Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

Question 2: To ask the Minister for Arts, Sport and Tourism if the review of the first full years trading at the National Aquatic Centre is complete; when he expects the benchmarking exercise to be available; the reason given by the NAC for a decision to increase fees for a participation club (details supplied) by over 300%; his views on the unusual offer made to members for the club in lieu of the proposed increase; and if he will make a statement on the matter. [10988/08]

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 3: To ask the Minister for Arts, Sport and Tourism if he has satisfied himself with the operation of the National Aquatic Centre; the criteria in terms of outcomes that have been established against which to measure success; and if he will make a statement on the matter. [10935/08]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 2 and 3 together.

The National Aquatic Centre is operated by NSCDA (Operations) Ltd., a subsidiary company of the National Sports Campus Development Authority. All day-to-day operations of the National Aquatic Centre are a matter for the authority and the operations company.

When the National Aquatic Centre was restored to the ownership of the NSCDA not only did the centre require an extensive capital programme, much effort has gone into rebuilding the reputation of the centre and increasing its customer base.

Notwithstanding the need to provide an initial subsidy to the centre in its first full year of operation after it was repossessed by the NSCDA. I have previously stated my view in the House that the centre should in time be able to operate on a self-financing basis. In order to assist in this overall process, the National Sports Campus Development Authority has arranged for a financial assessment study to be carried out which will benchmark the National Aquatic Centre against other equivalent facilities. Work commenced in early February with an estimated timeframe of approximately two months. This exercise, together with the centre's 2007 performance, will inform the level of standard against which future performance will be measured.

Regarding the particular club referred to by Deputy Upton, I have been advised that negotiations are continuing with regard to the fees for usage of the centre's facilities in 2008. I hope an agreement can be reached which is satisfying both to the centre and the club in question. I am advised, however, that the proposed annual fee to which the Deputy refers does not represent the level of fees which are to be charged to the club but, rather, the commercial value of the pool usage which the club is seeking. Furthermore, the "unusual offer" referred to by the Deputy was in fact proposed by the club itself not the management of the centre and was acceptable to the centre and subsequently withdrawn by the club.

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

I call Dr. Upton.

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Nearly as distinguished as Pat Kenny.

Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

I thank the Minister for the reply. I tabled the question in respect of the club, which is of the view that there was a proposed increase of 150%. The NAC swim club is critical to a number of athletes, including paralympians. Its social value is making a major impact. The fee structure seems extraordinary in terms of required increases. I referred in my question to the "unusual offer" which I now understand was made by the club. The National Aquatic Centre sees the offer as a commitment, but it was meant as a once-off pro bono gesture and not to be included formally as a continuous commitment, as the club cannot commit to such fees.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

No club could accept the situation in which the club in question finds itself. I am anxious and have instructed officials — in so far as they are involved because this is a matter for the centre as opposed to officials — that an agreement acceptable to the centre and the club should be reached. I told the House previously at Question Time that the centre should at least break even on its day-to-day operations. We should retain this target because not to do so would lead us down a long road towards a subsidy. Irrespective of the capital subsidy for the project, providing a current funding subsidy on a long-term basis would be the wrong direction to take. The club should not and will not be the one to suffer in the middle of such a policy. The centre is doing better in the first quarter of this year than it did in the first quarter of 2007. Its financial operations have shown an improvement, which is encouraging. I am hopeful an agreement can be arrived at.

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

I raised this matter previously and agree that we must target a break-even figure for the operation of the centre. Like Deputy Upton, however, I wished to raise the question of the particular club mentioned. I will not go into detail on the problems it is facing because this matter raises a broader question concerning how the centre has been managed. Since its inception, it has haemorrhaged money and credibility. It does not have a CEO. While everyone states it is a beautiful centre, it is under-utilised and there is a suggestion it is not being managed well. The CEO issue and dissatisfied swimming clubs show a lack of determination on the Minister's part to turn around fortunes in respect of what was a significant investment of more than €70 million of taxpayers' money, including €2 million in subsidies last year and a sum of €600,000 to put its roof back on.

The development in question is part of the centre's attempt to break even, but should it not be marketing the pool to bring attract additional business in order that it can be used? It costs more than €1 million per year to heat and is under-utilised. The way to break even is not to chase away current customers. The reduced figure suggested to the club's members, many of whom are disabled and some of whom are paralympians, is more than €1,000 per year per member. If members of the same family — three children, for example — are in a club, as is often the case, the price being asked is ridiculous in respect of a facility where we want to increase the level of participation. The Minister must address the management problem quickly.

I am sorry to learn that Swim Ireland has washed its hands of the dispute. It is the representative body and should get involved in the matter. Unless a settlement is reached in the next week, the centre may lose the club. It has lost the water polo club and the divers are worried that they will need to leave when their renewal date is reached. That was not the intention behind the centre. I would not have a problem with subsidising it were it being utilised to the maximum and providing the national and local facilities envisaged, but it seems it is a white elephant.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

Attendance figures for the NAC in 2007 amounted to 540,000 and its financial performance in the first quarter of this year has been better than in the first quarter of 2007. Its performance is improving.

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

From a low base.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

Granted. The CEO position has been advertised and someone of a strong nature has been identified. The post will be filled shortly.

It is legitimate that the taxpayer should fund the capital cost. However, the taxpayer is entitled to seek to have the day-to-day costs covered in so far as they can. I did not insist on that this year and instead agreed to a current subsidy of €1.8 million, meaning the clubs need not carry the cost. To ask the centre to strive to break even is not unreasonable, as it would have many good effects. The centre will continue to be a success.

Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

I am reassured to know that the Minister is hopeful that an agreement will be reached with the club. It would be a tragedy for sport and the club, in particular, if the agreement were to fall apart.

Without going into the specifics of the charges — I accept that the details must be hammered out — what is being referred to broadly is out of line with what would occur in respect of another club. The club's loss of a swimming lane could be seen as imposing an additional charge of 25%. Various factors were built into the desired outcome of the negotiations. The sports facility is an important one. It would be a great shame if it were to be neglected or any necessary subsidies were not provided. It is one of the few family friendly facilities in the Dublin area. I am anxious to be reassured on the project's success.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The Government and everyone in the House are fully supportive of the NAC and wish it success.