Comptroller and Auditor General

Special Report

Department of the Marine and Natural Resources

Sale of State Lands at Glen Ding

Co. Wicklow

December 1998
 © Government of Ireíand 1998
ISBN 0-7076-6708-9

The report was prepared on the basis of information, documentation and explanations
obtained from the parties referred to in the report.

The draft report was sent to the Accounting Officer oí the Department oí the Marine and
Natural Resources and his comments were requested. Where appropriate, these comments
were incorporated in the final versión of the report.

P. 61536 Gr.30-0] 800 1/99 Brunswick Press Ltd.

Specíal Report of the Comptroiler and Auditor General

Sale of State Lands at Glen Ding, Co. Wicklow

I liave, in accordance with the provisions of Section 9 of the Comptroiler and Auditor
General (Amendment) Act, 1993, carried out an examination into the sale of State lands at
Glen Ding, Co. Wicklow.

I hereby submit my report of the above examination for presentation to Dáil Éireann
pursuant to Section 11 of the said Act.

jbmi Purcell
Comptroiler and Auditor General

17 December 1998
 Table of Contcnts

Page

Sale of State Lands at Glen Ding, Co. Wicklow

1 Basis for Examination 1

2 The Property 2

3 Initial Interest 3

4 Archaeological Aspects 3

5 Pre-sale Considerations 3

6 Sale Process 5

7 Disposal Process 7

8 Conclusions 8

9 Accounting Officer's Comments 10

Appendices

A Chronology o£ Events Leadlng to Sale

B History of Johnston Industries Interest in Property

 Sale of State Lands at Glen Ding, Co. Wicklow

1 Basis for Examination

1.1 In line with the standing orders of the Committee of Public Accounts I was requested
in prívate communication to examine the sale by the former Department of Energy
of lands at Glen Ding, Co. Wicklow in 1991. On 12 October 1998 I acceded to that
request insofar as I agreed to examine the Departmental papers regarding events
leading up to and germane to the sale and to repon my findings. The examination
was carried out under Section 9 of the Comptroller and Auditor General
(Amendment) Act, 1993.

1.2 Before commencing the examination my officers met with officials of the Department
of the Marine and Natural Resources who now hold the relevant files to outline the
background to and the extent of the proposed examination. The officials assured us
of their full co-operation (which was given ) and made all the relevant files available.
They also confirmed that the files presented were the full extent of papers in their
possession.

1.3 Following the review of Departmentalfiles,papers supplied to me by Mr. Dick Roche

TD were examined.

1.4 The report is based on my examination of both sets of documentation. A draft of this
report was sent to the Accounting Officer of the Department and comments were
requested. Where appropríate, these comments have been incorporated into this
report. The statements attributed in this report to third parties are based solely on the
Department's notes.

1.5 The Departmental papers consisted of the following files:

• File no. EF61/21/89, Parts 1,2 and 3 - Blessington Forest, Glen Ding Wood
These files contain the papers relating directly to the sale.

• File no. B29/12/12 - Blessington Forest, Application for land to construct a

silt pond - Roadstone Ltd.
This file relates to the sale in 1981 of 16 acres adjoining lands previously sold
to Roadstone in 1972. The plot was required for the construction of a silt
pond for that company's quarrying operations.

• File no. B29/12/17 - Blessington Forest, re Sale of Sand and Gravel site,
Hudson Bros., Brittas.
File relates to an unsuccessful request by Hudson Bros, in 1987 to purchase
sand and gravel deposits in the Blessington area.

A.1
 Sale of State Lands at Glen Ding, Co. Wicklow

1.6 The purpose of the examination was to establish from documentary evidence the facts
and chronological order of events leading to the sale and to form an opinion as to
whether proper procedures were followed and whether the disposal had been effected
upon the most favourable terms reasonably obtainable.

1.7 The background and details of this sale have been in the public domain for some time.
There has been sustained media interest and the sale has been the subject of several
Dáil Questions. A chronology of events leading to the sale is included at Appendix
A. Due to the public interest shown in this matter the ñames of all interested parties
are given, though this is not the normal practice in my reports.

2 The Property

Glen Ding Wood forms part of the townland of Deerpark situated about 1.5km
northwest of the town of Blessington, Co. Wicklow. The property which is under
forestry consists of 72.9 hectares and was one of a number of sites retained by the
former Department of Energy on the establishment of Coillte Teo. in 1989 because
the property was believed to contain valuable deposits of sand and gravel. It is
regarded as a high amenity area adjoining the public road between Blessington and
Naas. It is frequented by the public and is visible from the town of Blessington.

3 Initial Interest

3.1 In July 1987 representations were made to the Minister of State for Forestry by the
late Sean Walsh TD on behalf of Hudson Bros. Ltd., suppliers of building materials.
The representations expressed the company's interest in purchasing or leasing lands
with sand and gravel deposits in the ownershíp of the Department in the Blessington
area. The Minister of State replied in October 1987 stating that the sand and gravel
deposits were required for State afforestation purposes and as such were not available
for sale. The reply also stated that even if the deposits were available for sale the
property could only be offered for sale by public tender competition.

