offered by public auction at which the bids made did not apparently reach the reserve fixed by the board. The property was then withdrawn and later, as a result of private negotiations, the sale took place. I suggest that in every other case in which property held by the board was sold an opportunity was given to those interested to bid for it in the public market up to whatever figure they thought represented its value.

The Minister, replying to a series of questions put to him by various Deputies, and particularly Deputy Flanagan, in February, 1953, indicated that his general view was, prior to the sale, that it should be a sale by public auction. I can quote from the reports statements made by the Minister in this House that that was his belief at that time. I can also quote from the Waterford Star of January, 1953, which published the report of a meeting of the town commissioners dealing with the sale of this property. At that meeting, letters were read from An Bord Fáilte indicating to the town commissioners that they could be assured that the sale would be by public auction. In the same paper there appears a report made by members to the town commissioners, who are not politically opposed to the Minister, to the effect that at a public meeting in the town of Tramore he had made statements assuring the people of Tramore that if there was a sale the public would have an opportunity of bidding. I think all that establishes that there was the direct intention up to a certain point to have the sale by public auction.

I am informed that the owners of certain property, which was taken over by the Tramore Development Company, were assured that if ever this property was to go back into private hands, they would be given the opportunity of redeeming it at a value roughly corresponding to the compensations which they had been paid for it, or at least that they would be given the opportunity of bidding for it in the public market.

I now propose to give some of the facts in regard to this case. This property was sold to three private individuals by private treaty, negotiated between An Bord Fáilte and themselves, for a sum of £22,500, roughly one quarter of the estimated value of the property. The estimate that I gave of £84,550 was not made by me but was given in this House by the present Minister. Therefore, we find that, at one quarter of its estimated value, this public property held in trust by An Bord Fáilte for the people of Ireland was disposed of to three private individuals. It was not until the sale had been completed that the people of Tramore and other people interested knew of what had happened. They had been assured that their property would be sold by public auction. They had indicated that they were interested in it and were awaiting the public auction, and then learned one morning from a public announcement that the property which they desired to purchase in the interests of the people of Tramore had been purchased not by a company but by three private individuals at a price representing one quarter of its estimated value.

This property consisted of land and of buildings. One portion of the buildings was what was formerly a summer camp or a summer house for St. Joseph's Boys' Club. This was a charitable organisation formed by certain people in Waterford City, the object being to send young boys, who could not afford to take a vacation themselves, to the seaside for a period each year. That was a laudable object. Therefore, Deputies will agree that the building was being used for a laudable purpose. It was acquired in the public interest by the Tramore Development Company for a sum of money, by way of compensation to the trustees of the society who owned it. They were assured that if ever it was to revert back to private ownership they would have an opportunity of purchasing it to continue the work in which they had been engaged. That organisation was willing and interested in making a bid to secure its former property as, I say, it was anxious to continue the work in which it had been engaged prior to its purchase by the Tramore Development Company. There was an urgent need for the continuation of that work, and I understand from certain members of the society that they had so indicated to An Bord Fáilte.

There was a garage owner in Tramore carrying on a substantial business whose property was acquired. He informed me that he also had been assured that, should the occasion arise, he would be given an opportunity of bidding for it. Not only were the members of the St. Joseph's Boys' Club and the garage owner deprived of their right of again securing the property which they formerly held, but the Waterford County Council acting, as they believed, in the public interest through the commissioner appointed to act for the council, gave to the Waterford Development Company two acres three roods and 38 perches of land which they owned. They did so, believing that it was in the interests of tourism that the land should be surrendered to the company that had been established in Tramore.

That was in consideration of a sum of £170, a nominal sum. The members of the Waterford County Council surrendered their rights, but they wished, should the property ever revert to any private interests, that they should have an opportunity of taking over the land which they had given. It is a fact that since this land was sold to three private individuals the Waterford County Council, on behalf of the Tramore Town Commissioners, made application for a portion of the property to be used as a parking-place for the cars of tourists visiting the town, and the conditions under which they were given the property by the present owners were such that a sum of £870 for a stretch of land roughly 30 yards long by 30 feet deep had to be expended by the council so that the town commissioners in Tramore could carry out work essential to tourism.

