John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

The brief answer is if the asset is being transferred and there is an outstanding debt upon it, that debt will also be transferred. For example, if Cork County Council has invested in a public project in the transfer area or the area that is under consideration by the Bill, there cannot be a question that it would still have the liability of paying for the debt. In one sense, it is a paper transaction in that the valuation placed on it is not necessarily the most important thing. It is that the liability does not remain on the county council. I tabled an amendment on Committee Stage in the Dáil that sought to keep some of the liabilities on the county council - that it would have to pay the loans even though the assets were being transferred to the city council. The brief answer is that any place where the county council has invested in a public project that is being transferred in the transfer area to the city, the outstanding debt on that transfer - the loan - will also transfer to the city council. It is a matter for agreement between the local authorities. By and large, there seems to be more agreement between the local authorities in Cork than might have existed previously. I am sure Senator Lombard will point out an example now of where there is no agreement. The implementation group, which is mandated in this legislation to come up with an implementation plan that both local authorities must stick with, will be the final arbiter in terms of ensuring that plan is implemented. We are putting the group in this legislation so that no situation can arise where either local authority feels short changed by situations that might arise in the transfer of assets between the county and the city.