Pat Gallagher (Donegal South West, Fianna Fail)

I thank Deputy Jim O'Keeffe for providing me with this opportunity to report to the House on the background and current position regarding the matter of Dublin Port Company and the Anna Livia Consortium which is one of the candidates for the provision of a national conference centre. The Office of Public Works has provided my Department with an information note on some key events in the procurement process for the national conference centre and it is appropriate to refer to some of these key events by way of background.

In June 2003, the Government agreed in principle to the provision of a national conference centre. To facilitate and oversee the process, the Government authorised the Minister for Arts, Sport and Tourism to set up a steering group to include the Chairman of the Office of Public Works and senior representatives of the Department of Finance and Fáilte Ireland. The group was to be chaired by the Secretary General at the Department of Arts, Sport and Tourism and was to be supported, as necessary, by professional expertise, including the National Development Finance Agency.

In November 2003, the steering group approved the placing of advertisements by the Office of Public Works seeking expressions of interest for the provision of a conference centre on a design, build, finance, operate and maintain basis. Responses to the advertisements were received from four candidates in January 2004. Subsequently, tenders from two of these candidates, including the Anna Livia Consortium, were received by the Office of Public Works and are currently being assessed.

On 22 March 2005, the Department received a press query by e-mail regarding the use of land in the ownership of Dublin Port Company in connection with a proposal for the national conference centre. On 23 March, the Department requested Dublin Port Company to provide it with relevant information regarding the proposal. On 1 April, Dublin Port Company replied to the Department stating that it was facilitating a consortium in a tendering process for the national conference centre. On 1 April, the Department requested the company to provide a note setting out the involvement of the company in and implications for the company of the consortium's proposal and a clear statement of what was meant by the company facilitating the consortium.

On 7 April, the company replied, stating that it has been facilitating one of the consortia bidding for the national conference centre in so far as it has consented to the inclusion of a site in the ownership of the company in the submission of the consortium to the Office of Public Works as being potentially a suitable site for the national conference centre. The company stated that it had entered into non-binding heads of agreement with the consortium, that it had not concluded a formal contract with the consortium and that it had not concluded an agreement for the disposal of company assets or to provide access to those assets in favour of any third party.

The principal issue at stake from the point of view of the Department is compliance by the company with the applicable legislation and the code of practice for the governance of State bodies. The primary responsibility for compliance rests with the company. In this regard, the company has confirmed to the Department that it is adhering to the code of practice. In my reply to Question No. 180 on 17 May, I stated that, based on the information provided to the Department, I had no reason at that time to request further information from the company regarding this matter.

On 18 May, the Department received a letter from Dublin Port Company requesting ministerial approval for its proposal to enter into an arrangement with a consortium as detailed in draft heads of terms attached to the letter. The company states that, in essence, the proposal provides that, in the event that the consortium is successful in its bid for the development of the national conference centre and appropriate planning and other consents issue in respect of the national conference centre, Dublin Port Company will make available a site to facilitate the development of the national conference centre, together with further and complementary commercial development.

The Department has had a number of consultations with the Department of Finance regarding the application of the code of practice and the legislative provisions relevant to the particular case presented to it by Dublin Port Company. In this context, the two Departments have agreed that it is necessary to seek the advice of the Attorney General on the matter, in particular regarding the process applicable to the proposal by Dublin Port Company to make available to the Anna Livia Consortium a site to facilitate the development of the national conference centre together with further and complementary commercial development. I assure the Deputy there is no question of a sweetheart deal. He can be assured this will be dealt with in an open and transparent manner.

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