Mr. John McCarthy:

The Chairman raised the issue of this project previously and communicated with the Minister on it. Total expenditure to date on it is €4.9 million. Of this, some €4.2 million has come via community employment and jobs initiatives similar to those provided by FÁS. Funding provided by Pobal and the Department amounts to roughly €330,000.

The project is in a building leased from a local authority. It was funded primarily through the now defunct FÁS. I understand a Garda investigation is ongoing, although another investigation is complete. The Minister's letter indicated the importance of what would happen in the future, as €4.9 million of taxpayers' money had already been invested. There must a clear business case for further investment. The Tipperary county manager has corresponded with the committee through the Department of the Environment, Community and Local Government and indicated that he does not believe there is a basis for rescinding the lease from the company concerned. Perhaps when the Garda investigation is complete, this issue might be revisited and the future use of the building considered.

The vast bulk of the funding for the project came through an arrangement with FÁS, SOLAS and the Department of Social Protection that has been restructured. We are happy to support any initiative, but, given the source of funding, the project's prospects should be looked at through that lens. We will engage in any process put in place.