Bernard Allen
Question:1 Mr. Allen asked the Minister for Tourism, Sport and Recreation if he will make a statement on the position regarding the national conference centre. [7534/99]
Ceisteanna – Questions. Priority Questions. - National Conference Centre.
The latest tender procedure for the development of a National Conference Centre in Dublin, with EU assistance of up to 33 million ecu under the Operational Programme for Tourism 1994-1999, was organised by Bord Fáilte under the direction of the Independent Management Board for Product Development, and advertised in 1997.
The procedure was conducted under the terms of EU Council Directive 93/37/EEC and Bord Fáilte-led evaluation teams undertook detailed assessments of full tender submissions which were received from five consortia. The management board concluded that the tenders submitted were not such as to enable it to make a recommendation and the process then proceeded in April 1998 to the 'negotiated procedure' stage provided for in Article 7 of the EU directive. This was conducted by an independent team of technical experts, specially appointed for the purpose by Bord Fáilte. On consideration of its findings, and following a positive recommendation by the board of Bord Fáilte, the management board decided on the proposal submitted by Spencer Dock International Convention Centre Limited to develop the project at a site in Dublin docklands.
Under the terms of the operational programme, decisions on grant applications in respect of amounts at or above 15 million ecu – productive investments – must be made with the agreement of the Government and the EU Commission on foot of a cost benefit analysis conducted in accordance with Community law. This cost benefit analysis, which was favourable towards the project, was undertaken by independent consultants and on 16 September 1998 the Government agreed to the making of a submission to the EU Commission recommending formal approval for a 33 million ecu grant towards the cost of developing the project. The final decision of the Commission, which is also concluding its examination of a complaint lodged with it on the tender procedures under the public procurement process, is awaited. All queries subsequently raised by the Commission have been responded to through correspondence and meetings between Bord Fáilte, the management board and Commission officials.
The developers are still working towards completion within the timeframe of the current operational programme, should an early and favour able outcome from the Commission's deliberations on the project be forthcoming.
Will the Minister confirm whether the Commission is refusing to sanction tax reliefs and rates remission breaks for the project at the IFSC? If these concessions are not made available this project will be at risk. Will he confirm whether discussions have taken place with the Department of Finance on the implications of the Commission's stance vis-à-vis the concessions for the overall development? Has planning permission been sought and, if so, what is the up-to-date position?
My job was to ensure the grant application for the £25 million of EU funding, 33 million ecu, was in order. I am determined to ensure the project gets the go ahead. I am awaiting information from the EU regarding the availability of that grant. Any matter relating to tax relief is for my colleague, the Minister for Finance. In regard to the planning application, I understand the developers have had meetings with Dublin Corporation and with the Dublin docklands on this matter.
It is incredible that the Minister would wash his hands Pontius Pilate like and say he is not responsible for the tax breaks for this project. Is he aware of an article in The Sunday Tribune in January that stated the conference centre is threatened if tax reliefs are abolished? If so, surely his curiosity would have aroused him to make inquiries and get information on the impact of this threat to the project. As Minister with responsibility for tourism and sport he would have his own opinion on the future of this project. He cannot bury his head in the sand and ignore the risks confronting the project. Has he had discussions with the Minister for Finance on the implications of the Commission's stance?
Yes, I have made it clear to my colleague, the Minister for Finance, that I have genuine concerns regarding this project. I met with the developers, Treasury Holdings, in my office on that issue and I explained to the Minister their fears about tax concessions. From day one I have backed this project. The matter was off the rails when I came to office 18 months ago. We are further down the tracks now than in the past eight years. This is the third attempt to get a conference centre. The Deputy and my predecessor support the conference centre. We learned from the mistakes of previous Governments and were able to overcome some of those mistakes. I am totally committed to this project and will do everything possible to ensure Ireland has a conference centre. Dublin is the only city in Europe which does not have such a centre. While I have raised my concerns and listened to all involved, the matter of tax relief and the newspaper article cause concern.
I accept the history lesson offered by the Minister. In the event of the Commission refusing to give the concessions outlined, is there a doomsday plan in place? Is the Government considering other ways of supporting this project in the event of the Commission rejecting the application submitted?
I do not envisage doomsday. The eventual decision is one for the EU. It is the bank that is providing the £25 million funding for the project.
Is there a fall-back position in the event of the Commission refusing to give these concessions?
We will negotiate to the end on this matter. There is no plan B. We either get the funding and proceed with the conference centre on this third attempt, or the conference centre will not go ahead. We are determined to ensure it proceeds. It is the jewel in the crown in the city of Dublin and we all want it to proceed. The benefits to the economy are inestimable. I have the full backing of the Taoiseach for this project. He is fully behind the setting up of the conference centre and developing the Dublin docklands area.