Fianna Fail is set to clear its debt for the first time in many years through the sale of its prestigious Dublin 2 headquarters which will be put on the market next month.
The sale will not only clear the £1 million owed to financial institutions, but will also give the party a substantial cash windfall in what may be an election year. It is difficult to predict the sale price of the building in Upper Mount Street, but property experts suggest £2 million.
Fianna Fail finally signed a lease on its new offices in Dublin's Lower Mount Street last week, clearing the way for the sale of the substantial building in neighbouring Upper Mount Street. The building to be sold Aras de Valera, has been occupied by the party for some 70 years.
The party general secretary, Mr Martin Mackin, said yesterday that the timing of the sale had nothing to do with the idea that this might be an election year - a proposition which, of course, the party rejects.
The sale has been in the pipeline for three years, he said. "We have believed for some time that an old-fashioned Georgian building is no longer suitable for the operation of a modern political party."
The new premises, which are being leased, consist of a large open-plan office space with a number of separate offices and meeting rooms. They have been refurbished to the specific requirements of the party.
It will be designed to house 14 staff, with an increase in numbers around the time of ardfheiseanna and elections. The party will be on one floor of an office building occupied by other commercial clients.
The cash windfall for Fianna Fail will come as Government proposals to increase spending limits in the next general election come before the Oireachtas.
The increased limits would allow Fianna Fail spend roughly an extra £1 million nationally, and the Opposition parties claim the change will benefit Fianna Fail disproportionately as that party is the most efficient at raising money.
Mr Dempsey has defended the increases, saying he had indicated his intention to make the changes some time ago as he believed the existing limits to be unreasonably low.
The 1997 Electoral Act provided for expenditure limits of £14,000 per candidate in a three-seat constituency, £17,000 per candidate in a four-seater, and £20,000 per candidate in a five-seater. The Minister for the Environment has proposed increasing these limits to £20,000 (an increase of 43 per cent), £25,000 (an increase of 47 per cent) and £30,000 (an increase of 50 per cent) respectively.