Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

This was a mistake that was made on the State's side. The State has acknowledged that but it also acknowledges that this is a long-term lease and we are hopeful that, by negotiation, the liability to the State will be minimised. We have also acknowledged that it is a 25-year lease and there is no duty upon the landlord to come back to us at the moment. It is not a matter of negotiation. It is a matter of looking at this in the round of 25 years to see how we can come to an accommodation with our landlord. It is not in our interests or the landlord's interests not do that, given that the Government may very well have additional office accommodation requirements over the next while that will need to be facilitated. I am hopeful that by negotiation and over the 25-year period we are talking about, the maximum liability to the State as it currently stands, which is €8.6 million plus VAT of €1.9 million, can be reduced to a satisfactory amount. It is not satisfactory as it is and I am not here to make any excuses. The Chairman of the OPW has not done so either. We admit that there was a serious mistake here and we have put protocols in place to make sure it does not happen again. We cannot undo the mistake and I cannot say that the landlord has done anything wrong. He absolutely has not. This is a liability that accrues to the State and we are trying to make sure we minimise it through negotiation and dialogue.

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