The Minister made the point that one of the reasons which induced him to change his mind about consenting to the sale of this property by private treaty was that the people who were thinking of purchasing the property were so well known to be interested in tourism that it was desirable that they should secure it rather than that the risk should be taken of some outside body securing it at public auction for personal gain. I do not wish under the shelter and the privilege of the House to make any claims against the interests of the three individuals who purchased the property so far as their wish to develop and foster tourism in Tramore is concerned. From my knowledge of them—some of them I know personally—they are quite respectable and responsible people but I suggest that they are three private individuals and that the purchase was motivated by the fact that here was value for their money and here was a likely return in the form of yearly dividends. I cast no blame on them for taking that view. It is a natural everyday thing for people to look at a proposition in that way but I suggest that when the Minister states that he selected these because they and they alone were the people so interested he is guilty of a misstatement of fact.

It must be well known to the board and to the Minister that, prior to the sale, the town commissioners of Tramore, either as a body as town commissioners or as individuals, were prepared to bid for this property. That body comprised of men of standing, of money and of responsibility, were prepared to join together and form a company to purchase this property and use it in the interests of tourism and of the people of Tramore without any personal gain. I can give the names of distinguished people, of people who carry on extensive business in the City of Waterford and the area around Tramore who are members of the town commissioners and who have assured me that they were prepared—if they could not do it as town commissioners to do it as private individuals—to put up their own money in the interests of tourism. I suggest that they were deprived of the right to do that by what happened. I suggest that all the circumstances should be examined to see whether blame can be apportioned for what happened, so that in the public interest never again will such a thing give rise to the justifiable suspicion that something underhand or careless has taken place.

Two significant facts have taken place since the property was sold which do not indicate any particular desire on the part of the three people who now own the property to encourage tourism in Tramore. Almost immediately on the property going into the possession of these three private individuals the Irish Countrywomen's Association which had rented from An Bord Fáilte a large plot of ground, were notified that they were required by the new owners to give immediate possession of that property. In that ground—roughly an acre or an acre and a half—I understand the Irish Countrywomen's Association had planted thousands of bulbs which would be in flower around the Tóstal period, but the Irish Countrywomen's Association were compelled to root up these bulbs and to leave the property free for the new owners. Does that indicate any particular interest in seeing that Tramore was made beautiful, developed and made interesting for visitors? I suggest that that act can only be construed as indicating a desire quite contrary to any desire to encourage tourism.

I am also told that buildings in this new property are now being used against the interests of hoteliers in Tramore in relation to catering for wedding breakfasts and various other functions which would normally be a source of income to the people who own property and pay rates in Tramore. There is not, I suggest, one single thing done by the new owners that can indicate any justification for the confidence reposed in them by An Bord Fáilte and the Minister in giving them the property as custodians of the interests of tourism in County Waterford. I would feel that this House would be doing a sensible act by appointing 15 members drawn from all sides and saying to them: "There is something to be investigated. We suggest to you that you act for us, you sift through the various pieces of correspondence, you inquire into all the facts, and that you come to a decision which will be sent back to us here so that not only are the facts known and made public but all question of suspicion shall be cleared from the Minister and from the board and that the people of this country can be assured that any property held in trust by his Department for the nation will be administered and sold if necessary in the very same manner as it would be had it been his personal property."

I second the motion and welcome this opportunity. I feel that the House in general should welcome an opportunity of this kind when there is a matter of such vital importance and such a great principle involved as we have to discuss on this motion tabled by Deputy Kyne. I consider that if we had an indication from the Minister as to whether he was prepared to accept the motion which has been so ably moved by Deputy Kyne probably most of the comments that could be made in this House on this matter could be best made and have more effect before the Select Committee of the House which would be appointed to investigate it should the Minister decide to accept this motion.

This is really a matter in which the House should very seriously give thought to the appointment of the committee suggested by Deputy Kyne because there are two very important matters at stake. Number 1, a Minister of State is looked upon as a man of responsibility, a man of honesty, a man of trust, a man with a word, and here we have the case in which the Tánaiste, the Minister for Industry and Commerce, gave his word to the Tramore Town Commissioners on the occasion of his visit to Waterford to open a glass factory and on his behalf the Department of Industry and Commerce gave their word to certain interests in Tramore that this property, if it was to be disposed of, would be disposed of by public auction.

