Three directors of a successful property development group paid €14 million into their pension fund last year, according to accounts filed recently.
Husband and wife Martin and Angela Cotter, directors of the Park Developments group, and fellow director Paul Sheeran received pension payments totalling €14 million in 2005, on top of other remuneration totalling €1.5 million, according to the group's accounts.
In 2004, total pension payment to directors of the Park Developments group were €3 million.
None of the directors could be contacted for comment yesterday.
Up to December last, there was no ceiling on the size of a pension fund that could qualify for tax relief.
In his budget speech in December 7th, 2005, Minister for Finance Brian Cowen introduced an immediate freeze on tax relief on contributions towards individual pension funds valued at more than €5 million.
There had been widespread expectation that some such move was to be announced and many companies made unusually large pension fund contributions to senior executives in the period prior to the speech.
The Park Development group is a very successful property development business involved in residential, commercial and industrial developments.
It is currently involved in the development of Hanover Quay, Dublin, the Gallops, Sandyford, Dublin, Leopardstown Shopping Centre, Dublin, and the Park retail and commercial development in Carrickmines, Dublin, as well as many other schemes.
Turnover for the group in 2005 was €113.7 million, down from €143 million the previous year. Pretax profits were €4.4 million, down from €16.6 million the previous year, a drop in profitability that broadly reflects the increased pension payment to the directors.
All turnover arose in the Republic.
A breakdown by sector showed almost half of revenue, €47.9 million, arose from residential developments, with commercial/industrial providing €36.9 million and joint ventures providing €28.8 million.
At the end of 2005, the group had accumulated profits of €71 million.
The notes to the group's accounts list the principal risks facing it. They are: a downturn in the property market; an increase in interest rates; a change in property tax incentives; a slowdown in the economy generally; a shortage of development land, and unexpected delays in pending planning permissions.
Including executive directors, the group employed an average of 167 people during the year, down from 179 people the previous year. The associated payroll costs were €32.3 million, up from €18.6 million the previous year. Pension costs were €14.5 million, up from €3.5 million.
The joint ventures the group is involved with include the proposed marina and landside development in Greystones, Co Wicklow, and the partnership developing Hanover Quay in Dublin.
