Dáil Éireann díospóireacht -
Tuesday, 7 Oct 2003

Vol. 571 No. 4

Written Answers. - INPC Sale.

Brendan Howlin

Ceist:

169 Mr. Howlin asked the Minister for Communications, Marine and Natural Resources when he expects agreement to be reached with the purchasers of a refinery (details supplied) and the Bantry storage terminal on the final amount to be remitted to the Exchequer; the amount remitted to date; the number and nature of the environmental claims lodged with INPC by the purchaser; the nature of the contractual dispute between INPC and a third party which is delaying finalisation of this matter; and if he will make a statement on the matter. [22050/03]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern)

As I advised the House in my reply of 11 June 2003 to Question No. 119, the agreement of the purchasers is not required to finalise payments to the Exchequer in this instance.

Having regard to the terms of the sale, which involved the retention by the INPC of the company's existing debt and a number of other responsibilities having financial implications, it is estimated that the final net return to the Exchequer will be between €30 million and €40 million. Of this amount, which represents a very positive financial outcome for the State, INPC has already paid €20 million to the Exchequer. The company is not yet in a position to definitively determine and pay over the final balance because a number of outstanding matters have still to be resolved. These matters, comprising chiefly environmental claims and a contractual dispute, have potential financial implications. Until these matters have been finalised the INPC, having regard to the Companies Acts, will not be in a position to divest itself of its remaining financial assets.

The environmental claims were lodged by IPCL, the purchasers of the INPC' s businesses and commercial assets in July 2001, in respect of certain remedial works at the site of the refinery at Whitegate. The details of these claims are a day-to-day matter for the INPC and it is not appropriate for me to elaborate on them or their merits at this stage. The contractual dispute referred to is a commercial dispute with a former customer and also a day-to-day matter. Because of the close involvement of third parties in the unresolved matters, neither INPC nor my Department can say when the remaining proceeds will be made available to the Exchequer. However, I am hopeful that a further, though not necessarily final, payment may be made before the end of the year.