If the people of the country are to respect, look up to and have confidence in the Ministers in charge of the various Departments of State, the least they can expect from such people in such responsible places is that they will have some word rather than to see the Press of the country being placed in the position of using the thickest and biggest possible print to publish in their headlines: "Breach of faith by Minister." I think that the Minister for Industry and Commerce, as far as the property in Tramore is concerned, not alone gave false information but was misleading, and it should be the duty of the Select Committee of this House to investigate the motives which were behind the misleading information given to the people of Waterford as far as this property is concerned. That is Number 1.

Number 2, there is and should be great interest taken in the principle that when it is decided that State property-either produced by the State, erected from State funds or vested in the State-should change hands it should be placed on the open market and on the public market. In the past, and even during the time of the inter-Party Government, there were forms of State property being sold which were placed on the open market and on the public market. I would like to know why there was a departure in this case from placing this property on the public market. Was it because of the tremendous influence that was behind the three respected and, I admit, highly respected citizens of Waterford? Was it because of the extraordinary influence they had that arrangements were made to keep this property from public auction? One seems to find the whole position unreal when we see the hydro alone, which cost £67,000 to erect, being sold with other property for the sum of £22,500.

I fail to understand why the Department of Industry and Commerce, despite the many requests and protests that have come from Tramore, have evaded in every possible way both the giving of information and the holding of an inquiry in order to clear up what I describe as a dishonest mess with a very strange and a very strong and suspicious odour. I think that the Minister for Industry and Commerce would be right, in order to clear the air and to satisfy the public uneasiness that does prevail not alone in the town of Tramore but in every part of this country where the taxpayers were asked to contribute their share, however small it may be, towards the reclamation of land in the first instance by the Construction Corps from 1939 onwards until the land was reclaimed, to consider the grave inconvenience that was caused in one case to the garage owner referred to by Deputy Kyne and to amusements caterers and others who were removed from this particular site by the Irish Tourist Board during those years and were given an undertaking that if the property was ever being sold or disposed of they, as the original people who carried on business on this site, would be given first preference and an opportunity of putting a bid on these lands.

Is it not an extraordinary state of affairs that both the garage owner, the amusement caterers and shopkeepers concerned viewed with alarm, horror, amazement and disgust the concealed and suspicious manner in which this property was afterwards handed over to three of the wealthiest men in Waterford with the support of an outstanding wealthy racehorse owner from South Tipperary very well known to the Minister? I think that as the Labour Deputy for Waterford has put forward this, it is a matter which should be investigated, and that this House is failing in its duty, and we are failing in our duty to the taxpayers, if we do not do what we can to see that a complaint or an injustice, or something concealed behind a disgraceful transaction of this kind, will be ventilated and that the committee which this motion suggests will have power to send for papers, persons and records so that this disgraceful transaction may be fully and properly investigated.

The Tramore Town Commissioners are a body of enthusiastic people elected by the people of Tramore to administer the affairs of the town. They are nine trustworthy citizens, the most trustworthy of them being the chairman, Mr. Eric Power, one of the staunchest possible supporters of the present Minister. As chairman of the town commissioners he headed the deputation which interviewed the Minister in connection with this matter. Subsequently, speaking at a meeting of the town commissioners held in the evening of the day on which the Minister received the deputation, Mr. Power stated:—

"The decision to dispose of the property by private treaty had apparently been made in May, although Mr. Lemass at a by-election meeting in Tramore in June stated that the sale would be by public auction."

I am quoting from the report which appeared in the Evening Herald on the date on which the Minister received the deputation.

Surely that must seem almost incredible to decent-minded people. It is not incredible to those of us who know the mean low tactics to which the Government and the Minister for Industry and Commerce resort on the eve of by-elections. We have had the case in which a biscuit factory was promised prior to a by-election in one constituency. In Waterford it was not a biscuit factory, or an airfield, or an extension of a cement factory; it was that the public property of the Tourist Board in Tramore would be sold by public auction. The Minister stated that in June but in May he had full knowledge of the fact that the property would be sold privately to these three individuals, and the chairman of the town commissioners stated publicly at meetings in Tramore and throughout County Waterford that he had been deceived and misled and that he failed to understand how any honest and responsible Minister could deliberately mislead the chairman of a public authority and, even more so, a political colleague and a political supporter.