3.2 From September 1987 onwards, the disposal of surplus State property was being
considered by all Government Departments on foot of a Government decisión in July
1987 that a programme for the sale of surplus State properties should be devised and
the receipts therefrom used to redeem the national debt. It was in this context that the
Forest Service of the Department of Energy identified its lands at Glen Ding,
Blessington for possible disposal.

3.3 Interest shown in the property had alerted the Department to its potential sale valué
particularly in the light of the sand and gravel deposits that it was believed the site
contained. In addition to Hudson Bros. Ltd. the following expressions of interest were
receíved:

2
 Sale of State Lands at Glen Ding, Co. Wicklow

• On 28 August 1987 Roadstone Dublin Ltd. wrote to the Department stating

that they were anxious to purchase the Department's Deerpark lands if they
were available for sale.

• An undated letter was received in late 1987 from a Michael Kavanagh, Sand
and Gravel Contractor offering £50,000 for five acres of the property.

• The papers indicate that interest was also expressed by Tracey Enterprises
Dundrum Ltd. in early 1988.

• On 10 April 1989 Brendan Johnston of Johnston Industries expressed an

interest in any sand and gravel bearing lands under the control of the
Department and from December 1989 onwards expressed continuing interest
in specifically acquiring the Glen Ding property.

4 Archaeological Aspects

4.1 On 28 June 1988 the Department requested the Conservation and Recreation Branch
of the Office of Public Works (OPW) to advise whether two areas included in the
property were of archaeological significance.

4.2 OPW replied on 21 July 1988 that the Chief Archaeologist had inspected both sites.
He confirmed that one of the sites is only a dried up pond or small lake and is not of
archaeological importance. However, his opinion was that 'the other site is an
impressive ringfórt strategicaily located witk possible Vikingassociations'. The reply also
stated that in view of the archaeological importance of this site, which is one of the
finest of its type in the country, the Commissioners of Public Works were very
interested in acquiring it and the surrounding area.

4.3 Subsequently the ringfórt (Rath Turtle Moat) and an associated area of land,
comprising 14.22 hectares, was transferred to OPW leaving a net area for sale of 58.65
hectares.

5 Pre-Sale Considerations

Sand and Gravel Deposits

5.1 In April 1988 the Geological Survey of Ireland (GSI) was commissioned by the
Department to assess the extent and quality of the sand and gravel deposits. The GSI
reporting in June 1988 concluded that:

• The sand and gravel consisted of approximately 7.4 million cubic metres of

3
 Sale of State Lands at Glen Ding, Co. Wicklow

good quality material and 2.6 million cubic metres of lesser quality material.

• Sand and gravel extraction might conflict with the site's present use as an
amenity area.

Planning Permission

5.2 As it was believed that the valué of the property would be greatly enhanced if
planning permission for sand and gravel extraction was obtained prior to sale, the
Department made contact with Wicklow County Council with a view to securing
such permission.

5.3 On 8 September 1989 the consultants appointed by the Department (see 5.5) wrote
to the Department outlining the many planning difficulties they foresaw following
discussions with officials of the County Council. On 16 September the consultants
informed the Department that Wicklow County Council had advised them that they
would require an Environment Impact Assessment to be carried out for their
consideration of the planning permission appücation.

Valuation of Property

5.4 In April 1990 the consultants appointed by the Department, in association with a firm
of Minerals and Environmental Science Consultants, valued the property at £1.26
million with planning permission and at £821,000 without planning permission. The
valuation was based on the capitalisation of the discounted royalties for the life of the
deposit estimated at 20 years and excluded the valué of the timber. The consultants
were also of the view that:

• Planning approval would be difficult for a new operator because of access

difficulties and traffic implications for Blessington

• There would be resistance to a change of use of the property because of its

amenity valué to the community

• Roadstone Ltd, because of their proximity, were considered to be very special

adjoining owners whose access to the site would give them an advantage over
other potential operators.

Engagement and Cost of Consultants

5.5 A file note in August 1988 states that the Department 'should cali in for díscussion the
consultant as advised by Wicklow County Council and make a start in obtaining outline

4
 Sale of State Lands at Glen Ding, Co. Wicklow

planningpermistión' Discussions began with Kieran O'Malley and Co. Ltd., Civil
Engineering and Town Planning Consultants ID October 1988 and in June 1989 the
firm was formally appointed to carry out an appraisal of the site from the point of
view of obtaining planning permission prior to disposal.

5.6 As pan of the valuation process Kieran O'Malley & Co Ltd. engaged John Barnett,
Minerals and Environmental Consultants in April 1990 (see 5.4).

5.7 The overall cost of these consultancies was £17,776.

5.8 Subsequently it carne to my notice through media repons and from papers suppüed
by Mr. Dick Roche TD that both consultants may have previously carried out work
on behalf of Roadstone.

