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Dáil Éireann debate -
Wednesday, 31 Jan 2001

Vol. 529 No. 2

Priority Questions. - National Conference Centre.

Bernard Allen

Question:

53 Mr. Allen asked the Minister for Tourism, Sport and Recreation the steps he is taking to provide a national conference centre. [2495/01]

Ivor Callely

Question:

157 Mr. Callely asked the Minister for Tourism, Sport and Recreation the likely time schedule associated with the development of the national conference centre; and if he will make a statement on the matter. [1475/01]

I propose to take Questions Nos. 53 and 157 together.

As Deputies are aware, the Operational Programme for Tourism, 1994-99, included a provision towards the construction of a conference centre in Dublin capable of handling up to 2,000 delegates. An open tender competition was launched by Bord Fáilte in September 1997 and the successful tender was from Spencer Dock Consortium Limited for its proposed conference centre at Spencer Dock in Dublin's Docklands. In November 1998, the European Commission gave its approval, in principle, for the offer of a grant of 33 million ECU, £26 million to the successful tenderer subject to a number of conditions, including the compatibility of any preferential tax regimes for the project with State aids rules.

Subsequently, having secured EU Commission confirmation on permissible time limits for the grant drawdown, contract documentation was agreed and signed by Bord Fáilte and the developer, Spencer Dock Consortium Limited by end December 1999. The deadline set for drawdown of the grant was 31 December 2002, with major construction work to be under way by January 2001. Planning permission for the development, issued by Dublin Corporation in August 1999, was appealed to An Bord Pleanála. Last July, An Bord Pleanála issued its decision granting planning permission for the national conference centre element of the overall development but not for the bulk of the surrounding development. Since then, the developers have been considering their options in light of this planning decision. Options, of which I have been made aware, would require the provision of substantial additional public funding over and above the terms of the original grant offer from Bord Fáilte.

Following consultations with Bord Fáilte and advice from the Attorney General, I consider that I am precluded from introducing any amendments to the public procurement process through which the Spencer Dock proposal emerged and the grant offer of £26 million was made. I have informed the developers accordingly and asked them to continue to consider with Bord Fáilte how to proceed within the context of the terms and conditions of the existing grant offer. As we are now at the end of January 2001, I expect Bord Fáilte to be in contact with the developers to confirm their position.

On taking office, the first act of the Minister was to scrap the plans for the national conference centre in Ballsbridge. His second act was to give a commitment that one of his priorities during his term of office would be the building of a national conference centre for which tourism chiefs were crying out. In view of what the Minister said, when does he expect a conference centre to be built and operational in this city?

As I already said, when I came into office the entire conference centre was already off the rails and we were in danger of losing the £26 million EU grant. That is the reason we had this current competition. There have been difficulties in relation to planning permission. However, An Bord Pleanála granted planning permission for the construction of the conference centre but, unfortunately, not for the development surrounding it.

As I pointed out to the Deputy, the Government is firmly committed to the conference centre. This is 31 January, the last day for dealing with this aspect of the contract. I have asked Bord Fáilte to draw up a report of the intended plans within seven days. As this is the last day for dealing with the contract, I am sure Deputies will understand that I do not wish to discuss what might be liabilities or entitlements to the two parties involved. I have asked Bord Fáilte to draw up a report within the next seven days as to what exactly is the situation between the two parties at this stage.

The Minister said he was consulted on this matter. In reply to a question in November he said he had no legal right to intervene, nor should he intervene. He states in his reply today that he has received a report from Bord Fáilte. How much more is the developer seeking to proceed with this project and what exactly is the scale of the problem in financial terms?

As I already said, I would prefer to refer to this matter after 31 January. Perhaps I will be in a position to answer the Deputy's question in one or two weeks' time. Legal progress has been made but, in view of the situation that pertains, I am precluded from answering the questions.

I understand the Minister's problem. I accept he cannot answer the question because of the legal constraints so perhaps, with the permission of the Ceann Comhairle, I can use an Adjournment debate next week to put the question again when the legal constraints will have been removed.

The Deputy should give notice of his request in the usual way.

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