OFFICIALS from the Department of Energy advised a former minister, Mr Bobby Molloy, to deal "exclusively" with the cement company, Roadstone, on the private sale of valuable State land in Blessington, Co Wicklow, he has said.
Mr Molloy gave his approval of the approach to Roadstone's offer on November 14th, 1990, after he was told it was the only company to have made "any meaningful approach" in regard to the 147 acres at Glen Ding Wood.
Attempts are being made to have the Dunnes Payments to Politicians Tribunal investigate the circumstances surrounding the sale by private treaty to Road stone Dublin Ltd, whose chairman at the time was the late Mr Des Traynor.
The Blessington Heritage Trust will be asking the tribunal to inquire whether companies other than Dunnes Stores were approached to raise money for former Taoiseach Mr Charles Haughey.
Roadstone Dublin Ltd said in a statement: "The apparent attempt to create a connection between Road stone's purchase of its lands at Blessington and CRH's former chairman, Des Traynor, is a mischievous and spurious attempt to damage Roadstone's reputation. As a nonexecutive chairman, Mr Traynor had no role in identifying or negotiating any Group purchases."
Mr Brendan Johnston, a company director who made a bid for the same land, was told by officials from the Department of Energy that the site had been sold on the day before he was due to formally meet them and discuss his proposal in December 1990, it has been learned.
Letters from his solicitors to the Department of Energy following the rejection of his offer show that the Department was only prepared to accept "unconditional offers" for the land, which was sold by private treaty.
No comment was made by the Department to his conditional offer of £1,150,000, which he submitted as an alternative bid.
However, conditions were attached to the £1.25 million purchase of the property by Roadstone Dublin Ltd (owned by CRH) in June 1991, including the issuing of a licence to clear trees from the site.
Mr Frank Corcoran, chairman of the Blessington Heritage Trust, has estimated that the sand and gravel was sold to Dublin Roadstone Ltd for 2p a tonne and is now worth about £6 a tonne.
"From an examination of the Forestry Service's estimates of the tonnage of sand and gravel and from Road stone's own planning application, it would appear that the sand and gravel was sold at 2p a tonne, whereas the sand and gravel deposits and the residual value of the land were worth between £30 million and £50 million," he said.
"However, since the hill contains at least three distinct periods of archaeological remains, it is in fact priceless and irreplaceable. Had the site been advertised for sale, we would have been put on notice and given an opportunity to question the wisdom of selling such an invaluable site."
Mr Molloy said in a statement in response to queries from The Irish Times that consultants commissioned by the Department had expressed serious doubts that any offer remotely close to Road stone's would be made from other sources without planning permission. This was because of the proximity of Roadstone's adjacent land.
"The officials advised that Roadstone had special advantages insofar as obtaining planning permission was concerned, and, on the basis of the best professional advice, there were compelling reasons to confine negotiations to them," Mr Molloy said.
"The alternative, they said, was to offer the property for sale by restricted tender to select promoters but they warned that if this process failed to produce a better offer, as they believed it would, then the Department would have effectively strengthened Roadstone's bargaining position.
"For these reasons, the officials recommended to me that the Department confine negotiations to Roadstone exclusively in order to try and get what was considered the very best deal."
Mr Molloy said his approval of the Department's approach to Roadstone's offer contained the following stipulation: "Rejection of any condition linking the Department to obtain planning approval in any shape or form".
Asked when Roadstone's bid was first received and how the company became aware that the land was for private sale, Mr Molloy said this information was not available. "The current Minister for Agriculture has custody of the files and can supply this information."
Mr Johnston, meanwhile, has said he wants answers to why he was told in December 1990 that he was too late to buy the land at Glen Ding, when the sale was not completed until January 1992.
"They should have negotiated with me as the highest unconditional bidder, but they treated me as if I was a nuisance," he said.
Last month, the Minister for Agriculture, Mr Yates, in a written reply to concerns raised by his Government colleague, Mr Emmet Stagg, said Roadstone's offer was considered the best possible outcome to the disposal of the land at Glen Ding and that the second offer was late.
Roadstone Dublin Ltd has said it contacted the Department of Energy Forest Service in 1987 with a view to buying 147 acres of land adjacent to its Blessington operations. Its offer of £1.25 million was submitted in October 1990 and the sale was completed in 1992.
"Far from getting a bargain, the Department recognised that they had CRH over a barrel and that the Glen Ding reserves were worth more to CRH than to anyone else. This was due to the substantial investment already committed in Blessington by the company and the proximity of its existing operations to the 147 acres."
The statement added: "Road stone conducted all negotiations and the completion of the purchase in a totally professional and ethical manner. The exaggerated valuations suggested by some are nonsense. The price paid represents a very full valuation and was far higher than prices achieved for similar sites in the locality."