6 Sale Process

6.1 Following the valuation repon, in April 1990, Kieran O'Malley & Co. Ltd. suggested
that the Department of Energy would be best advised in the first instance to invite
offers by tender for the sale of the property. On 10 May 1990 officials of the
Department at the request of Roadstone met with the company's Managing Director
and Production Manager. The Department officials stated that the property would be
sold probably by pubhc tender but that the method of sale was still subject to a
number of considerations. They also stated that there was much interest in the
property and the Depanment wculd not rule out an offer by Roadstone or anyone
else without prejudice to its right to sell the property by public tender.

6.2 On 1 August 1990 a further meeting was held with Roadstone, at their request, and
they sought clarification of certain matters relating to the sale, Í.e. the exact area for
sale, valué of trees on site, planning permission, tree felling licence.

6.3 The Department again met Roadstone on 26 September 1990 who made a firm offer
of £1.1 million for the property, £0.4 million of which would be paid when planning
permission was secured. This offer was confirmed in writing on 4 October 1990.

6.4 The Department met with Kieran O'Malley & Co Ltd. on 18 October 1990 to discuss
the Roadstone offer and was advised that it would be most unlikely that any other
party would be able to match that offer and strongly recommended that the sale to
Roadstone be pursued.

6.5 On 14 November 1990 the Minister approved the Department's recommendation that
the Roadstone offer be pursued with a view to increasing their bid to £1.25 million
without planning permission for sand and gravel extraction. Roadstone concluded ¡ts
negotiations with the Department at a meeting on 5 December 1990 with an increased

5
 Sale of State Lands at Glen Ding, Co. Wicklow

offer of £1.25 million, subject to the approval of the main board of Cement
Roadstone Holdings (CRH). At the meeting Roadstone were informed that their
offer would be recommended to the Minister for acceptance and would require the
approval of the Minister and the Minister for Finance. The papers were submitted
to the Secretary on 5 Deceraber 1990 who recommended to the Minister that the
increased offer of £1.25 million be accepted. The Minister approved the sale on 11
December 1990. On 18 December 1990 the Department received confirmation that
approval of the increased offer had been granted by the main board of CRH.

6.6 While negotiations on the sale to Roadstone were in progress, a second company,
Johnston Industries, sought to purchase the property also. The history of this
company's interest in the property is set out in Appendix B. At a meeting with the
Department on 13 December 1990 Mr. Brendan Johnston submitted two written
offers, dated 10 December 1990, together with a deposit of £80,000:

• £800,000 without conditions

• £715,000 with a further £435,005 payable when planning permission is

secured.

At the meeting Mr. Johnston indicated that he was making his best offers and that if
his was not the highest offer he would wish the Minister luck in selling to another
party. The Department officials undertook to put the offers before the Minister. The
papers indícate that on 14 December 1990 the Minister noted the offers and the
recommendation that they be rejected as the revised Roadstone offer was signifkantly
higher. On the same date Department of Finance sanction was requested for the sale
to Roadstone.

6.7 On 17 December 1990, a letter from Mr Johnston's solicitor included a presumption

that he was the highest bidder. A reply of 17 December, faxed on that day, denied the
presumption and stated that the Minister was considering the offers. On 19
December 1990 a further submission was made to the Minister outlining the details
of both offers with a recommendation that the Roadstone offer be accepted. The
submission also stated that on the telephone to the sénior Departmental negotiator
on 14 December 1990 Mr. Johnston did not change his position (offer) even though
it was left open to him to do so and said that ' ifhis offer was not the best he would
accept that position'.

6.8 On 20 December 1990

• The Minister approved the recommendation to sell to Roadstone

• Oral Department of Finance sanction was obtained for the sale (confirmed in

6
 Sale of State Lands at Glen Ding, Co. Wicklow

writing on 2 January 1991)

• Roadstone were informed in writing that their offer was accepted and

• MacGreevys, solicitors, were informed in writing that their client, Brendan

Johnston's unconditional offer had been considered and was not successful.

6.9 On 18 June 1991 a deposit of £62,500 was paid and the sale was finally closed on 23
December 1991 when the balance was paid. The price included an amount of
£250,000 in respect of the commercial timber growing on the lands.

6.10 As part of the sale a General Felling Licence, valid for five years, was granted to
Roadstone on 3 January 1992 allowing them to clearfell approximately 28 hectares of
afforested land and to thin a further 28 hectares at Deerpark, Blessington.

7 Disposal Proccss

7.1 During the course of the disposal process offers are described as being 'condúionaT or
'unconditionaT. It is my understanding from my examination of the papers that in the
context of this sale these terms mean:

• Conditional - that the offer is made subject to planning permission being

secured for the extraction of sand and gravel from the site

• Unconditional - that the offer is not dependent on such planning permission

being secured but subject to other conditions of sale including the granting of
a tree felling licence.

