Dáil debates
Tuesday, 28 June 2005
Adjournment Debate.
National Aquatic Centre.
10:00 pm
Joan Burton (Dublin West, Labour)
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One of the water slides in the national aquatic centre is called the dark hole. I reckon the Minister for Arts, Sport and Tourism, Deputy O'Donoghue, wishes he could climb into that dark hole and hide while somebody competent sorts out the mess in the €62 million centre.
This week's revelation that the national aquatic centre is losing 5 million litres of water a month have really proven to be the straw that broke the camel's back. Can the Minister substantiate reports that substantial cracking is visible on both floors of the centre's underground plant room and that more than 20 large cracks have appeared? Can he substantiate reports that design flaws make it difficult to maintain the pool's plant equipment? Is it true that the centrepiece of the national aquatic centre, the 50m competition pool, is open for a mere four hours in the morning from 6 a.m. to 10 a.m.?
The Minister boasted to me previously that the national aquatic centre was completed within the time schedule set for it and within the budget of €70 million. Would he make the same argument if a builder built his home ahead of schedule and within budget only for the house to fall apart within two years? Somehow I doubt it. Will the Minister publish a detailed analysis of how the €62 million cost of the centre was arrived at, how much was spent on consultant and project management and how much on actual building and design and to which individuals and companies payments were made?
It has become apparent that the problems with the national aquatic centre are not only structural but that it is mired in a range of legal, contractual and financial difficulties. Court reports of Dublin Waterworld making payments of €4.5 million for unspecified services to a subsidiary of the company that secured the contract for the national aquatic centre during a time when the parent company was in rent arrears of €1 million beggar belief. Did the Government really hand over a State asset costing €62 million to a company with a share capital of €127 originally registered in the British Virgin Islands, a well-known tax haven?
Will the Minister publish the details of the contract between CSID and Dublin Waterworld and any other companies associated with it? In March, the Minister advised me, "The concept of the National Aquatic Centre has been developed with a clear emphasis on commercial viability. The intention was that once built the facility would be a self-sustaining venture." These words are coming back to haunt him now.
Even more scary than what has happened already to the national aquatic centre is the fact that the Government proposes to use this public private partnership-design build and operate procedure as a template for future substantial capital investments, including the national conference centre, about which we just heard, and the building of offices for decentralisation. Using this unique form of Government management of taxpayers' money, no doubt the cost of decentralisation will easily top €2 billion as this Government has lost the plot in regard to its capacity to manage infrastructural development.
Even the Progressive Democrats are jumping ship and are criticising the national aquatic centre. The Minister of State at the Department of Finance, Deputy Parlon, said of the crisis that he was more than a little concerned when we were spending more on lawyers rather than on architects. For once the Progressive Democrats maths add up in that spending more on lawyers and less on architects equals a broken roof and a cracked pool.
Another of the water slides in the national aquatic centre is called the master blaster. The masters of the national aquatic centre, the Minister, Deputy O'Donoghue, and the Taoiseach, Bertie the Bather, have well and truly been blasted.
We need an independent report into the project and the publication of the report carried out by the independent engineers into the damage to the roof. Some 60 employees were laid off for five months. In the two years of its life, the centre has been closed for five months and water sports have been badly damaged.
The national aquatic centre is the Taoiseach's pet project — stage one of Abbotstown. The Taoiseach, the Minister for Finance, Deputy Cowen, and the Minister, Deputy O'Donoghue, are shareholders in CSID on behalf of taxpayers. They must come out of hiding and take responsibility. The Comptroller and Auditor General advised me on 31 March that "these matters will be examined during the course of my audit of the accounts of CSID Limited." I hope the Comptroller and Auditor General will proceed to examine this saga as soon as possible to prevent further waste of taxpayers' money.
During the 2002 general election, the Progressive Democrats in Dublin West had a campaign button calling on voters to flush the Bertie Bowl down the drain. It is the taxpayers' money that is being flushed down the drain.
Pat Gallagher (Donegal South West, Fianna Fail)
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As the Deputy is well aware, legal proceedings have been taken by Campus Stadium Ireland Development Limited, CSID, the landlords of the national aquatic centre, against Dublin Waterworld Limited, the operators of the centre. This case is currently before the commercial court. As has been explained on a number of occasions to the Deputy, the existence of the court case precludes the Minister, who apologises for being unable to attend tonight, or CSID from speaking freely about the issues under dispute. To do so might jeopardise the outcome of the case. That, despite all the efforts of the Opposition, I will not do.
I am happy to put the factual position on the record. At present CSID has a legal action in the commercial court against Dublin Waterworld, the operator of the national aquatic centre, for breaches of the lease. In the commercial court on 3 June, Mr. Justice Peter Kelly made an order in relation to the following matters, which were the subject of the statement of claim lodged by CSID against Dublin Waterworld. The dispute as to whether Dublin Waterworld is liable to pay over €10 million of VAT on the granting of the lease has been referred to arbitration. This arbitration is taking place and will be concluded shortly. On repair and maintenance issues, the dispute as to whether Dublin Waterworld has properly managed the national aquatic centre has been referred to an architect for expert determination and again this process is under way. There are a number of issues involving the lease, including complaints that Dublin Waterworld failed to pay rent, failed to provide audited accounts — thus preventing the profit share to be calculated — failed to pay insurance on the building and failed to establish a sinking fund. These matters are still subject to court proceedings and are currently before the court. The most recent hearing was yesterday.
