Denis Naughten
Ceist:1 Mr. Naughten asked the Minister for Tourism, Sport and Recreation if he will make a state ment on the position regarding the National Conference Centre. [2950/00]
Ceisteanna–Questions. - National Conference Centre.
Ivor Callely
Ceist:76 Mr. Callely asked the Minister for Tourism, Sport and Recreation the level of funding available from the European Union regarding the proposed National Conference Centre; the conditions which may be attached to the EU funding; and if he will make a statement on the matter. [2879/00]
I intend to take Questions Nos. 1 and 76 together.
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.
Following the failure of processes in 1995 and 1996 to secure an approved proposal, a new 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.
This process 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. The proposal was then subjected to an independent cost benefit analysis.
In September 1998 the Government agreed to the making of a submission to the European Commission recommending formal approval for a 33 million ecu European Regional Development Fund grant towards the cost of developing the project. The Commission's approval, in principle, for the grant was notified in November 1998 with draw-down subject to resolution of an outstanding procedural complaint and the compatibility of any preferential tax regimes for the project with State aids rules.
The Department of Finance still awaits a final decision from the Commission on taxation regimes for the project which are separate from the tender procedure. The Commission closed its file on the procedural complaint in April 1999. This allowed Bord Fáilte and the developers to proceed with negotiations on legally binding commitments in relation to the project, which the developers were required, under the terms of the operational programme and the grant offer, to enter into by end 1999.
Having received confirmation from the Commission on the permissible time limits for the grant draw-down, final documentation was agreed and subsequently lodged with Bord Fáilte on 30 December 1999. Since then, I understand, there has been ongoing contact between the two parties regarding certain issues relating to the execution of the grant agreement to ensure that all requirements have been full and satisfactorily met.
Additional InformationIn the meantime, as negotiations moved nearer to the end year deadline for entering legally binding commitments under the operational programme, and in order to facilitate completion of the public procurement process and avoid any possible risk of loss of European Regional Development Fund funds to Ireland, the Government agreed with the Commission 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. This facilitated a decommitment of European Regional Development Fund funds from the programme for recommitment to other operational programmes which was done last December, in advance of completion of negotiations and entering into legally binding commitments by the developers.
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 scheduled to begin in February. An Bord Pleanála has indicated that it expects to have a decision before July this year at the latest.
In light of the public inquiry taking place later this month, has the Minister got a guarantee from the developers that they shall proceed with the conference centre even if the overall development is curtailed?
This is an exceptionally complex situation and it would take me all of Question Time to explain it. Of course, we want the development to proceed but our next hurdle will be planning permission. That will be heard shortly and it is hoped to have the results in July.
If planning permission for the whole development is not granted, will it jeopardise the building of the conference centre? Has the Minister questioned the developers on the viability of a scaled down project? What discussions has he had with the developers?
Planning permission is vital to any project regarding any institution or programme. It is all important in terms of this issue.
For the full project.
Planning permission is the next necessary step and we will get a report on that in July. I have had little or no discussions with the developers. The developers are in discussions with the people from Bord Fáilte and whatever other contacts they may have outside that. As regards the contract they have with us and Bord Fáilte, they have been in discussions with officials from Bord Fáilte on an ongoing basis.
Will the centre be viable if there is a cutback in the scale of the development? Is the £26 million in grant-aid from the European Union still on the table? When does the Minister hope to have a decision on the tax incentives? What are the commencement and finalisation dates of the project?
I am not sure whether the Deputy is aware that the viability of the project is a matter for the developers. We have satisfied ourselves in that they signed the contracts with us before the end of the year. That contract has been signed between Bord Fáilte and the developers and they will go ahead.
On the £26 million European Regional Development Fund grant, as the Deputy will know, I brought this matter to Government in November. We transferred the £26 million or 33 million ECU grant out of the operational programme and have diverted it to other operational programmes. The grant-aid, the £26 million, became available from the Exchequer.
Tax incentives have nothing to do with my Department. It is a matter for the Department of Finance, the developers and the EU Commission. My main hurdle is to get over the planning permission. In football terms, one looks forward to one's next match. The next match for me is to get over the planning permission.