7.2 Guidelines issued by the Department of Finance for awarding contracts state that:

"The disposal or letting of property should be dealt with by competitive tendering

or by auction. This approach provides a mechanism wbich is both transparent and
is likely to achieve a fair price.'

The guidelines provide that departures from this general principie must receive prior
approval from the Department of Finance.

7.3 Since the process of selling the Glen Ding property commenced the Department
stated on numerous occasions that sale of the property would be by public tender. In
fact in reply to a Parliamentary Question on 20 October 1988 the Minister for Energy
stated that it was the intention that when the sandpit in question was offered for sale,
tenders would be invited by public tender competition which would be advertised in
the National Press.

7
 Sale of State Lands at Glen Ding, Co. Wicklow

7.4 The papers examined indícate that the reasons for the abandonment of this stated
policy, by the Department, in favour of the chosen sale method were:

• The Department believed that the final offer of £1.25m represented a very
satisfactory outcome

• The Department also believed that it would be unlikely that any other
potential buyer would either match or exceed that offer considering the
planning difficulties to be faced

• Strategic advantages would favour Roadstone as an adjoining property owner

• Concern that if the property was put on the market for public sale without
planning permission, not only might it draw many objections from interested
parties but would most likely damage the prospects of reaching the price on
offer from Roadstone

• Roadstone had special advantages as far as obtaining planning permission was

concerned in that they had a similar quarrying operation in an adjoining área

• The alternative of offering the property for sale by restricted tender to

selected promoters was not considered as if it failed to produce a better offer
it would effectively strengthen Roadstone's bargaining position.

8 Conclusions

8.1 The papers reviewed during the course of the examination indícate that the civil
servants involved in the sale process made judgments on the basis of the information
and advice available at the time and that Ministers acted at all times in accordance
with Departmental advice.

8.2 From a purely business point of view the Department could be considered to have
acted in a way that ensured that it obtained a good price for the property, viz.

• The Department tried to obtain planning permission to maximise the valué

of the land. When it was professionally advised that getting such permission
wouíd be diffícult the Department prudently insisted that the land be sold
without any conditions relating to planning permission. The wisdom of that
decisión has been borne out by An Bord Pleanála's refusal in September 1998
of the purchaser's planning application to extract sand and gravel from the
property.

• The Department regarded Roadstone as the prime potential purchaser as they

8
 Sale of State Lands at Glen Ding, Co. Wicklow

were a well established large company who

• needed the property to facilítate ongoing operations in the area

• had best access to the property

and conducted negotiations with the company until it got an offer which was
acceptable from the Department's and its adviser's point of view.

8.3 The Department had a duty to act in an equitable manner even though it is unlikely
that the Roadstone offer would have been bettered. The attraction of concluding the
sale at what was considered a good price outweighed the imperative to act
evenhandedly which is a basic principie when the State is doing business. In this
regard, in my opinion, the Department did not conduct the sale in an appropriate
manner. Specifically

• Bearing in mind the known marketability of the property it was incumbent

on the Department to ensure that all those who had expressed an interest
should have been afforded the opportunity of making an offer regardless of
the way the sale was handled, e.g. open public tenders, auction or prívate
treaty.

• At a minimum it should have been obvious that adjoining landowners in the

sand and gravel business would have been potential purchasers.

8.4 Mr. Johnston's bid for the property was considered before the sale to Roadstone was
formally concluded and was not successful because it was lower than Roadstone's
offer. Even though Mr. Johnston indicated that his offer was his 'best shot' it must
be seen in the context of

• the series of meetings and correspondence with Roadstone which

allowed that firm to vary its offers progressively

• the fact that, to all intents and purposes, the sale had been agreed
with Roadstone (subject only to CRH main board approval) and
approved by the Minister on 11 December 1990, two days before the
meeting with Mr Johnston at which he tabled his offers.

8.5 Considering the size of the property and the sand and gravel reserves it would have
been prudent for the Department to have obtained a second opinion oí to have
sought advice from the Valuation Office in regard to the valué of the property.

9
 Sale of State Lands at Glen Ding, Co. Wicklow

8.6 The Department might also have considered appointing selling agents, estáte agents
or auctioneers to handle the sale of the property in order to use their expertise to
maximise the return from the sale.

8.7 In the case of the appointment of consultants there is no evidence that other
consultancy firms were considered. There is also no evidence that any possible
question of potential conflicts of interest was considered at the time the consultants
were appointed.

