Results 861-880 of 1,776 for speaker:Derek Nolan

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: So Limerick City Council is bearing the interest burden. If it is waiting for payment by the board, it as opposed to Bord na gCon is taking the hit in terms of interest.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: The board suddenly found out that it had been caught and that the site's cost was much higher than €3.4 million.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: What was the provision?

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: How much was that?

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: The provision was between €200,000 and €300,000, but it cost €1.014 million.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: I accept Mr. Neilan's explanation of the reasons, but when one buys a site, one includes matters such as this in the contract. One does not take a chance or agree an understanding that something will happen.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: When one spends €3.4 million on a site, one wants to know that that is the cost.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: Was the board warned by its legal people? Was it advised that this could all fall through and it would have no legal recourse?

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: But the board had not budgeted for it.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: The board took a chance and lost.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: I understand what Mr. Neilan is saying, but what he is really saying is that the board got hit with an extra cost and was lucky that building costs decreased as well, preventing it from being caught. That is not a saving. It means that the board lost out on the benefit that it should have received from cheaper prices in the construction industry, as it had not built this provision into its...

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: We disagree on the interpretation of what happened and the benefit. When the board bought the site, it should have set out legally or via an agreement who was responsible for filling it in. If that was the board, it should have included the cost in its budget. If that was someone else, it was his or her responsibility. Instead, people decided to do their best and see what happened and...

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: The board included it in its project, as it only made provision for €200,000. Regardless of whether it was a legal factor, it was a financial factor in the deal.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: We received correspondence from a former board member. I appreciate that the person did not put his or her name to it.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: According to it, when the board first considered purchasing the site in 2003, almost 14 acres were on offer for €2.2 million as opposed to the €3.4 million that was paid. However, the board's auctioneers and engineers had estimated a minimum of a further €1.5 million to be spent on fill. On this basis, the board decided not to proceed, as it was believed that the cost...

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: Some of the €22.2 million is being switched to capital repayment while more is remaining on interest only-----

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: I understand this-----

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: There is a serious question then about the financial management of Bord na gCon if it continued spending and drawing up debt to a point where it cannot be paid back and only the interest is being paid back. Debt has been accrued to a point where only the interest is being paid back and this surely implies some financial mismanagement.

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: What people say to us in correspondence is with regard to the manner in which the project was managed in their view and with regard to the figures. The costs exploded throughout the development of the project and serious errors were made with regard to who was responsible for site filling and compacting and car parks. Basic legal, construction and project management mistakes were made,...

Public Accounts Committee: Bord na gCon - Annual Accounts 2011 (7 Nov 2013)

Derek Nolan: I wish to ask a question before Mr. Neilan continues. The figure of €19.8 million was the limit for the project.