The issues mentioned by the Comptroller are to some extent open ones between us following our earlier discussions and the discussions the committee has had with the Accounting Officer for the Department of the Marine and Natural Resources in relation to the Jeannie Johnston and the chairman of An Bord Pleanála in relation to the planning system.
I had not thought to add to my earlier written statement that I provided to the committee on 13 November 2001. This covered the Jeannie Johnston project as seen from the perspective of my Department at that time. I can add a little to that by way of update in that the exposure of the Kerry local authorities, both Kerry County Council and Tralee Urban District Council to this project has risen slightly by about €100,000 on the estimate then made by the Attorney General of £3.6 million, I think it was. This is in token of the increased loan charges arising because of the lapse of time and because of a certain amount of further project management input provided so far without recompense by the local authorities to the project.
In addition we have been continuing our trawl of local authorities more generally to elicit information about the extent of guarantees and similar supports to projects of this kind. That is, projects being promoted in various local authority areas for the benefit of community, tourism, heritage and other purposes. In practical terms, we have now arrived at as complete a list of projects as we can generate at this stage, which are being supported by local authority guarantees and other means. That can be made available to the committee now, if it is of interest.
My general remarks as set out in a statement of 13 November to the committee in relation to this matter still obtain. On the one hand, the Oireachtas has consciously relaxed the ultra vires rule bearing on local authorities and assigned them a general competence to act in the interest of their communities. Action under these powers does not necessarily require direct sanction from my Department or from other central Departments. The exception would occur when resort to borrowing by a local authority is directly occasioned by the wish to support community based projects in a particular way. At least since 1960 and it will continue until the new local government legislation which we are introducing gradually at this time, there is a legal requirement that any local authority borrowing for any purpose, including overdraft, is subject to the sanction of the Minister for the Environment and Local Government or other appropriate Minister. However, direct borrowing by the Kerry local authority has neither been necessary nor sought in the case of the Jeanie Johnston project. Therefore, the matter did not come formally to my Department for approval.
The committee will be well aware that, for practical reasons, the Minister for the Marine and Natural Resources and his Department have, in practice, been exercising leadership on behalf of central Government in relation to the aftermath of the unhappy situation that developed around this project. The committee will know that following completion of the report of the focus group referred to in the earlier analysis of the Comptroller and Auditor General on the marine Vote, the Minister for the Marine and Natural Resources has been considering a way forward for the Jeanie Johnston project, and has brought the issues involved to the attention of Government. As already announced by the Minister, he now considers that a structured winding down of the Kerry County Council-led project is the only practical way to avoid the forced disposal of the Jeanie Johnston vessel and the winding up of the promoting company. The Minister is satisfied that the company should work urgently with Kerry County Council to identify a practical solution to the immediate financial crisis facing the project.
Meanwhile, the Department of the Marine and Natural Resources is working with all relevant stakeholders, including my Department, to support Kerry County Council and the company in this initiative. Active efforts involving the Kerry local authorities and a number of State Departments and agencies concerned are now reaching the end game of an attempt to work out a viable rescue plan for this project. My Department will co-operate in those initiatives and it will also co-operate in the post mortem which must take place to discover how this project got into the difficulties which have become so well publicised, and what lessons must be learned from a project management and credibility perspective to address similar projects in the future.
My Department, in the context of the wider powers now available to local authorities to support community-based initiatives, had some time ago urged caution on the issue of guarantees and on analysing the merits of investing in and supporting projects of this kind. The Department reiterated this advice to local authorities in mid-2001 and that is very much in the Department's mind in its discussions with the county managers' association. There is a new structure in the Department by which there are meetings under various divisional headings with the county managers' association. Depending on the solutions that are put in place to resolve the present impasse besetting the Jeanie Johnston project, my Department will then co-operate with the Department of Finance and other Departments in developing better guidelines for local authorities. The Department wishes in the future to become involved with projects enjoying multiple support such as the present one. That is what I want to say at the outset about the Jeanie Johnston. Obviously, there are other topics on which the Comptroller and Auditor General has touched on which I will briefly elaborate.