The giving of misleading information for the purpose of soliciting support from Tramore in the by-election is something we must view with horror and disgust. Such conduct falls far short of what we expect from Parliament and from a Minister for Industry and Commerce. It is well known locally that if this property had been put up for public auction it would have reached a higher sum than £22,500. Correspondence passed between the Minister and the Tramore Town Commissioners on that aspect of the matter. The town clerk communicated with the Department and the Department replied asking the town commissioners to give details of the property for which they were prepared to make a bid. That information was supplied. The town clerk also asked the Minister to hold up the sale of the property until such time as due notice would be given of its sale by public auction.

This whole transaction was hedged round with secrecy. I asked several questions in relation to this matter last February and it is abundantly clear that every possible opportunity was availed of by the Minister to sidestep the main issue. The Minister appeared to believe that if the property was put up for public auction they would not have got a better bid than the £22,500, but it has been proved that a higher bid than £22,500 would have been forthcoming.

When one hears the Government wailing about expenditure one is inclined to ask oneself if the Government is really sincere? The Government spent £85,000 of the taxpayers' money and subsequently deprived local interests of property to which they were entitled for the conduct of their business in this seaside resort.

On 4th February, 1953, the Minister for Industry and Commerce, in reply to a question tabled by me, said:-

"I am advised by An Bord Fáilte that the costs of acquisition and development of the properties at Tramore cannot be segregated in the form sought in one of the questions. The cost of erecting and equipping the hydro was £35,535. The cost of the pitch-and-putt course was £1,000 and the cost of the boys' club (lands and buildings) was £2,700. I am informed by An Bord Fáilte that separate figures cannot be provided for the cost of developing the site prior to the erection of the hydro or for the cost of the casion. The total net expenditure on acquisition and development of all the properties, after making allowance for revenues received, was £84,550."

I understand that if this property had been sold by public auction it could have reached a figure of £50,000 or £55,000. Considering that that sum could have been procured from interested parties there must be some very strange motives behind the secrecy which surrounded the sale privately of this property. These influential gentlemen who purchased the property did so for the purpose of swelling their own purses. With respect to the three gentlemen who did purchase it, they purchased it as businessmen. It cannot be disputed that they are very keen businessmen, and it was not in the interests of Tramore and its development that they purchased this property; it was for the purpose, as I say, of swelling their own purses and they have achieved that purpose with the able help and the fullest possible co-operation and assistance of the Minister for Industry and Commerce.

It is only now that the local business people, the hotel proprietors, the amusements caterers and the local people generally realise that this property was purchased for the benefit of those who bought it and not in the interests of the development of the tourist industry. I hope the Minister will not stand over such a transaction as that. Even if he has got himself into a very serious mess as a result of this disgraceful transaction, it is not too late to tell the chairman, the town commissioners and the people that he is sorry he misled them and that the transaction has served its purpose in the return of Deputy Kenneally to this House in the by-election because of the promise he made; that he misled the people and that as far as the property was concerned he was prepared in Waterford to sacrifice £85,000 worth of property for £22,000 in order to satisfy the influence which was brought upon him by those three individuals who purchased this property.

Dáil Éireann should certainly lose no time in inquiring into this. I very strongly commend and compliment Deputy Kyne for the manner in which he has presented this case to the House. I want to express my keen disappointment that the Government did not provide time for a motion such as this much earlier so that the House would be given an opportunity of clearing up this disgraceful transaction and having it fully inquired into so that the people of Tramore would be given an opportunity of finding out the real motives which cannot be disclosed except through an inquiry by this House which this motion asks for and which I am sure the House with the fullest possible support will agree to.

