The Smurfit Group is set to substantially reduce its interests in the leisure industry. Chairman, Dr Michael Smurfit, told shareholders yesterday that its initial investment in that sector had been purely tax driven. "If you were to ask me are we committed to it in the long term, the answer is no."
Responding to shareholders' questions at its annual general meeting in Dublin, Dr Smurfit stated that the group had invested between £35 million and £37 million in leisure projects, principally, the K Club in Co Kildare. It also has a 50 per cent stake in the Dublin health club, The Riverview, and is in the process of selling its small interest in the Waterford Castle hotel and golf club.
When asked about the merger of its JS Corporation associate with the US Stone Container group, which is expected to be completed later this year, Dr Smurfit said he was unable to make any comment on the deal, citing legal reasons.
The chairman was also asked to disclose the group's donations to charity, and to the various political parties. He explained that most charitable contributions were paid through the JS Foundation, adding that the overall level of such donations had dropped somewhat, because of a decline in group profits.
On the political front, he said Smurfit did provide financial support for political parties, but refused to be more specific. "We don't have to give that information and we don't intend to. But we will of course comply with any new legislation in this area."
