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Dáil Éireann díospóireacht -
Wednesday, 2 Jun 2010

Vol. 711 No. 2

Tipperary Hostel Project

I thank the Ceann Comhairle for allowing me raise this matter on the Adjournment. Work was suspended recently on the Tipperary hostel project. The project was set up by a voluntary group in Tipperary town to restore an old famine building as a hostel project. Anybody who knows Tipperary town and area is aware this the project is in a RAPID town area. I understand financial contributions were made to the project by various Departments and, in particular, from the dormant accounts fund. The moneys were provided to support the development of the project and to support employment in a town such as Tipperary where there is a great need for employment and capable and skilled workers were recruited to carry out work on the project. Unfortunately, however, some weeks ago announcements were made in the media to the effect that the project was being stopped. People living in the locality find it difficult to understand why it has been stopped when the project is at the half-way stage. A great deal of voluntary work and effort, for which those involved must be commended, has been invested in this project. However, the project is only half-finished and the hostel, which contains a number of beautifully refurbished rooms, cannot be opened.

When I visited the site some weeks ago, I met 25 extremely disappointed men, skilled bricklayers, plasterers, stonecutters, carpenters and electricians, who had been informed that their services were no longer required on the project. I understand that they may be given places on projects in other communities — an eventuality which came to pass in recent days for some of them.

I am concerned that if the site is merely locked up and abandoned, it will be vandalised in the years to come. As a result, a huge amount of taxpayers' money will have been wasted. I request that the funding required to complete the project be given to the local authority or some other agency in order that the work can be brought to a conclusion. If work were completed, the hostel could be sold off as a going concern. There is a great need for a hostel of this kind in the area. It is located within walking distance of a railway station and there are many tourist attractions in west Tipperary. As a result, real potential exists in the context of creating long-term employment in the tourism sector. The Tipperary hostel project could be of major assistance in this regard.

I do not know what is contained in the Minister of State's reply. The downside of raising a matter on the Adjournment is that one does not know in advance what a Minister is likely to say. I urge him to ensure that the money that has already been spent does not go to waste. A way to revive the project must be found. The shutters must not be pulled down. Instead, we must build on the great work that has already been done in the locality.

I am replying to this matter on behalf of my colleague, the Tánaiste and Minister for Education and Skills, Deputy Mary Coughlan. I thank the Deputy for raising the matter because it provides me with the opportunity to outline to the House the position in respect of the Tipperary hostel project.

The Tipperary hostel project is a community-based project managed by Tipperary Hostel Project Ltd. and its objective is the transformation of a famine-era workhouse in Tipperary town into self-catering accommodation for tourists. Since 2000, the project has been successful in securing the support and resources of a number of local agencies, notably FÁS, Tipperary Town Council, South Tipperary County Council, the South Tipperary County Enterprise Board, and the Tipperary Leader group, which provided funds towards a feasibility study, as well as being the subject of local voluntary fundraising initiatives. The scheme of works to renovate and restore this former poorhouse has been in progress since 2000, with an original completion date for the capital elements of sometime in 2006 or 2007.

Upon completion, the facility was expected to operate primarily as a local community-based hostel under community and voluntary management. The income generating feature was expected to finance further educational and training modules on traditional trades and crafts, hosting local, county, regional, national and international residential workshops in Tipperary, which has a very rich history in such artisan work.

The former Dormant Accounts Fund Disbursement Board approved a capital grant of €300,000 for the project in January 2005. Some €284,000 of this has been drawn down to date. Pobal manages this grant on behalf of the former board. An additional grant of €30,000 was approved by the Government for the company to allow it to recruit a project manager. These funds were approved under the dormant accounts fund RAPID additionality measure administered by the Department of Community, Rural and Gaeltacht Affairs. I understand that Department became aware of allegations made against this company at approximately the same time that the matters featured in the national press — that is, 12 March — and immediately instructed Pobal to examine the matter. Pobal's audit services commenced an examination of the company and issued its draft audit report to the board of the company on 26 April. As is normal practice, the board was asked to respond to the issues raised by the audit.

The grants approved for the company are currently suspended pending completion of the audit report and a recommendation from the board of Pobal as to the future action required. I understand the head of internal audit at FÁS has recently been in contact with the head of internal audit at Pobal regarding this matter.

As part of the job initiative programme, FÁS contracted with Tipperary Hostels Ltd. to provide staff to work on the project. The main purpose of the job initiative programme is to assist long-term unemployed people to prepare for work opportunities by providing participants with work experience, training and development opportunities. The programme is sponsored by voluntary organisations and public bodies involved in not-for-profit activities. There are 21 job initiative participants, including one team leader and one assistant leader, involved in this project.

FÁS provides financial support to assist with the job initiative programme, for example, in the form of participant wages. In addition, while on the programme, participants can retain entitlements such as medical cards or child dependent allowance and be eligible for others such as revenue job assist. The project sponsors have informed FÁS that they are currently not in position to provide funding for materials and that the project cannot continue. Therefore, they no longer have a requirement for the job initiative participants.

Following changes introduced on 10 November 2004 by the then Minister for Enterprise, Trade and Employment, Deputy Micheál Martin, no new entrants have been admitted onto job initiative schemes. However, contracts for existing participants are renewed thereby providing them with the option to continue until they are 65 years of age. In order to support the service being provided, community employment participants replace participants who leave job initiatives voluntarily or through retirement.

I understand that FÁS is actively seeking alternative employment for the participants. I further understand that the job initiative participants involved were notified by FÁS on Monday, 31 May 2010 that they will be offered transfers to other job initiative places on the FÁS-funded community employment scheme within the locality as soon as possible. In the meantime, I understand that they are continuing to be paid by FÁS.

Again, I thank the Deputy for raising this matter and for allowing me to clarify the position as it currently stands.

Perhaps the Minister of State might seek clarification for me in respect of the likely future of the hostel project. The latter goes to the heart of this issue.

The Dáil adjourned at 9.30 p.m. until 10.30 a.m. on Thursday, 3 June 2010.
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