Inquiry begins into sale of Glen Ding woodland to CRH

Moriarty tribunal: An inquiry into the sale of 145 acres of State land near Blessington, Co Wicklow, began at the tribunal yesterday. The Glen Ding woodland, containing sand and gravel deposits, was sold to Cement Roadstone Holdings (CRH) in 1991 for £1.25 million without going to public tender.

In his opening statement, counsel for the tribunal Jerry Healy SC said they would investigate the sale of the land and any role played in it by former chairman of CRH Des Traynor, and any links with former taoiseach Charles Haughey and the conduct of his affairs.

He said they would also look at the conduct of the disposal and the connection, if any, with the Ansbacher accounts.

The sale of Glen Ding attracted criticism when it became known that no party other than Roadstone had been invited to bid for the land. This was even though a number of other bodies had expressed interest.

At the time the State was selling off about 30 forests but Glen Ding was the only forest not to involve a public-tender process.

Mr Healy said in response to a Dáil question put down by Deputy Gemma Hussey in 1988, who asked if the land would be advertised openly before being sold to the "neighbouring concern ", Ray Burke, the then minister for energy, gave a commitment that tenders would be invited.

However, there were subsequent ministerial and administrative changes in the department, and offers from up to five other parties were never followed up.

On November 14th, 1990, Bobby Molloy, then minister for energy, agreed that the department could negotiate exclusively with CRH, and could seek £1.5 million for the land but accept £1.25 million.

Mr Healy said potential purchaser Johnston Industries was given permission by the department to walk the lands with a view to making an offer on December 5th, 1990. Yet on the same day Department of Energy officials closed negotiations with CRH.

Bernard Johnson, owner of the company, threatened legal action against the department and was given an opportunity to bid for the land. He was not told how much the department wanted and his bid was deemed unsuccessful. The sale to CRH went through.

Mr Healy said an independent consultant, Lockwood consultants, reporting to the tribunal, subsequently found that the purchase price paid by CRH was "in the order of the market value" for the time, and the department contended it used "sound commercial rationale" in making its decision.

He said there may have been a "significant erosion of corporate memory" but questions still needed to be answered.

"The disposal may have been carried through in a way that deviated from department guidelines," he said. "Was this a justifiable deviation?"

He said the effect of the deviation was to make CRH the sole interested party, giving it a "clear run" to bid.