Dáil Éireann debate -
Thursday, 14 Oct 1993

Vol. 434 No. 6

Written Answers. - Termination of Lease.

Róisín Shortall

Question:

69 Ms Shortall asked the Minister for Finance if, in relation to the recent decision to terminate the lease on a site on Shanowen Road, Santry, between the Office of Public Works and a company (details supplied), he will give the name of the person responsible for taking this decision; the basis for this decision, in view of the fact that Murphys claim that it has jeopardised 70 jobs, 45 of which have already been lost in the past couple of weeks; if a new agreement on this site has been made with a sports club (details supplied); if so, the form this agreement takes and the parties involved in making it; the terms of this agreement; the assistance, if any, he will give those who have lost or are about to lose their jobs; if he will agree to an urgent meeting with representatives of the aforementioned company; and if he will make a statement on the matter.

Minister of State at the Department of Finance (Mr. Dempsey)

By virtue of an agreement between the Commissioners of Public Works in Ireland and Joseph Murphy Structural Engineers Ltd., the company was, in 1988, granted a short term letting of a site at Shanowen Road for storage purposes. The company was always aware that the agreement could be terminated by either side on giving one week's notice.

Approval in principle had been given as far back as June 1991 to the grant of a lease, to St. Kevin's Boys Football Club, of a property of which this site forms part. Negotiations on the terms and conditions of such lease were not finalised until August 1993, and the agreement between the Commissioners and the company was then terminated. The terms for this lease have been agreed between the Commissioners and the club, with the approval of the Minister for Finance. While it is not the practice to divulge details of transactions with other parties, I can say that the lease will be for a period of 99 years and that the agreed terms provide for the payment of a substantial sum of money by the club.

The Commissioners of Public Works have made every effort to alleviate any difficulties which the termination of the letting agreement may cause to Joseph Murphy Structural Engineers Ltd. — the company was given four week's notice of termination of the agreement, and this period was subsequently extended by a further two weeks to the end of September 1993. The company was also offered an alternative site at Shanowen Road but rejected this offer. Officials of the Commissioners and the Department of Finance held discussions with St. Kevin's Boys F.C. which culminated in an agreement to allow Joseph Murphy Structural Engineers Ltd. to continue to occupy the site for a further period of at least nine months. The club was also asked to consider all possible options for the property, including the possibility of accomodating the company's long term storage needs, and to negotiate with the company on the matter. The company has also rejected this proposal and I understand that it plans to vacate the plot within a few weeks. I regret that the company's decision may have led to some lay-offs. However, the company has been offered a secure tenure of the site for a period of at least nine months and I am confident that, even at this stage, with goodwill on all sides, a satisfactory conclusion can be reached which will enable the football club to provide facilities for its members and at the same time meet the company's storage requirements thus negating the need for any lay-offs. I am disappointed to note that the company has, to date, rejected this possibility, and I hope that it will reconsider its position. Neither the Commissioners nor the Minister have received any request for a meeting with representatives of the company, but any such request will be positively considered if it can provide a basis for a solution.