Dáil Éireann debate -
Tuesday, 1 Mar 1983

Vol. 340 No. 7

Adjournment Debate. - Development of Merchants Quay, Cork.

Mr. Lyons

I should like to give some of the time allotted to me to my colleague, Deputy Wallace, from the same constituency, to express his views on the matter. The withdrawal of the involvement of Power Securities in the development of Merchants Quay, Cork is a serious blow to a wonderful project that was well planned over a number of years. The development of office accommodation, shopping leisure facilities and a carpark complex was to be the biggest of its kind and at present-day values was estimated to cost £33 million. During its proposed construction over a three-year period it was estimated that 700 people would be directly employed and many more would be employed in the service industries. It was envisaged that when completed 2,000 jobs would be available.

Like many of the decisions taken by this Government so far as the Cork region is concerned, the decision not to go ahead with a commitment given by a Fianna Fáil Government to relocate An Foras Forbartha in 55,000 square feet of office and laboratory space was a severe disappointment. This project was first mooted in the 1960s when Clare Investments announced plans for a major development. Power Securities became joint developers and planning permission was granted in November 1981. It opened the way to what promised to be a huge centre city complex and the corporation's concern to get the project under way as soon as possible was expressed on many occasions. I lay the blame for the decision of Power Securities fairly and squarely on the Coalition Government. They have reneged on a firm commitment given by a Fianna Fáil Government to pre-let half of the office space for use by An Foras Forbartha. It was also to include the Department of Posts and Telegraphs and the Office of Public Works.

The question has already been raised as to what this Government intend to do in the Cork area. This is another glaring example of their gross neglect of Cork which has been highlighted on a number of occasions recently. One would imagine with the representation of the Coalition parties in the Cork city and county area — they have 12 seats out of 20 — that more would be done for the county. It appears their attitude is to let things slide because they have such a large number of seats. Are the voices of our colleagues in Fine Gael and Labour being heard by this Government? Have they any influence on the decisions being made regarding the Cork area?

It is obvious with each passing day and week that this Government are determined to downgrade the Cork area, to do as much harm to it as they can, either by their own actions or in collusion with some of the semi-State bodies. Let us take the example of B & I. Now we have no sea link with Britain, as we pointed out last week. Trade, commerce, tourism and industrial development in the area have been thrown to the wind by this Government. We were fortunate to get a warning from a source outside this country that another semi-State body was attempting to downgrade Cork in the matter of Cork Airport and the schedule of flights by Aer Lingus out of Cork to Europe and to Britain. The treatment being meted out to this area by the Government is becoming unbearable. People are becoming infuriated by the actions of the Government. I call on the Government now to stand by the commitment given by Fianna Fáil and to give some priority to the Cork area in the matter of employment, particularly in the construction industry.

Everyone knows that unemployment is rising so rapidly that the numbers are barely off the press when they have to be readjusted upwards. In common with the rest of the country Cork is suffering also. To add insult to injury, the Government parties have 12 Deputies out of 20 in the Cork area who are allowing this state of affairs to continue. For £1 million progress was stopped on the deep water berth at Ringaskiddy. That would have given employment to 200 people and there would have been more jobs in the service industries. The construction industry is one of the most labour-intensive industries. We have natural resources in our quarries and in our gravel and sand pits and many firms were organised to prepare and supply the basic requirements for development work in the construction industry. With regard to the gas pipeline, a Cork firm prepared the pipeline and carried out certain treatment works. I have learned that similar work in preparation for natural gas in Dublin will be done by a firm from outside the country. I should like the Minister to investigate this matter. This is something I heard but I have not got authentic confirmation of it.

In the budget the Government deferred the expenditure of £120 million estimated for projects in the economic and productive infrastructural categories. What about the proposed enlarged carriageway along Merchants Quay, which is now a restricted three-lane carriageway? Would some of the £120 million have been spent on that? Why has the IDA's allocation been cut by £6 million? Why was the decentralisation programme cancelled to save £5 million? Will they continuously add to the 10,000 people unemployed in the Cork area?

