Vol. 412 No. 5
10 Mr. Quinn asked the Minister for Finance if an official in the Department of the Taoiseach is still in the chair of the committee established to dispose of the former Government offices on Upper Merrion Street; if he will outline the nature of the work which is being undertaken currently by the committee; when the decision to include number 24 Upper Merrion Street in the package for disposal was taken; and if he will make a statement on the matter.
27 Mr. Hogan asked the Minister for Finance if he will outline the valuation placed by the selling agents on the former Land Commission offices, Upper Merrion Street, Dublin 2; if he will give details of the offers placed on the building at present; if he considers the final selling price will realise the necessary finance to pay fully for the work on his new offices at a cost of £17 million as promised by him on many occasions; and if he will make a statement on the matter.
111 Mr. Quinn asked the Minister for Finance when the former Government offices in Upper Merrion Street, Dublin 2, which are now vacant, will be sold; and if he will make a statement on the matter.
I propose to take Questions Nos. 10, 27 and 111 together.
The disposal of the properties in question was entrusted to the Commissioners of Public Works, who were instructed to engage selling agents in the private sector for this purpose. No committee was set up to supervise the disposal. The decision to include House No. 24 in the sale was taken in July 1991.
Agreements have been reached for the sale of the properties for a sum in the region of the asking price of £4.5 million which was fixed following consultation with the selling agents. The contract preliminaries in connection with the sale of the properties are currently being settled by the agents. I am satisfied on the advice of the selling agents that the sale price is acceptable, given the current state of the market for Georgian buildings and the strict preservation conditions incorporated in the conditions of sale.
I have three supplementary questions to put to the Minister of State. First, how long were the committee in existence which deliberated on the future of those buildings — I understand an official from the Department of the Taoiseach was the chairperson of that committee? Second, what is the gap between the recommended market price and the figure that was given to this House in respect of the contribution which the disposal of those properties would make towards the refurbishment of Government Buildings next door? Third, to what extent are the Commissioners of Public Works responsible for the substantial physical deterioration of the building?
Perhaps I will deal with the last question first. There are still a very small number of staff working at present in the building. To date, it is costing somewhere in the region of £115,000 to keep the building in a reasonably good condition. Nevertheless it is felt that unless the buildings are disposed of fairly quickly, it could cost in excess of £2 million to carry out the minimum works. With regard to the first question, the committee, to which the Deputy refers, were not to investigate the possibility of sale but to look into the possibility of how these offices or buildings might be used by Government for Government purposes.
What about the gap between the price and what was hoped for?
As the Deputy is aware these buildings went to auction. The offers made were not considered satisfactory; No. 24 was not included at that time but was subsequently added to the list. The commissioners feel that the price offered at present — in the region of £4.5 million — is quite satisfactory in view of present market prices.
The Minister of State has replied that £4.5 million was the actual valuation put on the property. This certainly runs counter to the type of money that was expected by the Taoiseach in financing the Government buildings project. What offer is on the building at the moment and does the Taoiseach think that the original valuation will be achieved?
I have already informed the House that the offer has been accepted, and that the transaction which is at present being completed by the respective agents is in the region of £4.5 million. The Taoiseach did not indicate at any time that a specific price would be paid for those buildings. The Taoiseach indicated that it was hoped to obtain a very good price for the building which would help in comparison to the overall cost of reconstructing the new Government buildings. It was never said that we would be offered any specific price.
Would the Minister not agree that as a result of a triangular process of warfare between the Taoiseach's Department, the Department of Finance and the Office of Public Works, the State, in the form of the taxpayer, has missed the boat in relation to realising the maximum value of those properties which would have been close to £7 million or £8 million? Are lessons being learned from this fiasco to avoid repetition in the future?
Deputy Quinn will know that the cost of a building to a prospective buyer is obviously based on what would be required in relation to planning conditions and so on. There is a preservation order on the Houses, both inside and outside and obviously that would have an effect on the commercial value. In the circumstances, the commissioners are satisfied that the offer that has been accepted is satisfactory.
If you had got your act together two years ago, you would have got much more.
