David Stanton (Cork East, Fine Gael)
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I thank the Ceann Comhairle for allowing me to raise this matter about the need for increased Government support for the Cobh and Great Island community centre project. This project is ten years in gestation. Five national lottery funding applications were made between 1997 and 2000, all of which were unsuccessful. The organisers were informed no stop gap funding was available for such a broad-based community project. A welcome grant of €400,000 was made in 2001, which is the only Government support received to date.

The project committee, together with the people of Cobh, raised €852,000 for the project through local fund raising, pledges and sheer hard work and determination to get the project off the ground. The centre is being built on a valuable 0.9 acre site in the centre of the town, which was donated by the Cobh parish authorities. Between the fund raising and the donation, the community has generated a significant amount for the project. No such facility exists in Cobh, even though it is the largest town in County Cork. It is expanding rapidly with many new housing estates coming on stream. A feeling of isolation exists in the town because there is no focal point for community activities. The organisers and builders of the project are confident it will fill that gap and enhance and complement existing facilities.

The ground storey of the proposed three-storey building will be occupied by the Cope Foundation, which will run a workshop for local people with disabilities. Sixty such people travel from the town every day by train, bus and taxi to a similar facility. The second floor will have an emphasis on youth facilities and activities while the third floor will consist of meeting rooms and so on for community and general use. A multi-purpose hall will facilitate indoor football, badminton and table tennis and can be used as a theatre or concert hall for social gatherings and conferences.

The project is at a crucial stage. The committee is in a dilemma, having to let the builder go from the site because money has run out. The consequence of this action will be regrettable for all. More expense will be involved in getting the builder back on site and the project will hit a low for those who have worked tirelessly for the past ten years and the residents of the area will be annoyed that an unfinished development will be left in their midst. Security and insurance will also become problems while the project could collapse if those involved become disillusioned.

Ideally, the committee would have preferred to have had all the funding in place for the project on its commencement but that was not possible. The committee had €1 million and then sought extra funding but every door was closed. However, the message from Government was that the committee should spend the money it had and more funds would come its way. They did so, hence, the present position. The Government has focused on the community for the past year and in recent days Ministers have referred to the sums available for community development. I hope that is not all pie in the sky and that the Minister of State has good news for this hard working committee, the members of which have given significant time and resources for this project and will make funds available immediately for its completion.

The contract for phase 1 of the community centre was signed in mid-2005 with a cost of approximately €1 million. Great progress was made and the shell of a three-storey building and attached multipurpose hall is in place. Windows have been fitted, the roof completed and external plastering has been done. The contract did not provide for internal finishes and, therefore, the building is not fit for use. Phase 1 is complete because the weather has been so good. It is the intention of the committee and all concerned that sufficient funds will be secured but, unfortunately, this has not happened. I have written to numerous Ministers and Departments over the past month seeking assistance for the project. The shortfall is approximately €600,000. If the Government even matched the funding raised, it would go a long way. The Government does not even have to provide that if the value of the site is taken into account. The committee has put in unbelievable work to raise €852,000, which is no small feat for a small town. The project is badly needed and it would make a significant difference to the town, which has suffered job losses in recent years. It needs a focal point and a sum of €600,000 is not huge in the overall scheme of things. I implore the Minister of State, if he does not have good news, to return to the Government to ascertain what can be done to progress the project.

Noel Ahern (Dublin North West, Fianna Fail)
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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.