Dáil debates

Tuesday, 10 November 2015

Topical Issue Debate

Sports Facilities Provision

6:05 pm

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I also acknowledge what a very important and positive day this is. I am confident history will recognise the leadership role Deputy Jerry Buttimer played in allowing our country to get to this point. It is my sincere hope that the people of Cork will do so as well.

I thank the Deputy for raising this matter. As he acknowledged, Exchequer funding of €30 million in support of the Cork GAA's Páirc Uí Chaoimh redevelopment was agreed by the Government and announced as part of a package of stimulus measures in May 2014. The package set out a proposed additional Exchequer investment of €200 million to fund new projects in a range of sectors. As with previous investment packages, the projects were spread geographically across the country and were expected to create economic activity and employment. The announcement stipulated that projects were approved subject to compliance with the public spending code.

The redevelopment of Páirc Uí Chaoimh includes the development of a centre of excellence, including a full-sized all-weather training facility and the establishment of a local marina park. The redeveloped stadium will see an increase in capacity, with the new development accommodating 45,000 spectators when completed. The proposed provision of €30 million from the Exchequer is expected to help to progress this project, with the balance of funding being provided by the GAA at national, provincial and county levels.

As the funding will be channelled through my Department's Vote, with accountability for the investment lying with the Department's Accounting Officer, full compliance with the public spending code is required by my Department. In addition, the normal terms and conditions of the sports capital programme will apply. The public spending code requires that all publicly funded projects or initiatives should be appraised carefully for consistency with programme or policy objectives and value for money. Following liaison between with my Department's economic, financial and evaluation unit and Cork GAA's advisers, a business case, incorporating an economic appraisal, was submitted on 13 August by Cork GAA. This business case was sent to the central economic evaluation unit in the Department of Public Expenditure and Reform for approval in accordance with the provisions of the public spending code. That Department has recently advised my Department that the business case is public spending code compliant. Following the receipt of the finalised business case from Cork GAA in August, arrangements were made to discuss the project in detail at a meeting with the European Commission in Brussels.

After that meeting and the earlier submission of a pre-notification questionnaire, the competition directorate of the European Commission informed the Department by correspondence dated 28 October 2015 that a notification to the Commission for state aid clearance is required in respect of grant aid for the redevelopment of Páirc Uí Chaoimh. Naturally, this requires further work on the part of both Cork GAA and my Department. The format for the notification will follow a template provided in EU regulations, supplemented by additional material specifically requested by the Commission in regard to the project. This additional material will cover matters such as the nature and scope of the project, the amount of aid and its percentage of the overall costs, or the aid intensity. Other information sought by the Commission includes the planned operation and use of the stadium, attendance figures, participation figures and other details.

The Deputy will appreciate that the Department must comply with the Commission's requirements. While there is a Government decision to grant aid this project, it is not possible to give formal confirmation of the project until this process has been completed successfully.

I want to assure the Deputy and the House that my officials are working closely with Cork GAA and its advisors to ensure that the necessary material is compiled so that the notification can be formally submitted to the Commission as quickly as possible.

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