9 Accounting Officer's Comments

9.1 The Department acted at all times in the best commercial interests of the State.

9.2 It was not accepted that the Department was under any commercial or other
obligation whatsoever to ensure that all those who had expressed an interest in the
property should have been afforded the opportunity of making an offer regardless of
the way the sale was handled. This was a judgment cali made by the negotiating team
having regard to the objective to maximise the valué of the sale for the taxpayer, their
knowledge of the potential bidders and the risks that the prospects of a favourable
price and a secure sale might have been jeopardised. In any event, the Roadstone offer
was more than 50% above the only alternative offer received. It was not accepted,
therefore, that the Department did not conduct the sale in an appropriate manner.
While it is accepted that the State in business transactions should as a basic principie
aim to give all parties equal standing ín the process, there is no absolute rule or
imperative in this regard and the imposition of such a rule could in exceptional cases
run contrary to the best commercial interests of the State and impose on the State
requirements which do not apply in the private sector.

9.3 As regards the exchanges with Mr Johnston, he was afforded every opportunity to
make his best offer and was left in no doubt that it was the 'end game'.

9.4 The Department's negotiating team was of the highest calibre and had wide
experience in commercial matters. The Department secured professional advice from
the GSI as well as from consultants of the highest standing and with recognised
strengths in planning matters and the valuation of sand and gravel reserves. With this
experience and professional advice, there was no need to appoint a sales intermediary
or to seek a second opinion on valuation.

9.5 As regards conflicts of interest, it should be borne in mind that specialist consultancy
firms supply their services to a wide range of clients on different issues at different
times and rely for their professional standing on their ability to supply those services
on an arm's length basis, notwithstanding the fact that they may have done business
previously, or would expect to do business again in the future, with one or other or

10
 Sale ofState Lands at Glen Ding, Co. Wicklow
both of the parties to a particular business deal.

9.6 It was unlikely that the Roadstone offer would have been bettered. In retrospect the
deal had proved to be exceptional given the long delays and ultimate failure of the
purchaser to obtain planning permission.

9.7 Legal proceedings had been initiated by Hudson Bros. Ltd. on 10 November 1998 and
that it was the Department's intention to defend the State's interests in a vigorous
fashion.

11
Appendices
 Appendix A

Sale of Glen Ding Property

Chronology of Events Leading to Sale

1. 23 July 1987 Representations by the late Sean Walsh TD on behalf of Hudson

Bros. Ltd. Expressing their interest in sand and gravel deposits in
the Blessington area.

2. 30 July 1987 Government decisión to sell State properties

3. 28 Aug. 1987 Request by Roadstone Ltd. to purchase Glen Ding

4. 2 Sept. 1987 Acknowledgement of receipt of Roadstone Letter

5. 8 Oct. 1987 Minister's reply to Sean "Walsh stating that the sand and gravel
deposits are not available for lease or sale and that if they were
available they could only be offered for sale by public tender
competition

6. 2 Nov. 1987 Enquiry from Roadstone whether Department have concluded

on availability of Glen Ding lands for purchase or lease

7. Undated letter from M. Kavanagh offering £50,000 for five acres

8. 6 Jan. 1988 Acknowledgement of receipt of Kavanagh letter

9. 24 Feb. 1988 Letter from Treacy Enterprises Dundrum Ltd. to Chris Flood
TD thanking him for arranging meeting of representatives of the
company and M. Kavanagh with Minister of State to discuss
proposal for quarry operaúon in Blessington area

10. 19 April 1988 Appointment of GSI to establish the extent, quality and valué of
sand and gravel deposits

11. 22 June 1988 Exploratory meeting between Department and officials of

Wicklow County Council and of the Department of the
Environment re possibility of planning permission for sand and
gravel extraction

12. 28 June 1988 Request to OPW for an opinion on the importance of two
archaeological sites on the property

A.1
 Appendix A

13. 21 July 1988 OPW reply ¡dentifying one oí the sites as an important Ring Fort
and confinning that the other is not of archaeological importance

14. 29 Aug. 1988 File note by Assistant Secretary mentioning appointment of

consultant as advised by Wicklow CC to assist in obtaining
outline planning permission

15. 4 Oct 1988 Note of discussion with Department of Finance official re

appointment of consultant

16. 5 Oct. 1988 Initial meeting with Kiaran O'Malley, planning consultant

17. 20 Oct. 1988 Minister's reply to PQ statingthat sale would be by public tender

18. 19 Dec. 1988 Consultants proposal and costings

19. 14 Mar. 1989 Request from Roadstone to be informed of Department's current

proposals for Glen Ding property

20. 10 April 1989 Letter from Johnston Industries expressing general interest in

acquiring sand and gravel deposits

21.19 April 1989 Request for Dept. of Finance sanction for engaging of consultant

22. 16 May 1989 Dept. of Finance sanction for employment of O'Malley,

consultants

23. 6 June 1989 Letter from Roadstone to Coillte Teo. re availability of lands at
Deerpark for purchase. Reply issued on 7 June indicating it was
a matter for the Forest Service

24. 12 June 1989 Letter from Roadstone enquiring if property or part of it will be
put on the market in the next five years

25. 12 June 1989 Letter to Roadstone that it is intended to sell the property in the

next few years by public tender

26. 16 June 1989 Letter appointing O'Malley as consultants

27. 8 Sept. 1989 Letter from O'Malley re planning difficulties

28. 19 Sept. 1989 Letter from O'Malley re requirement for an Environmental

A.2
 Appendix A

Impact Study

29. 7 Dec. 1989 Letter from Johnston expressing continued interest in lands
bearing sand and gravel deposits under the Department's control
and specifically in operating the Blessington property on a
consortium basis with the Department

30. 13 Dec 1990 Note on letter of Department official telling Mr Johnston that
the property would be sold by public tender and that he would
be informed when tenders were being invited.

