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Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: That is what I told the witness five minutes ago.

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: We will not go there. We are just dealing with the chapter-----

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: We will deal with the chapter from the Comptroller and Auditor General. We know the background and that the tender received was the best. That is fine. The Comptroller and Auditor General starts with the High Court judgment. There are a couple of issues, because this chapter hinges on the High Court judgment, and the judge had the final word. It is a very short chapter. There is one...

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: I detect what is essentially a code word. The witness is saying she acted in good faith having regard to the advices. She appears to be pointing the finger at her legal advisers. To whom is she referring when she says that in the paragraph?

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: So the witness was not happy with-----

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: The Chief State Solicitor's office was the OPW's legal adviser. Who was the Department's legal adviser during this or who was the Affordable Homes Partnership's legal adviser?

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: Did the Department have any advisers in this?

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: Unusually, the judge refers to the Chief State Solicitor's office several times in his judgment. In paragraph 15 he says that the Chief State Solicitor's office objected to a final transfer. What is curious about the judgment, and this chapter emanates from that, is that the Affordable Homes Partnership - this is from paragraph 18 of the judgment, which might not be before the Committee of...

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: The Affordable Homes Partnership served notice on the Department to join it in the process, and the Department objected because there was a stamp duty issue. The judge says that the commissioners attended a meeting with the Department on 28 September, and the Department changed its position, for the reason that the Affordable Homes Partnership had agreed to provide an indemnity relating to...

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: Because of the passage of time.

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: What you are saying, essentially, is this. Thirty-four million euro has been paid to date - €32.6 million by the judge, and there was interest that he got in addition, plus the developer's portion of legal fees that have been submitted so far, and a portion of fees from the Chief State Solicitor's office, which brings the sum up to €34 million paid out to date. However,...

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: Am I understanding it right?

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: I got worried when you started your opening statement by saying that the situation was very complex, which almost implied that it was a bit too complex for ordinary people. I like to bring it back to ordinary people's level, take out the complex element and get back to basics. From what you are saying, Mr. Durkan was saying that because he did not get rent - I am paraphrasing what you said...

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: Is that not what you said?

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: There was an allowance.

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: Are you trying to say it cost nothing?

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: But you are saying that it almost cancelled out the €31 million - that was a discount.

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: The taxpayer ended up paying €31 million and the people who bought the houses paid €45 million.

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: Okay. I will move on. Chairman, I will not be long more and, to use Ms Tallon's words, it is a complex issue. When do the witnesses expect to have finality in terms of the total cost of the scheme? Has there been any discussion? You are now saying that the money is payable to NAMA so this is money due to NAMA. Is that correct? It is obvious and we all understand that the company is in...

Public Accounts Committee: 2012 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Land Swap Arrangement in the Provision of Affordable Houses
Vote 13 - Office of Public Works
(30 Jan 2014)

Seán Fleming: -----that the payments are being made to NAMA each year. It is really NAMA's responsibility to send the Department the bill because it is due the extra legal fees. If there is an extra €1 million in legal fees, it will be payable to NAMA for NAMA to discharge to whomever necessary. Am I right in saying that?

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