€5.7 million was allocated as a budget day adjustment in 2000 for four projects, at Kenmare, Cahirciveen, Rosses Point and Roundstone. These were to be four flagship projects in advance of the NDP marine tourism grant scheme which was launched in February 2002.
The estimated total cost of the Kenmare projects was €1,665,540 which included provision for a pier with slipway and adjoining buildings on which marine leisure training courses would take place. The grant approved to the Kenmare project of €752,550, 45.2% of estimated total cost, was subject to a number of conditions, including evidence of planning and foreshore permissions having been obtained.
Payment of the first instalment of the grant on 3 December 2001 in the amount of €332,312 was made on the basis of invoices in respect of matured liabilities and copies of the planning permission and foreshore lease that had been obtained. Despite transmitting the latter documents in support of the application for payment, the promoters did not draw the Department's attention to any departure from the terms for the planning permission or foreshore lease in their progressing of the construction of the centre up to that point.
In October 2002 however, following investigation by the Department's engineers, the Department became aware that the development had not been constructed in line with its planning permission, and the Department's engineering division was immediately asked to investigate the situation with the local authority. As a consequence, no further payments from the grant were made and the Department liaised with Kerry County Council on the planning difficulties.
As the promoters had applied for retention permission, it was considered advisable to await the outcome of the planning process before taking legal advice as to how the State's investment should be protected.
Following Bord Pleanála's refusal of retention, a new planning application was made to Kerry County Council. This application was withdrawn in November 2003 and steps were taken by Kerry County Council to enforce the conditions of the original planning permission.
The Department has sought legal advice, in December 2003, on the status of the moneys paid and the status of the outstanding grant.
