Joan Burton (Dublin West, Labour)
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Question 373: To ask the Minister for the Environment, Heritage and Local Government the total loss to the Exchequer to date arising from the purchase of the Irish Glass Bottle site for €412 million by the Dublin Docklands Development Authority in 2006; and if he will make a statement on the matter. [25630/10]

John Gormley (Dublin South East, Green Party)
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In 2006, the Dublin Docklands Development Authority took a 26% share in Becbay Limited, a joint venture with Bernard McNamara (through his company Donatex) and Derek Quinlan (through the company Mempal), which purchased the Irish Glass Bottle (IGB) site. A €288 million loan to Becbay Limited was provided jointly by Anglo Irish Bank and AIB. It is a non-recourse loan largely secured against the land, with the exception of €111.9 million that is secured by guarantees of the three shareholders in proportion to their respective shareholdings. The Authority also invested equity of €43 million which was used primarily to remediate the site.

In terms of the Authority's liability arising from the deal, at end 2009 this comprised a principal guarantee on its 26% share of the loans, totalling €29.1 million, and €5m interest accrued on its share of the loans for 2009 (interest to end-2008 had been paid by all shareholders). This leaves a current liability of some €34.1 million, although interest continues to accrue at a rate of €5m per annum until such time as the loan is terminated. I understand that the Becbay loans have now transferred to the National Assets Management Agency and that NAMA has requested Becbay Ltd. to submit a detailed business plan in relation to its outstanding debts by end July. Looking at the wider State sector's position arising from the transaction, it should also be noted that the Dublin Port Company received some €138 million in respect of its share of the proceeds from the IGB site sale.