If the Minister of State, for political reasons, does not wish to have An Foras Forbartha in Cork, will he and the Minister endeavour to secure some alternative so that the complex can proceed and give badly-needed employment in the Cork area? I should like the Minister to tell me why this development was scuttled. Will he assure me that every effort will be made to ensure the successful completion of this complex?

I have already outlined the many projects and decisions taken by the Government which downgraded and set aside the Cork area. What spite, if that is the correct word, have the Government against the Cork area? After the debate last week on the B & I and our raising of this matter tonight, for which I thank the Ceann Comhairle, I hope it will be brought home to the Government that the 12 seats they hold out of the 20 in the Cork area are on a sandy foundation and will continue to be if they carry on with this charade. The Government may think it does not matter because they will not be looking for votes for four or five years, but if they continue the way they are going it will be months rather than years.

I should like to give some of my time to my colleague, Deputy Wallace. The Minister should make every effort to find some alternative to An Foras Forbartha so that the complex can go ahead. The relocation of An Foras Forbartha in Cork was the reason Power Securities pulled out.

Mr. Wallace

This is my first contribution to the House, but it is a sad occasion as I think of the treatment which my constituency, city and county, have received from this Government. The decision by Power Securities to pull out of the investment at Merchants Quay is a major disaster for Cork and the county in so far as the confidence of investors is at a low ebb. The previous Government took decisions and made commitments about this development. The present Government have reversed a very important decision which had been made in this area. An Foras Forbartha are not coming to Cork. This decision was taken by them because they did not want to go to Cork. Who is running the country and making the decisions?

On national average we have the highest unemployment rate in Cork. I do not know if the Minister is aware of that. The construction industry in Cork has been the worst hit industry in the country. Are the Government aware of that? What was taken into consideration when this decision was made? Was it because it was located in a certain Minister's constituency and it did not suit him that it should be transferred to Cork? Do they realise the setback that has been created by this small-minded decision? The seriousness of it has not been brought home to the Minister or his colleagues. We had the case of the B & I, East Cork Foods, Aer Lingus and now Power Securities. As regards the B & I, the Minister tried to get an alternative route out of Cork. East Cork Foods closed down and another Minister is trying to start up something to keep them going. The Aer Lingus operation is being run down in Cork. When we have industries and services why not pay attention to them instead of seeking alternatives when they get into difficulty?

Decentralisation should be given priority by the Government. Dublin cannot accommodate its large population. An Foras Forbartha did not want to move to Cork. I do not understand why. They were supposed to go to Fota but they got out of that. When will the Government face up to their responsibilities and take decisions in the national interest rather than in the local interest?

The trade unions in Cork have expressed dismay at the Government's decision. Did they look at the advantages to Cork and the surrounding areas? We hear much talk about employment. Here was an opportunity to do something about that in the Cork area but the Government made a major blunder and allowed people to dictate to them. If gardaí or members of the Defence Forces are transferred they have no say in the matter. They just go.

The Government should govern on behalf of the people and face up to the issues. They should face up to the issues because they have made a major blunder here on behalf of Cork. I appeal to the Minister before it is too late and before our confidence is eroded further to please reverse the decision he has taken, not alone in the interests of Cork but in the national interest.

Minister for the Environment (Mr. Spring)

I am glad of the chance to clarify my position and that of the Government in regard to the issue of the relocation of An Foras Forbartha in the development which was planned by Power Securities for Merchants Quay in Cork.

The Government decided in May 1981 that the institute should be decentralised to the Cork development but no steps were taken to give effect to that commitment. There never was a commitment by An Foras Forbartha to a booking in the development and there is no question, therefore, of reneging on any commitment. Following the Government decision to which I refer, it was conveyed by the then Minister to the board of An Foras that the institute should proceed to make the necessary booking and that the necessary planning should be undertaken. Negotiations were opened by the institute with the company and the Department were kept advised of the progress of these. Finally, the Department were advised by the board of An Foras on 7 September 1982 that the institute were ready to go ahead and enter a pre-let agreement with the company in respect of 35,000 square feet of office space on certain conditions, one being that the necessary finance would be assured. The estimated cost of the move was put at £2.5 million for the first year and £355,000 over and above the normal operating cost each year after that. Nothing was done by the Government to give the necessary assurance or to make any financial provision to meet the heavy costs involved and, in the circumstances, no action could be taken by An Foras to proceed with the booking. I inherited that situation.