The more I have considered this matter, the better am I satisfied that in accepting the recommendations of An Bord Fáilte for the disposal of this property I secured for it a higher price than could have been secured by any other method, and the kind of arrangement which is best likely to serve the interests of Tramore as a holiday resort. Deputy Kyne contends that the property should have been sold by public auction. Underlining this contention is the suggestion that the persons to whom the property was sold were just ordinary private citizens who had no better claim for special consideration in relation to the property than anybody else. That, of course, is not a fact. The properties were sold to directors of a company which was set up by the Tourist Board itself in 1946 for the purpose of acquiring, developing and managing these properties, and the directors of this company were the people who knew all about them, who had been responsible for their management from the beginning, men who had, as public citizens interested in Tramore, acted without fee or reward in the management of these properties and who were content to allow the position to continue as originally contemplated by the Tourist Board when that local company was established.

When, however, it was decided by the Government which came into office in 1948 to dispose of the properties held by the Tourist Board, naturally the interests of Tramore were considered by the Tourist Board in relation to the disposal of properties there. The Tourist Board were always of opinion that the right way to secure the interests of Tramore as a holiday resort was to dispose of these properties to the directors of the local company. That was recommended to my predecessor; that was recommended to me. The Tourist Board were strongly of opinion that the individuals who had supervised the development and had been responsible for the management of the properties were the best fitted to direct them in future so as to secure the benefits for Tramore that were always contemplated.

Furthermore—and this is an important point in relation to the matter, important to an understanding of why the Tourist Board were so strongly of that opinion—when the Government in 1948 decided that this policy of developing holiday resorts through the activities of the Tourist Board was to stop, the plan for the development of Tramore had only begun; it had not been even half completed. The local company had been pressing for the acquisition of further properties there, acquisition which they thought was necessary both for the proper development of and to protect the value of the properties already acquired. In the hope that the then Government might change its mind and reverse this decision to stop the policy of holiday resort development, the directors themselves out of their own resources found the money to buy this additional property. As the interests of Tramore required that all the properties should be developed in accordance with some consistent plan, it was obviously desirable that the property which was in the particular ownership of the Tourist Board, although managed by the local company, should be disposed of to those who already owned on their own behalf and purchased with their own money a further portion of property.

No proposal for purchasing this property was received from the town commissioners. The town commissioners came to my predecessor to intimate that they had an interest in the acquiring of the property. There was some doubt as to their legal powers and considerable doubt as to their authority to raise the money for the purchase of the property. They were, however, invited to put up their proposals in relation to the property but have never done so. It is true that subsequently another private company composed of members of the town commissioners as private individuals evinced an interest in the acquisition of the property, but it was as private individuals, even though the individuals happened to be members of the town commission for the time being, that they came together. The town commissioners, as such, while they might have, under statute, powers to acquire the property or at any rate part of the property, could not raise the money for that purpose and if the money was to be raised it would have to be provided for the town commissioners by the Waterford County Council. So far as I am aware, the question was never even discussed by the Waterford County Council.

Then there is another fact. It has been said that this property has been mismanaged since it went into the hands of the new owners and that they have exploited the property for the betterment of their own interests. They have not got the property yet. The sale has not been completed. The purchase price has been paid, but the lease has not been finally executed. For the time being, the local people concerned are managing the property as caretakers for the Tourist Board. To suggest that the property was transferred and was being used to the detriment of the town or for private gain is nonsense. The property is still the property of the Tourist Board. The purchase price has been paid but it is only as caretakers for the Tourist Board that the local company managed the property during the past year.

It is not true that other properties of the Tourist Board were not disposed of by private treaty or only after they had been offered by public auction. My predecessor on three occasions sanctioned the sale by private treaty of Tourist Board property without that property having been offered for sale by public auction. He was right. I am not criticising his decision. On each occasion he sanctioned the proposals of the Tourist Board to dispose of the property in the way best designed to serve the interests of tourist development. It would have been a serious mistake from the point of view of the Tourist Board if these properties had passed into the hands of any other persons except those who acquired them. So far as precedents are required, there are three, one in relation to property at Portmarnock, one in relation to property at Killarney, and one in relation to property at Bundoran.

I move the adjournment of the debate.

Debate adjourned.
The Dáil adjourned at 2 p.m. until 3 p.m. on Tuesday, 16th February.
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