I propose to take Questions Nos. 7, 8 and 222 together.
As Deputies are aware, the Operational Programme for Tourism 1994-9 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 has long been recognised and the first Operational Programme for Tourism 1989-93 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 Fáilteled assessment team and considered by the independent Product Development Management Board set up under the operational programme to consider such projects. None of the applicants met the criteria which had been set and the tendering competition, accordingly, self-terminated.
Following the failure of the open tendering competition to produce an acceptable private sector proposal, an alternative strategy was pursued whereby Bord Fáilte, under the aegis of the Product Development Management Board, examined an outline proposal from the Royal Dublin Society, RDS, which, as a voluntary body, is potentially eligible for consideration for a higher rate of capital assistance normally reserved under the operational programme for public and similar bodies.
Upon completion of its examination of the RDS proposal, Bord Fáilte, on the recommendation of the Product Development Management Board, commissioned an independent cost-benefit analysis which is required under the operational programme in the case of all large projects. This was undertaken by an experienced UK consultancy firm which was 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 Product Development Management Board and Bord Fáilte and the results of the costbenefit analysis, agreed on 5 November 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 operational programme. The proposal has been submitted to the European Commission for approval as required under the operational programme for projects of this scale and the Commission's response is awaited.
A specific timetable 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 to believe the project cannot be developed under the operational programme in accordance with the permissible timeframe.
The potential benefits of the proposed national conference centre are considerable. Europe caters for more than 350 major conventions each year and it is estimated that a minimum of a further 15 such conferences, representing an extra 30,000 delegates, can be secured by developing the proposed centre. When account is taken that international conference delegates to Ireland typically spend slightly in excess of £1,000 per head, the proposed centre would have the capacity to generate additional tourism revenue of approximately £30 million and support more than 1,500 extra jobs in tourism. It would also help to improve the seasonality of tourism.