Brian Hayes (Dublin South West, Fine Gael)
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Question 269: To ask the Minister for Education and Science when, in respect of the 64 properties which have been offered to the State from the religious orders under the terms of the indemnity agreement negotiated in 2002, the State will be in possession of these properties; if the 64 properties yield the €66 million which was part of the original deal, in view of the fact that the property market has generally fallen back in recent years; and if he will make a statement on the matter. [40180/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Under the terms of the Indemnity Agreement reached with the Religious Congregations on 5th June 2002, the Congregations agreed to make a contribution of €128 million towards the cost of the Redress Scheme. This sum was broken down as follows:

Property Transfers €76.86m;

Cash Contribution €41.14m;

Provision of Counselling Services €10m.

In actual terms, whilst the overall figure of €128 million has not altered, the form in which it has or is to be transferred to the State has altered somewhat in terms of the property and cash contributions. This is because the Indemnity Agreement allows for cash to be substituted for property. The composition of the €128million has changed to the following:

Property Transfers €66m;

Cash Contribution €52m;

Provision of Counselling Services €10m.

I can confirm that the full cash contribution of €52m has been received, including that which was accepted in lieu of properties. My Department has also received confirmation that the contributing congregations have provided counselling services to the value of €10m.

As a result of the Indemnity Agreement, my Department agreed in principle with CORI that a total of 64 properties would be accepted, subject to good and marketable title and agreed valuations. Valuations of the individual properties were fully agreed and fixed at 2002 values. Consequently, the fact that the value of the properties may have fluctuated in the intervening period does not affect the value of the properties as determined by the Agreement.

Furthermore, it should also be noted that the current market value of the properties is not critical from the State's point of view in that the vast majority have already been earmarked for specific purposes, for transfer to and use by various charitable organisations and state bodies. The issue of current market value would only arise where the State intended to sell on a transferred property. The value to the State in receiving the properties in question lies in their use by the recipients for various health, education and other social purposes.

Given the complex and time consuming nature of property transfers, it is difficult to state with any degree of certainly when the entire portfolio of property will be fully and finally transferred to the State. However, I am anxious to point out that whilst the legalities have not been finalised in all cases, with the exception of two, the properties are currently in use or are available for use by the transferee. Currently, properties to the value of €26.79m have been fully transferred and a further €7.475m worth of properties have been handed over where legal arrangements are almost finalised. This leaves a balance of properties valued at €31.735 where the legal transfer remains to be completed. However, in the vast majority of the properties, good and marketable title has been fully established or the properties have been physically transferred to and are in possession of the State or 3rd Parties but there are some legal formalities to be finalised. In a small number of cases, consideration may have to be given to accepting an alternative property or cash where good and marketable title cannot be established.

Every effort will continue to be made by officials of my Department, through the State's legal representatives, together with the representatives of the congregations and recipient bodies, to ensure that all outstanding matters are finalised.