The terms of the departure of the former director of Abbey, Mr David D'Alton, have been agreed and all matters between him and the house building company have been "fully settled", the executive chairman of the group said yesterday.
After the company's a.g.m., Mr Charles Gallagher had no comment to make on the suggestion that Mr D'Alton had bought in Lucan, Co Dublin, after Abbey had apparently declined to proceed with a deal for the same plots last year.
Mr D'Alton, Abbey's former director of Irish operations, was suspended in early July after his intention to establish a property development company became known. At the time, he said the suspension was unjustified and he resigned from the company.
Mr Dick Short, buildings manager of Abbey's house building division, Kingscroft Developments, has replaced him. "As far as I am aware, everyone is satisfied with the outcome," Mr Gallagher said. He stated the group was in strong shape and its newest scheme, Hayden's Park in Lucan, with 160 plots, was due to be presented formally.
The latest site Abbey has acquired is in Calverstown, near Kilcullen, in Co Kildare, where 20 detached bungalows are planned.
Mr Gallagher said the British house-building division was "enjoying buoyant trading conditions" and had been able to maintain its land bank at about 1,500 plots.
"We have been able to maintain our land bank at what we believe to be reasonable prices."
The recent increase in British interest rates had not affected the market, he said.
He hoped the period of high house inflation in the Republic was over. "The very rapid increases in prices is putting pressure on costs. It is potentially destabilising."
Across the group, Mr Gallagher said "a lot of things were in place" to enable the group to achieve its "medium-term target" of 1,000 units a year, last achieved in 1988.
Abbey expects to build around 300 houses this year in the Republic, rising to a projected 350 in the next financial year.
Mr Gallagher said the group had been affected by the scaffolders' dispute in the last financial year "and we are, to some extent, held back by planning and services".