Last evening, CSID issued a statement on the matters referred to by the Deputy and I would like to bring this statement to the attention of the House:
CSID has stated that it is satisfied that the reports in the media relating to the National Aquatic Centre are inaccurate in many respects and would be inappropriate to comment on any of these issues as there are proceedings before the court at this time.
In the court yesterday, CSID's legal team referred to a situation that is growing murkier and murkier.
I can give an assurance to the House, on behalf of the Minister, Deputy O'Donoghue, that the primary concern at all times has been to protect taxpayers' investment in this and other projects. I will not play any part in the Opposition's determined efforts to undermine that position, even though Deputy Burton appears to have no compunction about making public statements on matters before the court. Once the court proceedings have been completed, CSID will no longer be constrained from putting the facts before the public and answering any questions Deputies, the media or anyone else may have about the various matters at present before the court.
Deputy Burton has, over the past months, been loud in her comments about the damage caused to the centre on 1 January. It is unfortunate that the freak storm damaged the roof of the national aquatic centre.
Pat Gallagher (Donegal South West, Fianna Fail)
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There was considerable structural damage elsewhere on that same day.
Joan Burton (Dublin West, Labour)
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The Minister of State should ask the Met office. It was not a freak storm.
Pat Gallagher (Donegal South West, Fianna Fail)
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It will be recalled that, for example, two aeroplanes were damaged on the runway at Dublin Airport and buildings on an estate in Clonee, County Meath, were stripped by the exceptionally unusual high winds. I do not know how people in Dublin debate but I suggest that I should be given the opportunity to reply.
Joan Burton (Dublin West, Labour)
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Why did the Minister of State not get the facts first?
Pat Gallagher (Donegal South West, Fianna Fail)
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We cannot complain about any infrastructural development during the 1980s and 1990s when the Deputy's party was in Government because it provided little or no such development. The Labour Party could not fill pot-holes when it was in Government. The Deputy should not talk to me about infrastructural development. There is a great saying in Irish, "Tá an fhírinne searbh". If the Deputy does not want to listen to the truth, then I have no intention of continuing.
Joan Burton (Dublin West, Labour)
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The Minister of State has no answer to——
Pat Gallagher (Donegal South West, Fianna Fail)
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The only policy of the Labour Party is to criticise Government policy. It has none of its own.
Séamus Pattison (Carlow-Kilkenny, Labour)
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The Deputy must allow the Minister of State to make his reply.
Pat Gallagher (Donegal South West, Fianna Fail)
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I need extra time. The damage at the national aquatic centre occurred on a day when the centre was closed for a holiday and there was no injury to staff or the public. CSID handled this situation immediately in an efficient and effective matter. CSID's first priority was to look to the safety of the general public and anybody using or working in the facility. It also focused on ensuring that the damage was accurately assessed by the insurance assessors, that repairs would be carried out as quickly as possible and that the debris in the vicinity of the facility was safely removed. To ensure the health and safety of future users of the facility and to avoid a recurrence of the damage, expert consulting engineers were commissioned to provide an independent report on the situation.
The Office of Public Works, at the request of the Department of Arts, Sport and Tourism and Campus and Stadium Ireland Development Ltd., engaged Kavanagh Mansfield and Partners, consulting and structural engineers, to examine the damage and to provide a report as a matter of priority. The findings of this report guided the response of CSID. They were taken into account in agreeing the repair programme with the contractor and the consultants who carried out the report subsequently provided a service in overseeing the type and quality of the work carried out. This work was in addition to a report prepared by O'Connor Sutton Cronin, an engineering consultancy appointed to examine the damage on behalf of the insurance company carrying the insurance cover on the national aquatic centre. It is important to be independently briefed to ensure that liability is appropriately assigned and that this misadventure is not billed to the Exchequer.
The Deputy has sought to have this independent report published and indeed it will be when the time is ripe. As has been explained to the Deputy on a number of occasions, there are legal, contractual and financial issues that are still on-going and are being negotiated in the light of this report. Therefore, it would not be appropriate to publish it or comment on its findings at this time.
The Minister for Arts, Sport and Tourism said in this House, just the week before last, that capital expenditure on the provision of this facility represented value for money and that is indeed the case. For years we have heard complaints about the lack of proper sporting infrastructure. This Government has made a tangible contribution in this field, delivering over €600 million in capital investment in sports facilities since 1997, in sharp contrast to that provided from 1994 to 1997. The centre was only one of a number of significant state-of-the-art facilities which we have provided. Instead of giving credit where credit is due, or indeed supporting the endeavour, we have an Opposition that cannot wait to find fault and that rushes to criticise.
The motivation of the Government in developing the national aquatic centre in the first place was to provide a 50-metre pool for Ireland's needs and to provide a suitable location for hosting the aquatic events of the Special Olympics. The project was delivered on time and within budget and resulted in games of which everyone could be proud. The centre has justly drawn well-deserved admiration from those who have visited it and used its facilities. Since the centre was opened to the public in March 2003, it has successfully hosted the Special Olympics and later that year the European short course championships — both to significant acclaim. In its first year of operations it had close to 1 million visitors, which placed the facility among the top attractions in Ireland.
Today the centre continues to be equally popular as a facility for those who love water sport, especially young people, tourists and swimmers of all ages and abilities. Despite suggestions to the contrary by the Deputy, the reality is that the centre is fully operational and bringing endless enjoyment to adults and children alike, as well as providing a top class facility for our swimming athletes.
Joan Burton (Dublin West, Labour)
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It is open only four hours a day.