31. 12 Jan 1990 Further enquiry from Roadstone re sale of property in 1990 and
stating that the company wishes to make an offer if it comes on
the market

32. 16 Feb. 1990 Reply to Roadstone stating that every effort is being made to put
the property on the market this year (1990)

33. 5 Mar. 1990 File note of telephone enquiry from Roadstone re rumour that
Department had secured planning permission for the property.
Note states that enquirer was informed that the Department had
not got planning permission

34. 25 April 1990 Valuation by John Barnett Ltd. (assisting O'Malley) of sand and
gravel deposits - Valuation £1.26m

35 30 April 1990 Letter from O'Malley re planning situation

36. 10 May 1990 Meeting with Roadstone re sale - informed that sale would
probably be by public tender but that the method of sale was still
subject to a number of considerations

37. 22 May 1990 Letter from Johnston expressing continued interest in making an
offer for the property or a joint venture with the Department to
develop the site

38. 29 May 1990 Reply to Mr. Johnston noting his interest andinvitinghimto cali
to the Department to set out in more detail his plans for the
property

39. 5 - 6 June 1990 File note stating that map showing approximate area to be
disposed of was sent to Mr. Johnston on 5 June and also to
Roadstone on 6 June 1990

A.3
 Appendix A

40. 20 July 1990 Meeting with Mr. Johnston who was invited to submit an offer
for the property. Mr. Johnston requested information on any
bore hole and site investigation information which the
Department might have an also a statement of the total area for
sale. Mr. Johnston was informed that OPW would be getting a
portion of the property around the ring fort. When the
Department knew the exact area he would be informed and be
provided with any other information which the Department was
in a position to give

41. 1 Aug. 1990 Meeting with Roadstone to discuss sale and related matters, i.e.
area, valué of trees, planning permission and felling licences

42. 23 Aug. 1990 Letter to Roadstone setting out basis for valuation of timber on
property

43. 5 Sept. 1990 Foliow up letter to meeting of 20 July with Mr. Johnston
informing him of the net area to be disposed of and a copy of a
map outlining the area to be retained by OPW

44. 7 Sept. 1990 Memo from Assistant Principal, Forest Service stating that
transfer of land to OPW would be finalised when sale was
concluded, that the valué of the timber which was not to be
notified to Roadstone was approximately £340,000. The memo
also states that Roadstone are expected to make further contact
shortly. They had been given the impression of other serious
interest. The memo states that 'in fací there was other interest but
ofdoubtful valué'

45. 26 Sept. 1990 Meeting with Roadstone who made an offer for the property,
£0.7m when property was handed over and a further £0.4m when
planning permission was secured.

46. 4 Oct. 1990 Offer confirmed in writing

47. 18 Oct. 1990 Meeting with O'Malley, consultants, to discuss Roadstone offer.
It was agreed that Roadstone should be supplied with a figure of
£1.5m for the property with the view that they would increase
their offer to £1.25m without any planning component

48. 26 Oct 1990 Submission to Minister stated that, while some general interest
had been expressed, only Roadstone had made a meaningful
approach. Alternative of offering the property for sale to selected

A.4
 AppendixA

promoters was considered but, if this failed to produce a better

offer, as the Department believed it would, this would effectively
strengthen Roadstone's hand. Approval of the Minister to
negotiate with Roadstone on the basis discussed on 18 October
was sought.

49. 2 Nov. 1990 Letter from Mr. Johnston stating that he was prepared to inake
an unconditional bid for the property without the benefit of a
planning consent. He requested bore hole information and the
quantities of material contained in the property. Note on letter
by Department offlcial states that Mr. Johnston was informed by
telephone on 2 Nov. 1990 that the only information he could be
given was that the reserve contained a net deposit of 7 to 8
million tonnes approximately

50. 5 Nov. 1990 Letter from Mr. Johnston requesting a complete ordnance survey
plan of the site and states that the site plan which he has received
shows only the land in the ownership of the Department which
is not included in the sale. Note on letter states that Department
despatched map on 6 November.

51. 14 Nov. 1990 Approval by Minister to pursue sale to Roadstone on the basis of
submission dated 26 October.

52. 15 Nov. 1990 Letter from Mr. Johnston again requesting property information
and seeking to make an appointment to view the property.

