Jim O'Keeffe (Cork South West, Fine Gael)
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Question 88: To ask the Minister for Finance the reason for the sale of the Reception and Integration Agency property in Macroom, County Cork at a loss of over €2 million to the taxpayer in the context of a property market where prices have more than doubled over the past five years. [3418/06]

Tom Parlon (Laois-Offaly, Progressive Democrats)
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Lynch's Lodge Hotel was purchased for the accommodation of asylum seekers in October 2000 at a cost of €3,549,711. It was never occupied because of judicial review proceedings which were finally settled in June 2005.

At this stage it was not required for the purpose for which it was purchased. All Government accommodation requirements were looked at including decentralisation and the Health Service Executive. The property was deemed surplus to the requirements.

An agent was engaged and the property was placed on the open market for sale by public tender. There was substantial interest in the property with 19 viewings and 13 requests for tender documents. The highest bid received was €2,300,010.00. This was accepted after due consideration and taking into account the recommendation of the agent.

The sale price of €2.3 million reflected a number of factors: the general deterioration in the market value for this type of property and the lack of tax incentives; and the effects of the loss of goodwill and trade during the period when the property was not in use as a hotel.