Dáil Éireann debate -
Wednesday, 8 Mar 2000

Vol. 516 No. 1

Written Answers. - National Conference Centre.

Liz McManus

Question:

29 Ms McManus asked the Minister for Tourism, Sport and Recreation the position with regard to the Government plans for a national conference centre; the position regarding discussions with the EU Commission; and if he will make a statement on the matter. [7025/00]

Minister for Tourism, Sport and Recreation (Dr. McDaid):

As the Deputy is aware, the Operational Programme for Tourism 1994-1999, included provision for 33 million ECU, £26 million, in European Regional Development Fund grant aid for the construction of a conference centre in Dublin capable of handling up to 2,000 delegates.

A tender procedure, organised by Bord Fáilte under the direction of the independent management board for product development and conducted in accordance with EU Council Directive 93/37/EEC, was launched in September 1997 and culminated in June 1998 in the selection of the proposal submitted by Spencer Dock International Convention Centre Limited, to go forward for grant-aid to develop the conference centre at a site in Dublin's Docklands.

Following a submission by the Government, the EU Commission, in November 1998, gave its approval in principle for a grant of 33 million ECU to the project with drawdown subject to resolution of an outstanding procedural complaint and the compatibility of any preferential tax regimes for the project with State aids rules.

The Commission closed its file on the procedural complaint in April 1999.

Towards the end of 1999, as negotiations between the various parties moved nearer to the end year deadline for entering legally binding commitments under the operational programme, the Government, after consultation with the Commission, secured agreement by the relevant monitoring committees that the grant of £26 million for the conference centre project would be financed from an increase in Exchequer non co-financed funds to the Tourism Operational Programme 1994-1999 to facilitate completion of the public procurement process and avoid any poss ible risk of loss of European Regional Development Fund funds to Ireland.

Having received confirmation from the Commission on permissible time limits for the grant drawdown, contract documentation was agreed by Bord Fáilte and the developers by end December 1999. I understand the parties' legal advisers are currently in contact over interpretation of one or two provisions of the grant contract.

The Department of Finance and the Commission are still in correspondence on the taxation issues. Meanwhile, planning permission for the conference centre, which was granted by Dublin Corporation in August last year, is under appeal and an oral hearing is under way. An Bord Pleanála has indicated that it expects to have a decision before July this year at the latest.