Those behind the controversial shelf company Jackson Way Properties Ltd do not expect it to be "condemned" by the Flood tribunal, a lawyer for the company said yesterday.
Mr Hugh O'Neill SC made reference to the Flood tribunal's inquiries into the activities of Jackson Way on the final day of the hearing in Dublin of a compensation claim by the company against Dun Laoghaire-Rathdown County Council for €47 million.
On the final day of the compensation hearing yesterday, the arbitrator, Mr John Shackleton, was told by Mr Dermot Flanagan SC, for the council, that there were still uncertainties surrounding title to the Jackson Way lands.
If title cannot be produced, no compensation will be paid. However, if title is vouched it is likely the county council will have to bear the full costs of the 16-day hearing following a ruling made by Mr Shackleton.
He ruled that a so-called "unconditional offer" of compensation made to Jackson Way by the council prior to the hearing was invalid because it had conditions attached.
The claim against the council follows the compulsory acquisition of 20 acres of Jackson Way lands in south Dublin for the completion of the South Eastern Motorway. The council believes the company is entitled to compensation but in the lesser sum of €7.6 million.
Mr O'Neill, in his closing submission, said the council had suggested Jackson Way's lands, which are divided in two by the motorway, were more likely to be rezoned for residential use after the motorway was built, increasing their value. The lands, which run to over 100 acres, are now mainly zoned for agricultural use, with a small portion zoned industrial.
However, Mr O'Neill said it was significant that there was a motion before the council seeking to have the industrially zoned lands returned to their original low-value agricultural status.
He said this was happening even though the Flood tribunal had not condemned Jackson Way and "it's the view of my clients that it certainly won't".
The English-based company is under investigation by the tribunal following allegations it made payments to county councillors for land rezoning. The tribunal will resume hearings on this issue later this month.
Mr Shackleton also ruled that Jackson Way should be entitled to the cost of reinvesting its compensation. The council said it was its practice to pay such costs "where an income-generating property investment is being compulsorily acquired from a person or company who is bone fide engaged in the business of property investment in the State". It pointed out that Jackson Way was an English-based company.
Mr Shackleton said there was no doubt the company's director Mr Alan Holland gave evidence the money would be reinvested in the State so it was entitled to costs. Jackson Way has sought €3.8 million in reinvestment costs.
Earlier, Mr O'Neill in drawing attention to Mr Holland's evidence, said it had not been put to him by the council that he was telling lies when he said the money would be reinvested in the State so the council could not now cast doubt on what he said.
He said it was undoubtedly the case that Jackson Way was a shelf company. "I would suggest many corporations - Microsoft, IBM whatever - started life as shelf companies," he said.Mr Shackleton, who reserved his decision on the amount of compensation to be paid, is not expected to issue his recommendation for some weeks.