STATE AGENCY Shannon Development’s “pension hole” increased by 31 per cent or €9 million to €38 million last year as the agency’s accounts confirm the deterioration of the company’s finances.

In newly published accounts to the end of 2008, it emerged that Shannon Development recorded a pretax deficit of €5.6 million compared to a surplus of €744,000 in 2007.

The Shannon-based State agency is self-financing, but depends largely on leveraging its property portfolio across the Shannon region to fund activities.

The accounts show that the agency’s operating deficit last year was €15 million – an increase on the €12 million operating deficit in 2007. However, the deficit last year was reduced to €6.3 million after the profits of €8.7 million from the sale of assets was taken into account.

The accounts show that the company had revenues of €33.7 million last year – a drop of €400,000 on the €34.1 million in 2007.

According to the directors’ report, the company is drafting a new strategic plan, which will cover the period from 2009 to 2013 and will deliver its mandate consistent with policy objectives.