53. 16 Nov. 1990 File note states that in his absence Mr. Johnston's secretary was
informed by telephone that he could not be given an internal
confidential report (presumably, GSI Report)

54. 20 Nov. 1990 File note states that Mr. Johnston was telephoned to confirm
appointment to view site. His sister said that he was not available
as he was in hospital for a few days. She was requested to ask Mr.
Johnston when available to contact the Department to make a
further appointment

55. 23 Nov. 1990 Meeting with Roadstone. They were informed that their offer
while good did not reflect the real valué of the property.
Roadstone informed that the Department required£1.5m for the
reserve with no involvement in the planning application.
Roadstone asked for details of timber volumes and stand maps
and hoped to arrange a further meeting upon receipt of this

A. 5
 Appendix A

information

56. 27 Nov. 1990 Copy of stand map and inventory of timber sent to Roadstone

57. 28 Nov. 1990 Letter from Mr. Johnston requesting appointment to view the
site and seeking information in regard to commoners rights,
bridal pathways, ancient monuments, rights of way, preservation
orders and past planning applications. File notes that
appointment was made for 5 December at 10 am.

58. 29 Nov. 1990 Letter to Mr. Johnston confirming appointment and stating that
the land for sale is not subject to commoner's rights, bridal
pathways, ancient monuments,rightsof way, preservation orders
and that no planning permission has been sought for the area for
sale

59. 30 Nov. 1990 Letter from Johnston Industries accepting appointment and
requesting information on classification and grading of forestry
and agricultural land contained in the site. File notes that Dept.
Of Agriculture was contacted and that they stated that there was
no grading system for land

60. 30 Nov. 1990 Reply to Mr, Johnston indicating that Department would
facilitate him in any independent evaluation of potential sand and
gravel he might wish to undertake.

61. 5 Dec. 1990 Meeting with Roadstone and revised offer of £1.25m submitted.

Department agreed to submit it to Minister for approval.

62. 7 Dec. 1990 Offer in writing from Roadstone

63. 11 Dec. 1990 Approval by Minister of Roadstone's offer

64. 12 Dec. 1990 Letter from MacGreevys, sohcitors for Mr. Johnston protesting
at cancellation by Department of meeting on 13 December due
to decisión by Minister to sell to land to a third party

65. 12 Dec. 1990 File note of telephone cali by Mr. Johnston to Minister's office
protesting at sale to another party when he had arranged a
meeting for 13 December to formally table his offer

66. 13 Dec. 1990 Letter from Mr. Johnston to Minister seeking to furnish his offer
directly to him given that he (Mr. Johnston) is'unable to rely on

A.6
 Appendix A

your staff at Leeson Lañe'

67. 13 Dec. 1990 Meeting between Department officials and Brendan Johnston
who submits two written offers. Mr Johnston sald he was making
his best offers (his best shot) and that if his was not the highest
offer he would wish the Minister well in selling to another party.
Officials agree to put the offers before the Minister for decisión.

68. 14 Dec. 1990 Letter from Department to MacGreevys acknowledging receipt

of their letter of 12 December and pointing out that the
Department had since met with Mr. Johnston and received his
offers

69. 14 Dec. 1990 Johnston offers noted by Minister. Submission to Minister stated
that Johnston offer fell "far short of Roadstone offer".

70. 14 Dec. 1990 Request for Dept. of Finance sanction

71.17 Dec. 1990 Letter from MacGreevys expressing Mr. Johnstons appreciation
for meeting of 13 December and presumption that he was the
highest bidder for the property

72. 17 Dec. 1990 Letter to MacGreevys denying Mr. Johnston's presumptions and
stating that the Minister is considering his offer

73. 18 Dec. 1990 Roadstone's offer confirmed in writing and declared

unconditional as main CRH board had approved it

74. 20 Dec. 1990 The Minister, having considered both offers, approves Roadstone
offer on recommendation of Department. Submission indicated
that in phone conversation on 14 December Mr Johnston did not
change his position re his best offers even though it was left open
to him to do so.

75. 20 Dec. 1990 Oral sanction for sale received from Department of Finance

76. 20 Dec. 1990 Letter to Roadstone formally accepting offer

77. 20 Dec. 1990 Letter to solicitors representing Johnston informing them of

rejection of offer

78. 21 Dec. 1990 Detailed letter from MacGreevys seeking a full explanation of the
events of the sale

A.7
 Appendix A
79. 2 Jan. 1991 Dept. of Finance written sanction for sale

80. 7 Jan. 1991 Draft reply by Chief State Solicitor to MacGreevys letter of 21

December 1990

81. 8 Jan. 1991 Note for information of Minister on letter of 21 December 1990

82. 9 Jan. 1991 Minister agrees draft letter by Chief State Solicitor to Mr.
Johnston

A.8
 Appendix B

History of Johnston Industries Interest in Property

Mr. Brendan Johnston, the proprietor of Johnston Industries, had been in

correspondence with the Department since April 1989. Initially, the company's
interest was in purchasing, leasing or joint venture in regard to any sand, gravel or
limestone bearing lands under the control of the Department. The history of Mr.
Johnston's specific interest in the Glen Ding is summarised as follows:

10 Apr. 1989 Letter from Johnston Industries expressing general interest in

acquiring sand and gravel deposits under the control of the
Department

7 Dec. 1989 Letter from Johnston Industries expressing continued interest in lands
bearing sand and gravel deposits under the Department's control and
specifically in operating the Blessington property on a consortium
basis with the Department.

