George Lawlor urges action on derelict state-owned insolvent sites
George Lawlor spoke in support of a motion recognising new types of insolvency proceedings and said the Labour Party would not oppose it. He used the contribution to press for domestic reform, citing a derelict, state-owned former holiday resort in Hookhead, County Wexford and the legal barriers that leave dissolved company property vested in the State.
He noted that Slovakia notified the Commission in July 2022 of recent changes to its domestic insolvency laws introducing a new preventive restructuring procedure and a new type of insolvency practitioner. He said similar notifications followed from Estonia, Spain, Malta and Italy in September 2022, from Belgium in July 2023 and from Luxembourg in January 2024, and that these new types of insolvency proceedings and insolvency practitioners comply with the requirements set out in Regulation EU 2015 848.
He outlined how a company may be dissolved either through liquidation or strike-off and that, under Section 28 of the State Property Act 1954, property held by a company at the time of its dissolution becomes state property in the name of the Minister for Public Expenditure, National Development Plan, Delivery and Reform unless it was held on trust. He quoted the minister's reply to his parliamentary question explaining that the OPW deals with legal-ownership issues, that the company in question was dissolved on 19 October 2007 and that a company can be restored up to 20 years after dissolution, with any ministerial interest defeasible by restoration; he also noted the Minister can waive interests under Section 31.
He described Hookless village in Hookhead, County Wexford, declared insolvent and liquidated in the 2000s, as a derelict and extremely dangerous eyesore. He said a once modern swimming pool, gym, bar and fully equipped restaurant now resembles a ghost town, surrounded by around 100 homes occupied by private owners and a number of Ukrainian families, and warned that many children and youngsters use the site as an 'adventure playground' despite attempts by Wexford County Council to secure it.
He argued that, while the Labour Party supports the motion before the House, the State must "get our house in order" on insolvent company lands and property in State ownership. He criticised the practical effect of waiting up to 20 years for restoration, asked how many other dissolved insolvent properties are held by the Minister for Public Expenditure and called for legislative change so these derelict sites can be dealt with in the common good.
Labour Party support and EU notifications
He noted that Slovakia notified the Commission in July 2022 of recent changes to its domestic insolvency laws introducing a new preventive restructuring procedure and a new type of insolvency practitioner. He said similar notifications followed from Estonia, Spain, Malta and Italy in September 2022, from Belgium in July 2023 and from Luxembourg in January 2024, and that these new types of insolvency proceedings and insolvency practitioners comply with the requirements set out in Regulation EU 2015 848.
State ownership under the State Property Act
He outlined how a company may be dissolved either through liquidation or strike-off and that, under Section 28 of the State Property Act 1954, property held by a company at the time of its dissolution becomes state property in the name of the Minister for Public Expenditure, National Development Plan, Delivery and Reform unless it was held on trust. He quoted the minister's reply to his parliamentary question explaining that the OPW deals with legal-ownership issues, that the company in question was dissolved on 19 October 2007 and that a company can be restored up to 20 years after dissolution, with any ministerial interest defeasible by restoration; he also noted the Minister can waive interests under Section 31.
Hookhead derelict resort and community risk
He described Hookless village in Hookhead, County Wexford, declared insolvent and liquidated in the 2000s, as a derelict and extremely dangerous eyesore. He said a once modern swimming pool, gym, bar and fully equipped restaurant now resembles a ghost town, surrounded by around 100 homes occupied by private owners and a number of Ukrainian families, and warned that many children and youngsters use the site as an 'adventure playground' despite attempts by Wexford County Council to secure it.
Demand for action on domestic insolvency estates
He argued that, while the Labour Party supports the motion before the House, the State must "get our house in order" on insolvent company lands and property in State ownership. He criticised the practical effect of waiting up to 20 years for restoration, asked how many other dissolved insolvent properties are held by the Minister for Public Expenditure and called for legislative change so these derelict sites can be dealt with in the common good.
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Transcript
Minister, the Labour Party has no difficulty with this motion and won't be opposing it. It is noted that in July 2022, Slovakia notified the Commission of recent changes to its domestic insolvency laws, introducing a new preventive restructuring procedure and a new type of insolvency practitioner. That notification was followed by notifications from Estonia, Spain, Malta and Italy in September 2022, from Belgium in July 23 and from Luxembourg in January 2024, all relating to recent changes to their domestic laws that introduce new types of insolvency proceedings or insolvency practitioners. These new types of insolvency proceedings and insolvency practitioners comply with the requirements set out in Regulation EU 2015 848. As I say, Minister, we in the Labour Party fully support this and have no difficulty with it, but I feel we must look at much of our own insolvency issues domestically too. A company may choose liquidation when it is insolvent and unable to meet its financial obligations. Liquidation allows for the orderly sale of assets to repay creditors. A company can be dissolved either through liquidation or through the strike-off process. Once a company has been dissolved, the assets of the dissolved company become state property. This is where I want to highlight the issue of hookless village in Hookhead in County Wexford, declared insolvent and subsequently liquidated in the 2000s. Since that time it has lain empty, a derelict and extremely dangerous eyesore. Today, a once modern swimming pool, gym, bar and fully equipped restaurant resembles something you'd find in a deserted ghost town. Around it sit around 100 homes, part of the original holiday resort. The homes are fully used by both private owners and a number of Ukrainian families, and many young children, many children and youngsters make up the community, and this dangerous eyesore forms the perfect adventure playground for them. And who is the owner of this dangerous property? We are. The State, or to be more precise, the Minister for Public Expenditure, National Development Plan, Delivery and Reform. In response to a PQ submitted by me in March of this year, the Minister replied, I am informed by the Commissioners of Public Works that Section 28 of the State Property Act 1954 provides that property held by a company at the time of its dissolution becomes state property in the name of the Minister for Public Expenditure, National Plan, Delivery and Reform, the Minister, unless it was held on trust for another. The OPW deals with legal-ownership issues arising on real property, land-stroke buildings, that devolves to the Minister under the Act. This provision mainly exists to ensure that land is not ownerless. The OPW or the Minister does not occupy or take control of what is a large volume of property that falls under this heading. The OPW cannot conclusively establish if property which was registered at the company referred to has vested in the Minister. The company has been dissolved since 19 October 2007 and can be restored to the company's register up to 20 years after that date. If restored, any property it held will revert to the company as if it had never been dissolved. Any interest that may currently be held by the Minister is defeasible by restoration. The Minister has limited powers under the Act but he can under Section 31 waive any interest he has to another, if appropriate, in all circumstances. The Minister has in the past waived his interest in properties to local authorities and the OPW on behalf of the Minister. He is always willing to engage with any local authority to try to resolve issues arising with property dissolved companies. In other words, after insolvency and dissolution, the State, despite having ownership of the property, which could have possibly been salvaged and someone make a decent go of it, is not letting it go until 20 years. We have to wait 20 years before we can do anything and even then we probably won't bother. Wexford County Council, in this case, has effectively shown no interest in this property despite the fact that they have spent quite a deal of money trying to secure it against the perils that the youngsters that are invading it are coming up against. This is quite simply crazy, Minister. How many more of these dissolved insolvent properties are lying around the country in the ownership of the Minister for Public Expenditure? We have effectively allowed them to become dangerous, derelict sites and eyesores for want of a piece of legislation for the common good. As I have said, Minister, we have no difficulty in supporting what is before us today but let us get our house in order when it comes to insolvent company lands and property in State ownership.