The state lands . . . on a 25acre site at Ringsend, Dublin . . .have been at the centre of an ownership dispute between the Dublin Port authorities and a stock market company, South Wharf, since the glass bottle factory closed in 2002 with the loss of 360 jobs.

South Wharf sought to exploit a weakness in the Landlord and Tenants Act which allowed companies that sublet state-owned land to purchase them for a multiple of their annual rent. South Wharf argued that it was entitled to purchase the 300m Ringsend site for less than 1m.

The loophole was closed by emergency legislation last year after an IDA client company purchased state lands on Clonshaugh industrial estate on the cheap. However, the initial legislation did not cover port lands. Once alerted to the loophole, South Wharf lodged its ownership claim.

A legal battle was anticipated as Dublin Port contested South Wharf 's claim, but a deal was concluded last month.

South Wharf said it will receive two-thirds of the sale price with the remaining third going to Dublin Port. Shares in South Wharf have increased by 25% since the announcement.

Green Party TD John Gormley last night blamed the loss on government incompetence.

"This is another example where the taxpayer ends up footing the bill for private interests."