Dáil debates

Thursday, 5 July 2007

Other Questions

National Conference Centre.

2:00 pm

Photo of Catherine ByrneCatherine Byrne (Dublin South Central, Fine Gael)
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Question 9: To ask the Minister for Arts, Sport and Tourism the position regarding the development of the national conference centre; and if he will make a statement on the matter. [19326/07]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 36: To ask the Minister for Arts, Sport and Tourism the position regarding the development of a new national conference centre; and if he will make a statement on the matter. [19262/07]

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Fine Gael)
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Question 43: To ask the Minister for Arts, Sport and Tourism the projected level of tourism revenue that would accrue to the State in the event of the development of a national conference centre; and if he will make a statement on the matter. [19341/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 9, 36 and 43 together.

On 5 April last, the contract for the provision of a national conference centre in Dublin was awarded to Spencer Dock Convention Centre Dublin Limited. Under the public private partnership arrangement, Spencer Dock Convention Centre Dublin Limited is required to design, build and finance the national conference centre and to operate and maintain it for a period of 25 years, after which the facility will revert to the State. In return, once the construction of the centre is complete and it is open for business, the State will pay the company an annual charge, the maximum total cost of which over 25 years will be just under €380 million in present day values.

The centre will be capable of accommodating up to 2,000 delegates in plenary session. It will also have 22 multi-purpose meeting rooms and approximately 4,500 m2 of flexible exhibition and banqueting space, along with associated press and delegate support facilities and general utility spaces. The centre, which is to be known as the convention centre Dublin, is scheduled to open on 1 September 2010. In the meantime, the operators, in co-operation with Fáilte Ireland, Tourism Ireland and the Dublin Convention Bureau, will be engaged in marketing the centre to secure bookings for 2010 and after. In addition, the prospects for the successful marketing and operation of the facility will be considerably enhanced by the VAT deductibility of accommodation expenses for business conferences, announced in last December's budget at the behest of my predecessor and included in this year's Finance Act.

The imminent realisation of a national conference centre in Ireland represents a wonderful boost for Irish tourism and for the economy generally. According to a number of independent estimates, the national conference centre, when fully operational, is expected to generate additional foreign revenue earnings of between €25 million and €50 million per year. Currently, promotable business tourism attracts 295,000 visitors and is worth €475 million to the economy annually. Fáilte Ireland's target now is to grow this sector to 600,000 promotable business visitors with a revenue value of €1 billion by 2013.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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I have a few questions on the cost to the Exchequer over the 25-year period before the facility is handed back to the taxpayer. The Minister said it would cost €380 million. Is there a fee on the handover or does it come back automatically without a fee? Will the Minister confirm the date the centre is supposed to be up and running?

I welcome progress on this issue. It is a question I have asked at almost every Question Time for the past five years. I recognise the work done by the Ceann Comhairle in progressing the project when he was Minister for Arts, Sport and Tourism. It is a very important project. Barcelona has four conference centres and we saw what a conference centre did for Birmingham. It will provide a major boost to the economy of Dublin city.

In the proposal for the Shannon region there is a recommendation, supported by the Irish Hotels Federation, that the Government consider a similar conference centre in the Shannon region, otherwise all business tourism would come into Dublin and the centre in this city would take business tourism away from other parts of the country. Will the Minister comment on that?

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The centre is scheduled to open on 1 September 2010. Once it is open for business, the State will pay the company an annual charge. The maximum total cost over 25 years will be just under €380 million. That is net current value. An annual payment will be made that adds up to no more than €380 million at net current value. I do not know whether there is an additional handover fee. That would be a contractual matter and I will have to come back to the Deputy on it.

There is a commitment in the programme for Government to examine the feasibility of a conference centre in the Shannon region. I will move that forward as quickly as possible. The Ceann Comhairle does not need me to plámás him in any way, but we should all salute his work in delivering these projects. It will stand as one of many monuments to the man in this Department, where he did a tremendous job.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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I hesitate to say the Minister's time has expired.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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It is a pity he will not be around to open them.

Photo of Jack WallJack Wall (Kildare South, Labour)
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I also compliment the Ceann Comhairle on this. It moved on in his term in the Department and it is great that we will now have a national conference centre. Will there be transport infrastructure in line with the conference centre? Will there be a Luas connection to Spencer Dock and what will be the timescale for that? It needs to be built by 1 September 2010.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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There are very exciting plans for the Luas extension to the docklands area, but I will have to get the dates for the Deputy. They fit in fairly well with the delivery date of 2010. I will have to get more specific delivery dates, but we are committed to developing the Luas in the docklands area, which will be an enormous help to the convention centre.

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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I want to be associated with the congratulations to the Ceann Comhairle on the conference centre. Is the Minister happy with the size of the centre, with a capacity of 2,000? I have been at medical conferences where 5,000 and 10,000 people have attended.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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It was studied very carefully and the optimum figure was 2,000 delegates. If we fill it with 2,000 delegates on a regular basis, it will be more beneficial to us than on the rare occasion in which we will get 5,000 or 10,000, unless there is a Fine Gael Ard-Fheis being held.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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They are getting bigger all the time. Tourism Ireland is promoting the conference centre, as the Minister stated. Generally speaking, some of these companies often plan conferences two, three or four years in advance. Can the Minister refer to the initiatives that are ongoing at the moment? Have businesses already shown an interest in holding conferences in Ireland? What are the plans to promote this centre?

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I will have another occasion to outline that in more detail. Fáilte Ireland and the Dublin Convention Bureau are already engaged in marketing the centre. They are actively looking for bookings for 2010 and afterwards.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Is it Tourism Ireland or Fáilte Ireland?

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Both are out there in different geographic locations, along with the Dublin Convention Bureau and the Department. All hands are on deck to secure bookings from 1 September 2010.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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It is important to secure new business if possible. If business is being displaced from Kerry or other places, then it will not serve its purpose. It is very important that new business should be targeted.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I take the Deputy's point. The facility will be here at that date and it is incumbent on us to fill the halls. I am greatly encouraged that the bodies are actively marketing at this point to ensure we have bookings. The convention business is long term and companies must book many years in advance. Systems are in place all over the country to book most of our conference facilities for 2010, 2011 and thereafter.