Dáil debates

Tuesday, 10 November 2015

Topical Issue Debate

Sports Facilities Provision

6:05 pm

Photo of Jerry ButtimerJerry Buttimer (Cork South Central, Fine Gael)
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I thank the Ceann Comhairle for allowing me to raise this matter on a very emotional and significant day. All politics is local; that is why I am here. On the day we signed the commencement order of the marriage equality Act, I raise the issue of the need for clarity to be provided on the funding for the redevelopment of Páirc Uí Chaoimh in Cork.

The Government has a very proud and strong record on supporting large, important and necessary infrastructure projects in Cork. Deputy Varadkar, the predecessor of the current Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, ensured that, with a limited budget, projects on the south side of the city were funded. The current Minister has announced funding for the Dunkettle interchange and the Cork–Ringaskiddy road under the capital programme. Funding of €10 million has been included for the event centre and funding has been made available for the redevelopment of the historic Beamish and Crawford brewery site.

The other significant project that the Government is committed to involves the provision of €30 million for the redevelopment of Páirc Uí Chaoimh, a development that is necessary and that will provide a significant economic boost for the city during its construction and when the stadium is in use. The estimated total cost on completion is €70 million. The stadium will have a capacity of 45,000. It will be a state-of-the-art facility for players, fans and staff. The investment is not just about the stadium but also about jobs, the development of the marina park and delivering a tourism and economic boost to the area to the tune of €22 million. The combined projects will create employment and see a facility being redeveloped. They will give to a generation of Cork people in the GAA a home for their activities, be it playing matches, training or creating a centre of excellence.

Last month the Cabinet recognised the importance of, and signed off on, the grant of €30 million. We are led to believe, however, that Europe has raised questions about the allocation of the funding. It is important that there be clarity on this. Is Europe becoming too involved, interfering and putting its nose in where it should not be? Is it the case that state rules were misapplied or not applied appropriately? We need certainty at this stage in order that the project can continue and we will see the proper and justified use of taxpayers' money.

As the Minister knows, the Cork county board has done a very significant job in making the finances available along with Government funding. The board is committed to working with all the stakeholders to ensure the project is brought to completion. Without State funding, it would not be possible to deliver the project. If the Government were not involved, no private operator could step in to develop the project. Without Government funding, the redevelopment of Páirc Uí Chaoimh would be unlikely to take place. In saying that, there is a need for clarity and certainty, not only for the people of Cork but also the men and women of Cumann Lúthchleas Gael, all of whom work every day to provide facilities and help young boys and girls to play and train in our Gaelic games.

We know the Government is committed to ensuring this important project is supported and comes to fruition, but it is important that we be assured the Minister and his officials will do everything in their power to ensure the best case is put forward at European level. The project is of importance not only to Cork but also to the wider region, and it is the source of ongoing consultation between the Department and the local team at county board level. It is important to ensure the redevelopment takes place while at the same time ensuring there is transparency and value for money for the taxpayer.

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I also acknowledge what a very important and positive day this is. I am confident history will recognise the leadership role Deputy Jerry Buttimer played in allowing our country to get to this point. It is my sincere hope that the people of Cork will do so as well.

I thank the Deputy for raising this matter. As he acknowledged, Exchequer funding of €30 million in support of the Cork GAA's Páirc Uí Chaoimh redevelopment was agreed by the Government and announced as part of a package of stimulus measures in May 2014. The package set out a proposed additional Exchequer investment of €200 million to fund new projects in a range of sectors. As with previous investment packages, the projects were spread geographically across the country and were expected to create economic activity and employment. The announcement stipulated that projects were approved subject to compliance with the public spending code.

The redevelopment of Páirc Uí Chaoimh includes the development of a centre of excellence, including a full-sized all-weather training facility and the establishment of a local marina park. The redeveloped stadium will see an increase in capacity, with the new development accommodating 45,000 spectators when completed. The proposed provision of €30 million from the Exchequer is expected to help to progress this project, with the balance of funding being provided by the GAA at national, provincial and county levels.

