Dáil Éireann debate -
Thursday, 10 Apr 1997

Vol. 477 No. 4

Written Answers. - National Conference Centre.

David Andrews

Question:

23 Mr. Andrews asked the Minister for Tourism and Trade if his attention was drawn to the fact that a complaint had been lodged with the European Commission in respect of the Government's application for EU funding for the proposed national conference centre; and if he will make a statement on the matter. [9235/97]

Mary Harney

Question:

25 Miss Harney asked the Minister for Tourism and Trade the current position regarding the proposed national conference centre at the RDS, Dublin 4; and if he will make a statement on the matter. [9358/97]

Helen Keogh

Question:

33 Ms Keogh asked the Minister for Tourism and Trade the current position regarding the proposed national conference centre at the RDS, Dublin 4; and if he will make a statement on the matter. [9359/97]

David Andrews

Question:

37 Mr. Andrews asked the Minister for Tourism and Trade whether the European Commission has indicated that it is unhappy with the way in which the Government has proceeded with the plan to develop a national conference centre; and if he will make a statement on the matter. [9234/97]

Ivor Callely

Question:

95 Mr. Callely asked the Minister for Tourism and Trade the attraction and potential of a national conference centre in Dublin; the timescale likely for development in this regard; and if he will make a statement on the matter. [9396/97]

Minister for Tourism and Trade (Mr. E. Kenny)

I propose to take Questions Nos. 23, 25, 33, 37 and 95 together.

As I have indicated in an earlier reply, the Deputies will be aware that the Operational Programme for Tourism 1994-1999 makes provision for European Regional Development Fund support for a large dedicated conference centre capable of handling up to 2,000 delegates to be built in Dublin.

The tourism potential of a national conference centre in this country has long been recognised and the first Operational Programme for Tourism, 1989-1993, contained provision for such a development. No progress was made, however, at that stage.

In September-October 1995, Bord Fáilte organised an open tendering competition seeking interested parties to submit proposals for grant assistance towards the development of such a centre and 13 consortia submitted full proposals. These were rigorously assessed by a Bord Fáilte led assessment team and considered by the independent product development management board set up under the OP to consider such projects. None of the applicants met the criteria which had been set and the open tendering competition accordingly terminated.

Following the failure of the competition to produce an acceptable private sector proposal to develop the centre, the independent management board, BFE area under whose aegis the competition was run, recommended that the strategy be reviewed. They suggested as an alternative the possibility of developing the centre through a public sector option. As a result the Royal Dublin Society (RDS), as a voluntary body, potentially eligible for consideration for the higher rate of European Regional Development Fund assistance normally reserved for public-similar bodies, was invited to submit a proposal on this basis. A similar invitation subsequently issued to a public-private joint venture who failed to submit an initial application within a twice extended deadline.

Upon completion of their examination of the RDS proposal, Bord Fáilte, on the recommendation of the management board, commissioned an independent cost/benefit analysis which is required under the tourism OP in the case of all large projects. This was undertaken by an experienced UK consultancy firm who were selected by Bord Fáilte on the basis of a competitive tendering procedure. The results were favourable to the RDS proposal.

The Government, having taken into account a number of factors including the recommendations of the management board and Bord Fáilte, and the results of the cost benefit analysis, agreed to make a submission to the European Commission, recommending formal approval of the proposed development by the RDS. The Government is recommending approval of 75 per cent capital grant aid subject to the existing financial provision for such a project in the current tourism OP. The proposal has been submitted to the European Commission for approval, as required under the OP for projects of this scale.

Since then the Commission officials of DG XVI and their consultants have been continuing their examination of the Government's submission including the indepth cost benefit analysis. As part of this examination they have sought clarification on a number of issues and my Department is currently dealing with some final queries, recently received, on which the Commission require a response before they are in a position to make their final decision. These queries are currently being dealt with as a matter of priority in my Department.

The Deputies will recall references in the course of my reply to the House to questions on the same project on 5 March last as reported in Volume 475 No. 8, columns 1,594 to 1,600 of the Official Report, to reports about a complaint lodged with the commission. I have indicated in a written reply to the House two days ago that the European Commission has now communicated formal notice of a complaint lodged with them on the subject of selection procedures. The clarifications sought in that communication are currently being prepared in my Department in consultation with Bord Fáilte who carried out the assessment of applications under both the tender competition and the alternative strategy.

A specific timescale for commencement or completion of the national conference centre project cannot be determined until the proposal has been formally approved by the European Commission, and matters such as planning permission are in place. There is, however, no reason at this stage to believe that the project cannot be developed under the tourism OP in accordance with the permissible timeframe.