Dáil Éireann Debate, Thursday - 21 October 2004
86 Mr. Quinn asked the Minister for Communications, Marine and Natural Resources the amount paid to date to the Exchequer in respect of the sale of Whitegate Oil Refinery and the Bantry storage terminal; the amount of balance which remains outstanding; when he expects that this will be paid; if he has satisfied himself at the rate of payments; and if he will make a statement on the matter. [25658/04]
View answerIt is estimated that the final net return to the Exchequer arising from the sale of the business and commercial assets of the Irish National Petroleum Corporation, INPC, will be in excess of €30 million. The INPC has already paid €20 million to the Exchequer.
In November 2003, the board of the INPC, cognisant of its obligations under the Companies Acts to retain sufficient assets to meet potential liabilities, determined that it would not be appropriate to make a further payment to the Exchequer at that stage as a number of outstanding matters have still to be resolved.
These matters, mainly comprising environmental claims lodged against the INPC and a contractual dispute with a former customer, have potential financial implications and consequently the INPC is not currently in a position to divest itself of its remaining financial assets. Given the involvement of third parties in the unresolved matters, neither the INPC nor my Department is in a position to indicate when the remaining proceeds may become available.
It has always been accepted that the total cash return to the Exchequer arising from the INPC transaction would be considerably less than the headline sale price of $100 million as the INPC had, for example, to use some of the proceeds to discharge the company's debt. I am satisfied, however, that the transaction represented a very positive outcome for the State, particularly having regard to the fact that the Government also placed an obligation on the private owners to operate the facilities for a period of at least 15 years as a condition of the sale.
