Vol. 561 No. 5
106 Ms Burton asked the Minister for Defence if the contract for the sale of Clancy Barracks has been concluded and signed; the final sale price; if the purchase price has been paid over; if his Department has satisfied itself that it knows the beneficial owners of the purchasing company; and if he will make a statement on the matter. [4662/03]
My Department has accepted an offer from Florence Properties Limited for the sale of Clancy Barracks, Dublin. The Department is in the process of effecting first registration on the title to this property in the Land Registry and the contract of sale is expected to be finalised shortly. Pending signing of the contract of sale it would not be appropriate to comment on the details of the sale.
Florence Properties issued a press release in November indicating that it had agreed to purchase the property in question. The press release went on to say that "Florence Properties (Ireland) is a wholly owned subsidiary of Florence Properties (Jersey) which is owned by a trust company, the beneficiaries of which are the family of Irish-born property developer David Kennedy."
Is the Minister satisfied that the sale is completed and is proceeding to the Land Registry for registration?
Yes.
Do I understand correctly that the Minister has stated who the potential owners are?
That is correct.
What conditions are attached to the sale with regard to the possibility of the site being used for affordable housing or whatever? Were conditions, as such, attached to the sale?
As the Deputy is aware, I was very anxious that this site would have been purchased by the city council for that purpose. However, that body decided, perhaps wisely from its point of view, that that was not a consideration for it. From my knowledge of the potential of the site, I believe there is adequate potential for affordable housing. However, in selling on the open market, there is a limit to the extent one can dictate what a new owner will do with the site, especially when the offer is considerably higher than that of any other tender.
How will the proceeds of the sale be used?
The money has been spent, primarily on the acquisition of equipment and improvement of accommodation for the Defence Forces.
Do the conditions of sale include the imposition of restrictions with regard to listed buildings on the site? Has access been guaranteed to the railway platform at the rear, in line with future plans by CIE to develop on that side of the site? Is the Minister saying that Dublin City Council made no attempt to buy the site from the Department, or was it that the Department's figure was too high?
To be honest, I am not really sure. In the first instance, it was placed on offer to the city council exclusively. After negotiations had got under way, which looked very positive, they ended rather abruptly. I then put the site up for sale and the city council made an offer which was considerably below the valuation placed on the property by the Valuation Office, on which I rely in selling property on behalf of taxpayers. Negotiations then commenced with a number of other companies, culminating in the Florence purchase at a price considerably above what the city council was prepared to offer. For State property, as the Deputy will appreciate, we have an obligation to secure value for money. If I did not succeed in getting a return in that way, I would have to look to the taxpayers for it. The proceeds of the sale have been greatly instrumental in facilitating developments in the Defence Forces.
With regard to the proceeds of this and other military properties that are sold, does the money go through the Department of Finance or is it held in the Minister's Department for expenditure on the equipment to which he referred earlier? What arrangements are in place in that regard with the Department of Finance so that the Minister can actually spend the money before it comes in?
It was a unique arrangement which, as far as I am aware, was not made before. I am very grateful to the Department of Finance for the flexibility afforded to the Department of Defence for the first time in this instance. It is fortunate that this procedure applied because I usually spend the money before I receive it.
