Oireachtas Joint and Select Committees

Thursday, 7 November 2019

Public Accounts Committee

Business of Committee

9:00 am

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent) | Oireachtas source

I am referring to page 23, where it is stated:

Overall, it is the assessment of this review that the Department complied with the project management framework in place at the time. [That is of concern to me, regardless of whether the Department complied with it ] The final assessment of this review considers that the main problem with the project was the fact that the original project promoters, while very well-intentioned and passionate about cinema, were not sufficiently skilled to manage a project as complex as Pálás. Solas had no demonstrable experience of operating a cinema or managing a large construction project ... [and there was a] lack of relevant experience.

Passion is great. I am always giving out about a lack of passion and a lack of vision, so that is marvellous. I want to take the focus off the people who came forward with passion and vision but who did not have the experience. I will go to the Department, which saw that passion and vision, but did not match it with oversight. In the sentence I have just quoted, I am being told the Department complied with what was in place at the time. I have made notes on it. I am almost about to give up. On the one hand, the Department is saying it has learned something from it while , on the other, it is stating that it complied with what was in place at the time.

Another concern relates to the funding. It has been suggested that the operator of the cinema was the second biggest contributor after the Department. In fact, Galway City Council was the second biggest contributor because it donated the site, which was worth almost €2 million, and it gave €500,000 on top of that. This is not even recognised in this review, which is a matter of great concern.

We knew generally at the time that there were problems with this project. This is what is important. How can projects go ahead if people, including lots of councillors, had concerns? They were demonised and ostracised and told they were not wearing the Galway jersey. This was the type of conversation that happened in respect of this project. We were the ones who endorsed the project in the beginning. We did so with vision. As the problems emerged, we called for accountability. Those who dared to ask questions were told they were not donning the jersey. This is a problem that must be learnt by all public representatives.

Consider, also, the bespoke nature of the project. Perhaps somebody could explain what that means. On page 22 of the review, it is stated:

The bespoke design of the building, while architecturally significant and award-winning, does present Element Pictures with a number of challenges as operators. The Pálás cinema was designed by De Paor architects and has been described as a contemporary moulded-concrete "tower house". [And the description of it is included] ... the facade may be somewhat intimidating to people and, as such, presents a barrier to entry. Element Pictures [who have been left with this baby on their hands now] are working to make the interior as warm and inviting as possible and encourage the public to explore and experience the building. The highly bespoke nature of the building added to the overall cost of the project and over the long-run means that upkeep and refurbishment of the building will be a costly undertaking, as there are a number of functionality issues that make the building less than optimal for its intended purpose.

The Department, which might as well be working for Fáilte Ireland, goes on to give all the advantages to the cinema - which we knew and that is why we have been promoting it - and tells us how important it is for the area of Galway and the cultural quarter. It tells us that there are four houses at the site and that these will be artisan dwellings. The Department does not mention, however, that these houses have been empty since the council purchased them in 2005 or 2006. In a housing crisis, these four houses are empty, but that is not mentioned at all.

Five reviews were carried out. Fair play to the Department - it was good and carried out the five reviews. The reviews, however, were limited and each time they concluded that they had no choice but to go ahead and not have a hole in the ground. They also tell a story that is not quite accurate with regard to the first contractor. The review provided a list of reasons as to why there was a problem, one of which was the recession. Earlier in the report, it cited the design problems, delays and other issues that led the builder to walk from the building. It was not the recession. I welcome the report, and it is a starting point, but we or the Comptroller and Auditor General need to go through it.

The promotion of Galway is unnecessary in this context. It is not part of a project review. Did we succeed? Yes, we did. The idea was to build, and we did build, but it was built over a period of 11 years at a cost of €11 million, with a housing crisis in Galway and a failure to purchase a building across the road that was better value at €450,000. All along the way there were implications for the decision to continue. Element Pictures are the operators now. I wish the company the best and have always done so. I have been in the building. None of this is about personal views, it is about how we got to the stage where a project that was to cost much less ended up costing €11 million. It is about how there was no project manager. Solas was offered a project manager by the Irish Film Board and refused to accept. I am just mentioning some of the issues. There is a list of notes, but I will not delay the meeting any longer.

This project raises so many questions and generally it raises very serious questions about the use of public funds in this manner. There have been five reviews into the project that allowed more money to be paid out. Within this there is also the city council that gave a site worth €2 million and gave another €500,000 even while there was a serious problem in Galway around lack of funds for serious issues. I have gone out on a limb for the arts and I have read the arts reports for the committee. This is not about arts versus something else, it is about making very sensible and practical decisions, with proper oversight from a Department. That did not happen in this instance.

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