Noel Ahern (Dublin North West, Fianna Fail)

The Minister for Finance announced in budget 2002 that in my Department's Vote a special one-off provision of £450,000 would be included as a contribution towards the cost of constructing a community centre in Cobh. In subsequent years, during which this project went through various preparatory phases, my Department was in close contact with Cobh Community Centre Ltd., the company established to manage the project, and with the relevant local authorities.

In May 2005, following site inspections, discussions with the principals concerned and detailed assessment of their proposals, my Department notified Cobh Community Centre Ltd. that it was satisfied that the project, as then constituted, was viable and was approved for financial assistance. A two-phase development strategy was agreed. Phase 1 was to involve the demolition of an existing building, site grading, drainage, and construction of steel frame works while phase 2 was to involve the internal fitting-out of the community centre.

The overall cost of the project was estimated in May 2005 to be €1.6 million, including a small contingency sum. Phase I was costed at €800,000, while phase 2 was costed at €725,000. My Department agreed with Cobh Community Centre Ltd., that the full Exchequer allocation of €450,000 should go towards the costs of phase 1 and should be drawn in three instalments, on foot of appropriate certification. It was understood that the balance of phase 1 funding would come from a number of sources, including the Cope Foundation, local authorities and the Catholic Church, as well as local contributions. The local authorities contributed more than €150,000 to date, which means more than €600,000 in public funds has been invested.

Phase 2 of the project was to be funded by the bodies just mentioned and a credit union loan of €500,000. On this basis, the full amount of €450,000 was drawn down by Cobh Community Centre Ltd. in September, October and November 2005 upon certification to my Department by Cork County Council that relevant works had been carried out in a satisfactory manner. On 30 December, Cobh Community Centre Ltd. acknowledged that it had received the final grant payment in respect of this project and thanked my Department for its help and efficiency in dealing with the matter. There was no suggestion at that time that there were difficulties regarding funding for phase 2 of the project.

However, a letter dated 10 January 2006 from the chairman of the Cobh Community Centre Ltd., raised issues relating to funding and the level of Government support for the project. In this letter, the chairman stated that phase 1 of the project, due to be completed very shortly, cost more than €1 million. This was the first we heard of prices going through the roof. The letter intimated, without outlining detail, that the project cannot proceed further because of lack of funds. My Department will shortly contact Cobh Community Centre Ltd. to establish in detail the current position. However, I acknowledge the value of this project to the community in Cobh, and the sterling efforts made locally to raise funding. They have done a lot of work to bring the project to fruition. However, the House must appreciate that I am not in a position at this time to commit to further Exchequer funding.

I heard Deputy Stanton say that they were advised to spend what they have and come back for more. If that is in writing, I would like to see it. It may be that letters are flying around to different Ministers seeking funds. As I said, we were already dealing with the matter in the Department. It was originally given to my Department by the Department of Finance. The letter dated 10 January was the first we knew of any difficulties in this regard. We will now contact the body seeking further details.

I undertake to come back and respond further to the Deputy. It is a fact that €600,000 of public funds has gone into this project, which is a considerable amount of money. Given that the cost increased, obviously something happened along the way. Perhaps extra work was carried out. The Department received the letter dated the end of December thanking it profusely, and ten days afterwards we heard the bad news, which was the first time we heard about it.

I need further information on the matter. Perhaps someone else knew something, but the Department certainly did not. I will undertake to get some additional information to see what can be done, if anything.

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