13 Dec. 1989 File note stating that Department official rang Mr. Johnston
informing him that the property would be sold by public tender and
promising to advise him when tenders are being invited.

22 May 1990 Letter expressing continued interest in land at Glen Ding

29 May 1990 Letter to Mr. Johnston inviting him to discuss his plans for the
property

20 July 1990 Meeting with Department Officials. Mr. Johnston stated that he had
walked the site and would only be interested in acquiring it if it had
full planning permission. Mr. Johnston was informed that the
Department proposed to sell the site lock, stock and barrel and would
like him to submit an offer on that basis. He was also informed that
there were others interested in the property which might still be
offered for sale by public tender.

5 Sept. 1990 Follow up letter to meeting of 20 July informing Mr. Johnston of the
net area to be disposed of and enclosing a map of the area to be
retained by OPW

2 Nov. 1990 Letter from Mr Johnston stating that he was prepared to make an
unconditional bid for the property without the benefit of a planning

B.1
 ______ AppendixB
consent. He requested borehole information and the quantities of
material contained in the property. Note on letter by Department
official states that Mr Johnston was informed by phone on 2
November 1990 that the only information he could be given was that
the reserve contained a net deposit of 7-8 million tonnes approx.

5 Nov. 1990 Letter from Mr. Johnston requesting a complete ordnance survey
plan of the site and stating that the site plan which he has received
shows only the land in the ownership of the Department which is
not included in the sale. Note on letter states that Department
despatched map on 6 November

15 Nov. 1990 Letter seeking inspection of site with Department staff and requesting
information relating to the property

16 Nov. 1990 File note stating that in his absence Mr. Johnston's secretary was
informed by telephone that he could not be given an internal
confidential report (GSI Report)

20 Nov. 1990 File note stating that Mr. Johnston was telephoned to confirm
appointment to view site. His sister said that he was not available as
he was in hospital for a few days. She was requested to ask Mr.
Johnston, when available, to contact the Department to make a
further appointment

28 Nov. 1990 Letter from Mr. Johnston requesting appointment to view the
property and requesting information on commoners rights, bridal
pathways, ancient monuments, rights of way, preservation orders and
past planning applications.

29 Nov. 1990 Letter to Mr. Johnston confirming appointment for 5 December 1990
and stating that the land for sale is not subject to commoners rights,
bridal pathways, ancient monuments, rights of way, preservation
orders and that no planning permission has been sought for the area
for sale

30 Nov. 1990 Letter from Mr. Johnston confirming appointment and requesting
further general information on site.

30 Nov. 1990 Reply by Department to Mr Johnston, indicating that Department

would facilitate Mr Johnston in any independent evaluation of
potential sand and gravel he might with to undertake.

B.2
 Appendix B

12 Dec. 1990 Letter from MacGreevys, solicitors, representing Johnston andphone

cali to Ministers Office protesting at Ministers decisión to sell to a
third party.

12 Dec. 1990 File note of telephone cali by Mr. Johnston to Minister's office
protesting at decisión by Minister to sell to another party when he
had arranged a meeting for 13 December to formally table his offer

13 Dec. 1990 Letter to Minister seeking to furnish offer directly to him because of
difficulties in dealing with Department

13 Dec. 1990 Mr. Johnston presents two written offers together with deposit to
Department officials at meeting. Mr Johnston said he was making he
best offers (his best shot) and that if this was not the highest offer he
would wish the minister well in selling to another party.

14 Dec. 1990 Johnston offers noted by Minister. Submission to Minister stated

that Johnston offer fell "far short of Roadstone offer".

14 Dec. 1990 Department reply to MacGreevy's letter of 12 Dec. 1990

14 Dec. 1990 In phone conversation with sénior negotiator Mr Johnston did not
change his position re his best offers even though it was left open to
him to do so.

17 Dec. 1990 Letter from MacGreevys to Minister expressing gratitude for meeting
of 13 Dec. 1990 and presumíng that Mr. Johnston was the highest
bidder

17 Dec. 1990 Letter to MacGreevys denying Mr. Johnston's presumptions and

stating that the Minister is considering his offers

20 Dec. 1990 Letter to MacGreevys informing them that offer was unsuccessful

21 Dec. 1990 Letter of protest from MacGreevys

7Jan. 1991 Draft reply by Chief State Solicitor to MacGreevys letter of 21

December 1990

8 Jan. 1991 Note for information of Minister on letter of 21 December 1990

9 Jan. 1991 Minister agrees draft letter by Chief State Solicitor

B.3