Land Issues

Dáil Éireann Debate, Tuesday - 25 March 2014

Tuesday, 25 March 2014

Questions (697)

Catherine Murphy

Question:

697. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if he will indicate, in relation to lands and property assets held by development companies for liquidation, and where developments are not completed to the planning permission, do the assets transfer to protected creditors, his Department, the State Solicitor or another agency; if there are any proceeds made available to complete public services in incomplete housing developments, debts to the Revenue Commissioners, lenders or other creditors in such cases; and if he will make a statement on the matter. [13604/14]

Written answers

Minister of State at the Department of the Environment, Community and Local Government

Issues relating to company law are primarily a matter for the Minister for Jobs, Enterprise and Innovation. However, my Department understands that where a lender decides to appoint a liquidator to dispose of the assets of a debtor, including in the case of unfinished housing developments, ownership and control of those assets passes to any new owner purchasing the assets from the liquidator. Any proceeds of such asset disposals will normally be used to repay outstanding debts, including creditors, who may include secured creditors firstly (e.g. the lender), the Revenue Commissioners and unsecured creditors, who can include local authorities in relation to matters such as unpaid development contributions.

The new owners of any assets disposed of by liquidators would then become responsible for the relevant sites and relevant matters arising in relation to compliance with legislative requirements under planning and related codes.