Dáil Éireann debate -
Wednesday, 11 Dec 1991

Vol. 414 No. 5

Written Answers. - Health Board Farm Sale.

Máirín Quill

Question:

97 Miss Quill asked the Minister for Health if she will outline her views on the sale of the 164-acre farm at Curraghbeg owned by the North-Eastern Health Board and known as the Ardee psychiatric farm; and if she will further outline (1) whether she has satisfied herself that, at all times, correct procedures were followed by the health board in this matter, (2) the date the contracts of sale were exchanged, (3) the date the contracts were completed, (4) the amount of deposit paid and date the deposit was brought to account by the health board, (5) the amount paid at the completion of the sale and the date this money was brought to account by the health board, (6) the purpose for which these funds were used by the health board, (7) the date she gave consent for the sale of the land and the date the proposed sale was notified to the auctioneers, (8) a list of the auctioneers who were advised of the availability of the land, (9) if the health board obtained a formal valuation from any reputable source and, if so, from whom and the valuation placed on the property, (10) the date possession was given to the purchaser and, if this occurred before completion of the sale, the value placed on the property, (11) the date possession was given to the purchaser and, if this occurred before completion of the sale, the consideration given and (12) the reversion terms in the event of the sale not being completed and if these terms have been honoured.

Minister for Health (Mrs. O'Rourke)

I would refer the Deputy to my reply to an oral question on this subject, on 28 November 1991, in which the matter is fully dealt with.

Regarding questions (2) to (12) the information requested by the Deputy is as follows:

2-3. Contracts of sale were exchanged on 19 April 1989 and completed on 20 April 1989.

4-5. A deposit of £22,500 was lodged to the health board account on 4 May 1989, the balance of £202,500, less legal fees and expenses, was lodged to the health board's account on 4 May 1989.

6. These funds, together with other capital moneys, were used to fund the development of nine specific projects in the health board area.

7-8. My predecessor gave his agreement in October 1988 to the proposed sale, subject to the reversion condition. Because of the circumstances of the sale which I have outlined in my reply on 28 November auctioneers were not notified of the proposed sale.

9. The health board obtained valuations from both the valuation office and from local auctioneers and valuers. The valuation office valued the land at £550,000 which "might be regarded as an optimistic figure or `asking price' leaving some leeway for negotiation", on the basis that half of the land was at development value and the remainder at strong agricultural price. The local auctioneers and valuers valued the total property at £285,000 "on an existing use basis for agricultural purposes".

10-11. On 1 May 1989, with the closing of the sale, title to the land passed to the purchaser. However, a section of the purchaser's organisation had occupied the land some weeks previously in the mistaken belief that they already had title to it. The health board immediately pointed this out to the purchaser who gave a written commitment to refund any rents received by them from any letting of the land, to the health board in the event of the sale falling through.

12. The reversion terms can only be activated after 19 April 1992 in the event of the purchaser failing to comply with the condition in the contract of sale.