Matt Carthy (Cavan-Monaghan, Sinn Fein) | Oireachtas source

I have a number of queries with regard to the logic that the Department has asserted as to the reason for the extension of the completion of the liquidation. The Department has very usefully outlined the potential losses in asset value if the assets were to be disposed of by the end of this year, next year, 2023 and 2024 and the additional holding costs that would incur. On the holding costs above original projections, these are set out for 2021, 2022, 2023 and 2024 as €2 million, €7 million, €18 million and €26.5 million, respectively. I would like clarity on the discrepancy in that regard. According to the Department, the holding cost for 2022 would be €5 million more than the cost for 2021. The difference between 2022 and 2023 is €11 million and between 2023 and 2024, it is €8.5 million. There does not appear to be any logical fix in how much each year of delay would cost.

Unless somebody can tell me otherwise, I presume that when we are talking about asset realisation, we are, for the most part, talking about properties. It appears to be an almost a gamble strategy to suggest that the difference in assets value at the end of this year, taking into account how high property prices are currently, will be less than what it will be at the end of 2024. If anything, it would be hoped that the market might have cooled in the meantime, but the Department is expecting that the value of these properties will increase to the value of €189 million. That is a fairly big statement. It is the basis on which the Department has agreed to spend an additional €26.5 million in holding costs. I would like further clarification from the Department as to how, and on what basis, it is assuming these asset values will increase to that level.

It was stated that the many of the remaining assets are in the hospitality, office and retail sectors and that it will not come as a surprise that the special liquidators have advised that the assets value were significantly negatively impacted by Covid-19. That may be the case, but some would argue that that has been almost completely reversed. The property pages show the price of property, depending on where it is located, is at an all-time high. It would be useful if the Department could set out for us the basis on which it expects such a large increase in asset value over the specified timeframe that merits the expenditure of almost €30 million extra in holding costs.