Businesses making millions from direct provision as State pays €1.26bn to run centres
Scale of spend on system to house asylum seekers laid bare
BUSINESSES have been paid more than €1.26bn to run accommodation centres in the direct provision system.
Data obtained by the Irish Independent details the huge sums earned by some companies and individuals since its inception two decades ago.
Originally brought in as a short-term measure after a sharp increase in asylum applications around the turn of the century, direct provision quickly became a permanent fixture in the State’s response.
The system, which the Oireachtas Justice Committee says needs to be replaced or substantially overhauled, has created a thriving industry.
There are 39 accommodation centres nationwide, catering for 6,000 people. Some 32 of these are privately owned.
Department of Justice data shows 179 companies, individuals or partnerships have been awarded contracts since 2000.
But the figures also indicate a small number of these entities have dominated the sector, with 24 companies paid €10m or more in that time.
Three firms have been paid in excess of €100m.
The highest earner, the company behind the former Mosney holiday centre, has received close to €157m.
Some €131m was paid to contractors last year.
While it is not always possible to determine the profits enjoyed by these businesses, company filings for some show generous remuneration packages enjoyed by directors.
Some companies, however, have changed their status to unlimited, which means they don’t have to publish accounts.
The ultimate ownership of a number of firms is also held by other companies offshore.
These business practices are entirely legal and legitimate.
Here, the Irish Independent looks at the biggest earners since direct provision was introduced 20 years ago.
Mosney Unlimited Company (€156.8m)
The former Mosney Holidays Plc was paid €10.8m last year for running an 800-capacity direct provision centre at the one-time Community Games venue in Co Meath.
The business is led by Co Louth businessman Phelim McCloskey (75), along with co-directors Paul McCloskey (45), Sarah Gates (42) and Ruth Kierans (38). Almost all of its shares are owned by Somming Unlimited, a company registered in the Isle of Man.
Mosney de-registered as a Plc in 2012 and became an unlimited company. The last set of accounts it was obliged to publish showed an operating profit of €385,000 in 2010.
The company then had five directors, the current directors and Phelim McCloskey’s wife Elizabeth, who got remuneration totalling €924,000 between them that year.
East Coast Catering (Ireland) Unlimited (€141m)
The company was paid €11m last year for running the Balseskin reception centre in Co Dublin and Carroll Village in Dundalk, Co Louth, which have capacities of 310 and 60 respectively.
Its directors are Dundalk businessmen Denis Williams (55) and Brian Byrne (73) and Canada-based father and son Patrick (77) and Matthew O’Callaghan (42).
Most of the shares in the company are owned by another firm in Canada, O’Callaghan Holdings Limited.
As an unlimited company since 2007, East Coast Catering does not have to file accounts. The last set filed showed after-tax profits of €1.3m for 2006.
Bridgestock (€122.1m)
The Roscommon-based business run by the Gillen family earned €7m last year.
Its centres include the 215-capacity Globe House in Sligo and the Old Convent in Ballyhaunis, Co Mayo, which is contracted to hold 267.
A number of similarly named companies are run by the Gillens, but Bridgestock Care Limited was the one paid for asylum services last year, according to the Department of Justice.
Its directors are Seamus (57) and Michael Gillen (60).
Accounts for 2018 list remuneration of €141,000 for directors and a €164,000 profit.
Companies co-owned by Alan Hyde (€110.2m)
Several companies involving businessman Alan Hyde (57), of Mount Oval in Cork, were paid €8.2m last year for operating centres with a combined capacity of 540. These were in Glounthane and Clonakilty in Co Cork, Wellington Road in Cork city, Foynes, Co Limerick and Ballytruckle in Waterford.
The firms included Stompool Investments Limited, owned by Mr Hyde and Yvonne Murphy (58), of Innishannon, Co Cork, which was paid €2.2m last year. According to accounts, directors Mr Hyde and Ms Murphy’s son Tadhg (29) received €213,000 in pay and pension contributions in 2018. Profits for the financial year amounted to €238,000.
Another firm, Bideau Limited, owned by Mr Hyde and Yvonne Murphy was paid €1.6m last year. Directors Mr Hyde and Tadhg Murphy shared pay and pension contributions of €344,000 in 2018.
Millstreet Equestrian Services Unlimited (€95.8m)
The company run by Noel C Duggan (87) and his son Thomas (53) was paid €11.6m last year to run accommodation centres in Millstreet and Mallow in Co Cork, Killarney and Kenmare in Co Kerry, Carrick-on-Suir, Co Tipperary, and in Waterford city.
Mr Duggan Snr rose to international prominence when his Green Glens Arena hosted the 1993 Eurovision Song Contest.
The company’s shares are held by Arbella Unlimited and Tolosa Limited, two firms registered in the Isle of Man, but Thomas Duggan is the ultimate controlling party.
Company filings showed a profit of just over €2m in 2018 and a cash pile of €8m.
The directors, Mr Duggan Snr and his son, were paid €65,000 between them that year. A €182,000 contribution was made to the pension scheme of one director.