Another condition on which the board of An Foras sought clarification from the Minister before they could proceed related to the position of An Foras staff. Understandably, the opposition within An Foras to an arbitrary relocation from Dublin to Cork was strong and widespread. While the Minister of the time was following the line that there was a definite relocation decision and that the staff would have to live with that, assurances were being given outside that there would be no forced relocation. The Government decision of May 1981 provided that special consideration should be given to individual members of the staff of An Foras who did not want to relocate but no expression was ever given to the special consideration and no offer by way of special consideration was ever made to the staff. Indeed, no effort was ever made to come to terms with the clear and understandable opposition of the staff to being shifted to Cork without any regard as to whether they wanted to go, were willing to go or if they would go.

The position as I found it was that there had been a Government decision in May 1981 that An Foras should be relocated to the development in Cork and the company concerned was advised by the Minister of this decision, but nothing effective was done to bring that decision to reality. In particular, nothing was done to ensure the necessary financial commitments were made or to get the agreement of An Foras staff to the relocation on some reasonable basis. If there ever was an intention to move the institute to Cork, it was a paper decision. It was the previous Government who made this decision and failed to deliver on it. It follows that there is very little credibility to the position being taken up this evening by the Deputies. I would like to stress that a decision by Power Securities to withdraw from the development at this stage cannot be put down to any decision of mine. I have not announced any final decision. I have been reviewing the situation created by this very difficult, not to say impossible, legacy from the previous Government and trying to see whether there might be any way forward.

The practical difficulties and the very substantial cost and the completely unresolved issue of staff opposition cannot but raise serious questions as to whether this was ever a practicable or seriously intended proposal. It was rather ironic that, on the very day An Bord Pleanála gave the final approval of the planning permission for this development, this decision was announced by Power Securities. It is difficult to sustain the view that the viability of this huge project with its massive shopping and other provisions depended critically on the question of An Foras booking. The amount of accommodation which An Foras would have required, based on their own assessment of requirements during negotiations, was 35,000 square feet or less than one quarter of the total office space planned. It is clear that An Foras scheme, to be practicable, would have been but one element and a relatively small one in the economics of a project of this scale.

I understand that the Department of Posts and Telegraphs had a commitment to renting 25,000 square feet. If the shadow which has fallen on the Cork project is blamed on An Foras it is because the previous Government made a decision on which they did not or could not deliver. I reject any suggestion that this Government have brought on the difficulties. I naturally share the concern over the withdrawal of the company. It is clear, however, from reports that there is still interest in Cork which remain hopeful that the project can still go ahead, perhaps with modification or different phasing. I am glad that the corporation still have a positive and helpful attitude towards the efforts and are expected to help to bring this about. I hope their efforts will be successful.

This Government will do all they can to help in dealing with the problems in Cork city, economic and unemployment problems and the need for urban regeneration. I believe the city and its surrounding development areas have a major part to play in the new efforts that are needed, not only to generate more development overall but to do something about the extent of migration to Dublin with all the problems which that causes, both in the capital and in the areas which are being depopulated. I have just made a grant allocation of £350,000 to the corporation to enable better progress to be made in dealing with youth unemployment while at the same time helping to improve the appearance of the city by means of environmental works. The Cork high level area water supply improvement scheme, which has been approved at an estimated cost of £2 million approximately, will service the industrial estate development at Kilbarry as well as serving other developments. The first phase of the new main drainage interceptor sewer is also expected to proceed. The 1983 capital allocation for roads and housing will be notified to the corporation in the near future and these allocations will reflect the needs of the city to the maximum extent possible. In relation to Deputy Lyons's point regarding the gas pipeline, I have no information on that at present but I will contact him if necessary because I have the same interest as he has in making sure that Irish companies get any available employment.

The Dáil adjourned at 9 p.m. until 10.30 a.m. on Wednesday, 2 March 1983.