Jackson Way road dispute is hard to untangle

Who or what is Jackson Way and why does it want €116 million of taxpayers' money? Paul Cullen explains

Who or what is Jackson Way and why does it want €116 million of taxpayers' money? Paul Cullen explains

Astronomical profits and the whiff of corruption - the story of a 106-acre land parcel in Carrickmines is emblematic of the tarnished legacy of 1990s boomtown Dublin.

In 1988 what was then farmland was sold for just over €685,000 (£540,000). Today the present owners, Jackson Way Properties, claim 22 acres of these lands are worth €116 million. Along the way serious allegations have been made.

The two brothers who sold the land to businessman Mr Jim Kennedy told gardaí in 1989 that they were informed payments would have to be made to "certain people" to get it rezoned for development. But investigating detectives decided that Mr Kennedy's talk was "merely business tactics to impress the vendor". "There is no evidence of a crime," they concluded.

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Ownership of the land was vested in an Isle of Man company, Paisley Park Investments. The lobbyist Mr Frank Dunlop was drafted in to lobby the council for the rezoning of the lands. Paisley Park was liquidated in 1994, and ownership passed to an English-registered company, Jackson Way.

The Flood tribunal is investigating allegations that Paisley Park and/or Jackson Way paid substantial amounts to county councillors for votes on a rezoning motion in 1993.

Some 24 acres were rezoned for industrial use in the Dún Laoghaire-Rathdown County Development Plan 1998.

So who owns the land? Control of Paisley Park was vested in holding companies in the Isle of Man, the British Virgin Islands and Panama. But the tribunal believes both it and Jackson Way have overlapping ownership, that the owners are Irish and that they have gone to elaborate lengths to disguise their identities.

It also believes the change of ownership is "an elaborate charade". Wherever this trail leads, it starts with Mr Kennedy's purchase of the land in the 1980s.

One of Mr Kennedy's closest associates is Mr Liam Lawlor. In spite of earlier denials that they had a business relationship, the TD has been involved in numerous ventures with his long-time friend. He has also worked with Mr Dunlop. But Mr Lawlor told the Fianna Fáil inquiry in 2000 that he had "no knowledge" of Jackson Way.

Another associate is Belfast solicitor Mr John Caldwell, who found himself in trouble last year when he "went to ground" after the tribunal ordered him to give evidence. Mr Dunlop has identified Mr Caldwell to journalists as the owner of Jackson Way. Mr Caldwell says he has no beneficial ownership in the company, but adds: "The lands are held to my order." He is due to be questioned on his links to the company later this year.

Jackson Way's lawyers went to the Supreme Court to avoid having to disclose its ownership structure. Solicitor Mr Stephen Miley claimed he was prevented by rules of client-solicitor confidentiality from revealing the identity of his clients.

The High Court rejected this claim in January 2001, and his appeal to the Supreme Court was struck out in March after he reached a compromise with the tribunal. Because the tribunal has not held hearings into the matter since then, it is not clear whether it now knows who owns the company.

Jackson Way also took legal action that threatened to halt construction of the south-eastern motorway scheme. Of the 106 acres at Carrickmines, 22 have been compulsorily purchased for the motorway. Another 24 acres to the north have been rezoned for industry, while the rest remains as agricultural land.

Because the road would run through its lands, the company wanted an overpass to join the two parts. This would maintain the development potential of the hilly terrain south of the motorway. The company reached a settlement just before the matter was due to come before the Supreme Court in December 1999.

No one disputes the fact that the company is due compensation arising from the construction of the motorway. But the amount sought, and the fact that the demand comes from a foreign-registered company under investigation by the tribunal that will not reveal its owners, has caused consternation.

The rezoning of the 24 acres north of the motorway for industrial use could be revoked if irregularities were found. But what chance would the State have to recoup money if it doesn't even know who to ask?

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.