This article is from page 15 of the 2005-11-22 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 15 JPG
A MASSIVE €33 million shortfall in the Shannon Development pension fund will have to be met by the taxpayer.
Accounts recently filed with the Com- panies Office also show that the company would have made a much greater loss last year than the €1.6 million recorded, but for a €12.518 million profit made in selling off property. This included €4.2 million on the sale of Shannon town to Clare County Council.
The pensions deficit increased by €6.9 million during 2004. However, the accounts state that the exchequer will meet any short- fall, as a result of a High Court settlement between the Trustees of the pension fund, and the company and Department of Fi- nance last year.
The company’s pension fund stood at €46.5 million at the end of last year. But the anticipated cost of the fund — which gives each employee a guaranteed amount at the end of their working lives – is €80 million, resulting in the shortfall.
The company has declined in the past to give a breakdown of the numbers working in each department.
However, accounts show that the high- est number (75) work in industrial devel- opment, and these are the jobs threatened through the new mandate for the company announced by the Minister for Trade, Em- ployment and Enterprise, Michael Martin ETS aves
This is currently the subject of negotia- tions between SIPTU and the Dept of En- terprise, Trade and Employment, where SY UE ORS ee lacoseel olan stam comm ClUs nome soMBADIRUD KS of Shannon Development in promoting the Shannon Free Zone.
Staff costs, including salaries and pension provision, cost €14.535 million in 2004.
In a bid to reduce staff numbers, Shannon Development has had in place a voluntary retirement scheme costing €2.24 million over the past two years.
In relation to the transfer of Shannon town to Clare County Council, the company spent €690,000 on redundancy and €922,000 on other costs. And it cost €104,000 to remu- nerate its Board of Directors last year.
Underlining the importance of the com- pany’s property portfolio, the accounts show that €17.913 million was generated in rental income last year.
The company’s balance sheet shows that its fixed assets were valued at €150 million at the end of last year.