The State paid more than €19 million for five properties which have remained vacant since they were acquired to house asylum-seekers up to 3½ years ago.
The properties could not be used for asylum-seekers because of legal challenges from local residents, the Oireachtas Public Accounts Committee was told yesterday.
In one case the State agreed to rent a "green field" in Co Kilkenny for €184,000 a year to be used to erect prefabricated houses.
When the matter was delayed in the courts a builder was paid more than €2 million to settle his €6.56 million contract to build the prefabricated houses. The houses were delivered but have remained mostly in storage ever since.
The committee was told the five properties at today's valuation would be worth about half the State's investment. Ongoing security and maintenance costs amount to as much as €500,000 per year in some cases.
The properties were:
The Devereux Hotel in Rosslare, Co Wexford, which was acquired by the State before auction in March 2000 for €2.74 million, and unused until it was sold for €1.86 million in July 2003. Security and other costs amounted to €452,590.
A site at Leggetsrath, Co Kilkenny, which is leased at a monthly rent of €15,332. The use of a ministerial order exempting the site from planning permission has led to the legal challenge and so delays. Additional costs so far are quantity surveying €176,091; storage €53,361 and legal costs €4,041. Total costs to last August were €2,536,240.
Broc House, in Donnybrook, Dublin. The State paid €9.205,601 million for Broc House on June 30th, 2000. The three-storey block of flats has remained empty since following a legal challenge based on allegations that the plans represent a "change of use". Security and other costs amount to €432,189.
Myshall, Co Carlow, where the State bought a glebe building in July 2000 for €1.3 million. Following objections from local residents it was agreed to transfer the building to the South Eastern Health Board. This process is ongoing. Costs were in excess of €195,000 up to December 31st, 2002.
Lynch's Hotel, Macroom, Co Cork. The State paid €3.5 million for this 33-bedroom hotel in October 2002, and it has remained vacant ever since due to a legal challenge. Security and other costs amounted to €448,439 in August 2003.
Yesterday a spokesman for the Department of Finance, Mr Jim O'Farrell, told the committee: "We couldn't say that the Office of Public Works or the Department of Justice could have performed better to secure value for money for the State".
The secretary general of the Department of Justice, Mr Tim Dalton, told the committee that many properties and schemes similar to those detailed had been successful in accommodating refugees or asylum-seekers.