As the funding will be channelled through my Department's Vote, with accountability for the investment lying with the Department's Accounting Officer, full compliance with the public spending code is required by my Department. In addition, the normal terms and conditions of the sports capital programme will apply. The public spending code requires that all publicly funded projects or initiatives should be appraised carefully for consistency with programme or policy objectives and value for money. Following liaison between with my Department's economic, financial and evaluation unit and Cork GAA's advisers, a business case, incorporating an economic appraisal, was submitted on 13 August by Cork GAA. This business case was sent to the central economic evaluation unit in the Department of Public Expenditure and Reform for approval in accordance with the provisions of the public spending code. That Department has recently advised my Department that the business case is public spending code compliant. Following the receipt of the finalised business case from Cork GAA in August, arrangements were made to discuss the project in detail at a meeting with the European Commission in Brussels.

After that meeting and the earlier submission of a pre-notification questionnaire, the competition directorate of the European Commission informed the Department by correspondence dated 28 October 2015 that a notification to the Commission for state aid clearance is required in respect of grant aid for the redevelopment of Páirc Uí Chaoimh. Naturally, this requires further work on the part of both Cork GAA and my Department. The format for the notification will follow a template provided in EU regulations, supplemented by additional material specifically requested by the Commission in regard to the project. This additional material will cover matters such as the nature and scope of the project, the amount of aid and its percentage of the overall costs, or the aid intensity. Other information sought by the Commission includes the planned operation and use of the stadium, attendance figures, participation figures and other details.

The Deputy will appreciate that the Department must comply with the Commission's requirements. While there is a Government decision to grant aid this project, it is not possible to give formal confirmation of the project until this process has been completed successfully.

I want to assure the Deputy and the House that my officials are working closely with Cork GAA and its advisors to ensure that the necessary material is compiled so that the notification can be formally submitted to the Commission as quickly as possible.

6:15 pm

Photo of Jerry ButtimerJerry Buttimer (Cork South Central, Fine Gael)
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It is important to recognise that the business case is compliant with the public spending code. I welcome the fact from the Minister's speech that there is nothing to be unduly worried about. I just hope we can expedite the process quickly, because this is a successful venture not only for Cork city and county but also for the country. When it is completed, Páirc Uí Chaoimh will be central to our application for the Rugby World Cup, along with the fact that it will offer an alternative venue choice for supporters of the GAA and other codes. More importantly, due to the foresight and stewardship of the Cork county board, the venue will also be of benefit to residents and the city generally.

In his speech, the Minister referred indirectly to the fact that it is not just about Cork but also about us as a country. It is about how we can ensure that our sporting facilities are developed to the best level, ensuring maximum attendance for a variety of codes. It is important that Páirc Uí Chaoimh is of benefit to everybody in Cork. The Cork county board must continue to liaise with local residents and residents' groups. I happened to be down at the Marina last weekend and both stands have been demolished, leaving just a piece of the terrace and the pitch remaining. We look forward to seeing the Páirc Uí Chaoimh building project commence next year, so that by 2017 we can have our first Munster final there. Equally, Páirc Uí Chaoimh will be a central part of our 2023 Rugby World Cup bid. We must bring clarity and certainty to that endeavour. I thank the Minister and his officials for their work and stewardship in this regard, because this matter has been a source of worry for many people in Cork in recent weeks. I welcome the Minister's clarification.

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I wish to make three points concerning the matters raised by the Deputy. First, I agree with him that this project is of importance not just to Cork city and county but also to the region. As he has identified, it does have an important national role in that, were our country to be successful in winning the bid for the 2023 Rugby World Cup, due to the agreement we have with the GAA, this would be an extremely important stadium for holding tournament matches.

Second, I want to convey my strong support for this project. I have outlined the different requirements that the Government had to meet in order to move this project forward. There was a requirement concerning the business case, and we also need to engage with the European Commission on this matter. This procedure takes place for large capital projects of any kind.

Third, the Deputy can be assured that my Department and I are giving this matter the fullest possible attention. We will continue to work actively with his colleagues in the Cork county board to ensure that this matter is dealt with speedily and to respond to the requirement of the European Commission for us to participate in the State aid process, which we will do.

As I said at the start, I fully acknowledge that this project is not only important to Cork city and county but also has broader benefits for our country. He can be assured of my support, as Minister, and that of the Government in dealing with this matter. We will keep the Deputy and other stakeholders informed.