The State has lost more than €1 million on the sale of a hotel it bought to accommodate asylum seekers but never used.
The Office of Public Works (OPW) purchased Lynch's Lodge Hotel in Macroom, Co Cork, in 2000 for €3.5 million and sold it last month for €2.4 million, it emerged yesterday.
In addition to the loss on the property, the State spent €808,000 on security and renovation costs on the hotel over the five years. The property could not be used because of legal challenges mounted by members of the public against its use, according to the OPW.
In total, the OPW confirmed to The Irish Times that it has spent at least €17 million acquiring accommodation for asylum seekers which was never used.
The properties, all of which were the subject of legal proceedings, were bought between five and six years ago, when there was a significant increase in the number of asylum seekers arriving here.
They include: Broc House, Dublin 4, which was bought by the OPW for €9.2 million in 2000. More than €600,000 was spent on security until it formed part of an affordable housing initiative in November last year.
Devereaux Hotel, Rosslare, Co Wexford, was bought for €2.7 million in 2000. It was never used and sold for €1.8 million in 2003. Ionad Foilain, Myshall, Co Carlow, was bought for €1.3 million in 2000. It was transferred to the Department of Health in 2002.
The latest disclosure relating to the sale of the Lynch's Lodge Hotel was described as "incredible" yesterday by Fine Gael spokesman on Justice Jim O'Keeffe.
"How anybody could succeed in being involved in a property deal in the Celtic Tiger era that lost a substantial amount of money defies belief," he said.
Mr O'Keeffe added that when the total outlay of the State was taken into account, the figure came out at over €4.3 million, which meant that the State had lost almost half its investment in the property.
The OPW said legal proceedings initiated by locals seeking to stop its use for housing asylum- seekers meant it was never used. The proceedings were resolved last year. Due to falling numbers of asylum seekers arriving here, the OPW sought to find other uses for the building.
"No such use was identified; therefore we offered the building for sale by public tender. The building was not nor could be sold as a going concern," the statement said. "Much has been made of the supposed loss of monies in this particular case. This was the market value availed of by the OPW through a public tender competition. If comparisons are to be made then consider the €171 million received for a two-acre site sold recently in Dublin 4."
Mr O'Keeffe remained adamant, however, that the sale of the Macroom hotel represented a major loss to the State. "This is just incredible but I suppose that we should not be surprised that Tom Parlon and Michael McDowell have managed to lose another bundle of money for the taxpayer. In the light of the way they handled the Thornton Hall purchase I suppose we should not be surprised," he said.