Treasury Holdings last night rejected criticism of its plans to develop extensive CIÉ land in the Spencer Dock area of Dublin. Its co-owner, Mr Richard Barrett, said the State transport group secured the best deal possible and would have received significantly less for the 42.2 acres if it had been auctioned or sold on the open market.
He said: "It is a wasteland and they would have got a wasteland price and they would have got screwed."
Mr Barrett's defence of the deal follows strong criticism by Opposition figures and the former Minister for Public Enterprise, Ms O'Rourke, who questioned CIÉ's projected returns from the 1998 contract. CIÉ will be paid 17.5 per cent of the rents from property developed on the site by Treasury. The transport group's board has said the deal could generate more than €345 million.
On Wednesday night, the outgoing Minister for the Environment and Local Government, Mr Dempsey, approved a revised development proposal for the 82-acre North Lotts area. This enables the Dublin Docklands Development Authority to initiate a fast-track planning process for the scheme.
Mr Barrett anticipates approval by the authority's board and said Treasury was ready to turn the sod on the plan the day after permission was received. The company has already spent in excess of €20 million developing the €1.3 billion plan. Inflation during delays in the planning process had increased the investment required by 30 per cent, he said.
Among the last large-scale development sites in Dublin, Spencer Dock lies between the IFSC and other unused land towards the Point Depot at the East Link. Like Treasury, the CIÉ board has claimed the arrangement was the "best way" to achieve the highest value for the site.
Mr Barrett said: "They got a good deal and it isn't fair to say they got the thin edge of the wedge. The simple fact is they are going to receive more out of the deal than the figures showed when they said they'd do the deal. What would have been exceptional would be if the deal wasn't done in this way."
Mr Barrett claimed "numerous" articles had implied the deal was a negative one for CIÉ. "If that had happened, what you would have is a public disgrace," he said. "I'm clearly saying it is not."
He added: "This is a deal about which there are no secrets. There are no secrets other than the exact financial calculations."
Legal and property firms had endorsed the deal for CIÉ, Mr Barrett said. "They took advice from successive firms. Why did they think it was a deal?"
The scheme of arrangement approved by Mr Dempsey was submitted last August to the Government. It is a revision of an initial plan rejected by An Bord Pleanála. The Taoiseach, Mr Ahern, described the original development as a "monstrosity".
Mr Barrett said there had been thorough consultation with all relevant bodies. Some 1,000 jobs would be created in the construction phase. Up to 3,000 apartments and homes will be built, in addition to many office, entertainment and leisure developments.
A national conference centre is proposed but has not yet been approved by the Government.
Treasury and its associates donated €21,432 to Fianna Fáil last year and €63,487 to the Progressive Democrats. Mr Barrett said the donations were a matter of public record. The company was willing to donate again. "We'd contribute to political parties who espouse ideas we think are worthy of support," he said. "I don't mind giving money to parties who have good ideas."
Mr Barrett said he had no comment to make on reports that Treasury Holdings had renewed its interest in acquiring the quoted property firm Green, which is the subject of a management buyout proposal.
