Pat Breen (Clare, Fine Gael) | Oireachtas source

I thank both Deputies for raising this issue. The Cork event centre project consists of the design, construction and operation of a new multifunctional event centre in Cork city with a capacity of approximately 6,000 people. It is envisaged that the event centre will be capable of accommodating a range of events, including concerts, festivals, family entertainments, arts, cultural, sports, exhibitions, conferences and trade shows. This is a project, as both Deputies know, led by Cork City Council. In December 2014, the development company BAM was selected by Cork City Council as the preferred tenderer. BAM in turn has engaged international events company Live Nation as the preferred operator.

The project is being developed and managed ultimately by Cork City Council. This means that Cork City Council is responsible for its delivery. A service level agreement has been signed between the Department of Culture, Heritage and the Gaeltacht and Cork City Council. This agreement sets out the terms and conditions of the grant of €12 million, and the Department has paid €1 million to Cork City Council. In addition to the €12 million provided by the Exchequer, Cork City Council itself plans to contribute €8 million to the project. The total project cost of the Cork event centre when the tender was awarded to BAM by Cork City Council in December 2014 was €50 million. The latest financial projection provided by Cork City Council to the Department of Culture, Heritage and the Gaeltacht, however, indicates a significant increase in the cost of the event centre. In September 2017, Cork City Council wrote to the Department of Culture, Heritage and the Gaeltacht seeking additional funding of €10 million for the project from the Exchequer. This would bring the Exchequer contribution to €22 million and total public funding to €30 million.

This project is very much in line with what the Government is seeking to achieve in terms of balanced regional development and sustainable urban development under Project 2040. The Cork event centre is a Government commitment and it also underlines the Government's commitment to culture. The new centre will provide a substantial addition to the cultural offering in Cork city and county when it is complete.

In the context of the application for additional funding of €10 million for the project, the Department of Culture, Heritage and the Gaeltacht, as the sanctioning authority, needs to ensure that the project is robust, complies with the public spending code and will deliver value for money for the Exchequer. I am sure the Deputies will agree with me on that. Due to its size and cost, this project has significant procurement, state aid, legal and matching funding complexities.

Significant work is taking place by all parties involved to develop a sustainable project, culminating in a new cultural centre for Cork. I confirm that high-level meetings continue to take place regarding the legal and funding requirements in light of the additional €10 million funding request. Cork City Council is also reviewing a number of elements of the project, such as the revised application for planning permission which was submitted in August 2018 and funding of ancillary infrastructure near the event centre. I will restate this to both Deputies and the people of Cork. All parties are eager for this project to progress and to be delivered in accordance with the relevant Exchequer funding and legal requirements.

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