Written answers

Tuesday, 6 February 2007

Department of Communications, Energy and Natural Resources

Petroleum Plants

10:00 am

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 356: To ask the Minister for Communications, Marine and Natural Resources the amount paid to date to the Exchequer in respect of the sale of the Whitegate refinery and the Bantry storage terminal; the amount of the balance which remains outstanding; when he expects that this will be paid; if he is satisfied at the rate of payments; the other outstanding issues that remain to be resolved before the remaining balance will be paid; and if he will make a statement on the matter. [3815/07]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The Irish National Petroleum Corporation Limited (INPC) business and commercial assets were sold on 16 th July 2001. The INPC was paid in full for these assets on 16 th July 2001. An undertaking, by the purchaser, and its successors, to operate the facilities on a fully commercial basis for at least 15 years, was a key element of this transaction.

While the headline payment figure was $100 million (€117 million) for the 2001 transaction, it was always accepted that the net cash return arising from the transaction would be considerably less as the INPC had, for example, to use some of the proceeds to discharge the company's significant debt (circa €88 million).

After taking account of all the company's matured liabilities it was estimated that the INPC would have funds in the region of €30 million. The INPC has paid €20 million to the Exchequer (2002) but the company is not in a position to pay over remaining balance, as, under Company Law, it must retain sufficient assets to meet potential liabilities.

The INPC retains rights and obligations under the terms of the Sale and Purchase Agreement (SPA) relating to the 2001 transaction. I would refer the Deputy to the Annual Reports and Accounts of the INPC, laid before the Oireachtas, for the years 2001 to 2005.

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