Mary Butler (Waterford, Fianna Fail)
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The north quays in Waterford is the site of a proposed €350 million regeneration project that will be what can only be described as a game changer for Waterford. This opportunity has presented itself to Waterford through the hard work and efforts of Waterford City and County Council under the leadership of its CEO, Michael Walsh. The proposed investment in Waterford city by the Alhokair Group from Saudi Arabia has provided a much-needed confidence boost for the city and indeed the whole south east. The proposed development at a cost of €350 million will be a game changer for Waterford. The south east needs a regional city of consequence and that city must be Waterford. Waterford must be enabled for propulsive growth. For regions to be strong, they need a strong city.

However, this project is so much more. It has the additional potential to place an emphasis on additional permanent services such as healthcare, education, and transport. The economic benefits will be significant. The proposed development will happen on approximately 17 acres of substantial and spectacular river frontage. The proposal includes development of a total of 60,000 sq. m to include retail units, leisure and office space, 200 apartments and a relocated train station, which will result in an integrated transport hub. This will have the effect of providing a sustainable transport corridor and improving access from north to south by creating a pedestrian bridge linking the north quays to the south quays and the remainder of the city centre. This development will act as a catalyst for other developments like the Ard Rí Hotel and the Michael Street shopping centre. The north quays development will provide an increase of 50% in Waterford's retail offering. It is envisaged that 2,300 direct jobs will be created on completion of the project.

Under the national planning framework, Waterford metropolitan area has been designated for population growth of up to 30,000. If Waterford is to realise this aspiration, there is no doubt that the development of the north quays is crucial. In 2017, Waterford City and County Council applied for funding of €20.1 million from the urban regeneration and development fund for the first phase of this development. It received €6 million, which is well short of what is required. This is incredibly disappointing. The Government hyped up its support for this project consistently and now the city community has once again been left short-changed by this Government. The Government must accept that life exists outside of the M50. Waterford can and must act as a release valve for the pressure that is building in the capital. The city and county council has done an amazing job in getting the project to the current stage with the support of politicians, Waterford Chamber of Commerce, the Alhokair Group and other stakeholders. We now need to see how seriously the Government views promoting regional economic development. What we need to see now is certainty and indeed commitment by the Government to progress this invaluable project. The key words here are certainty, commitment and a timeframe to progress this project. Certainty to enter into contracts is required relatively soon. The investors are committed, as are the local authority and the people of Waterford city and county. Now we need the absolute commitment from Government. At a time of economic growth and balanced budgets, commitment is needed from Government.

Damien English (Meath West, Fine Gael)
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I thank the Deputy for raising the matter, which is very important. It gives me an opportunity to discuss the north quays project in Waterford and, in particular, Waterford City and County Council's successful bid for funding for the north quays under the urban regeneration and development fund. It is a project with which I am very familiar having met many of the stakeholders involved in it on a few occasions over the past couple of years. It is a very worthy project that has been outlined quite well by the Deputy. It is an essential part of the region, not just Waterford city and county. In Project Ireland 2040 and the national planning framework, we recognise the importance of having regional bases like Waterford to serve regions and help them grow. In Project Ireland 2040, we are taking a long-term view about how we plan the shifting of population growth in the future away from the east coast and Dublin and build up other cities in order that they can compete nationally and over time, have an international footing. The chief executive officer of Waterford City and County Council, Michael Walsh, has done a great job in working with everybody to make this happen and put it on the map. We all know it will take time for it to roll out but great work is being done that is being led by the local authority, which is the way development should happen. Again, it had the co-operation of various Departments over the years.

The north quays in Waterford were the subject of a strategic development zone, SDZ, order made by Government in 2016 recognising the social and economic importance of this flagship "brownfield" site to the State and designating the Waterford north quays for mixed-use development subject to preparation of an SDZ planning scheme, which has been done. I met Senator Coffey a couple of times. It was a very important issue when he was Minister of State in the Department of the Environment. It was important that this designation was made thus enabling all the plans for the future.

The national planning framework, NPF, launched early in 2018 as part of Project Ireland 2040 includes objectives to achieve both more compact urban growth within Ireland's cities and the significant further development of Waterford city. Further to the NPF, a ten-year urban regeneration and development fund, URDF, worth €2 billion to 2027 was established with €550 million of committed Exchequer grant funding available to 2022.

Bids were invited from public bodies throughout Ireland for funding under the URDF. Waterford City and County Council submitted a bid for €104.5 million of grant funding in September 2018, seeking a sum of €20 million for 2019. The Waterford north quays bid was made as a category A proposal, on the basis of development being ready to go in 2019 and to continue in the years immediately thereafter. It was well recognised that Waterford, as a city, was well prepared for funds like this but I also want to point out that it was moving these plans on before any fund was established. That is key. It was not the case that it needed a fund to make this happen; it was getting on with the plans and making this happen. It had big visions. I give my thanks to all involved including the investors who also put great work into making this happen.

In November 2018 my Department announced an initial tranche of €100 million which was awarded to a total of 88 projects throughout Ireland for 2019. The Waterford north quays project was awarded €6 million for 2019, which is the single largest award made to any bid under the URDF. In comparison, awards made in respect of multiple bid proposals from each of the cities of Cork, Limerick and Galway resulted in awards of €6 million to €7 million to each city for a combined total of 24 projects in 2019. Later in the first quarter of this year, there will be a further call for URDF bids for funding in 2020. This URDF grant to Waterford, as with all other successful bid proposals, is approved in principle subject to agreement with my Department and may be regarded as the starting point of ongoing support for a significant city centre urban renewal project. As a successful category A project, the award signals commitment to further funding in future years. The overall URDF will increase for 2020 and it is expected that large integrated multi-annual urban projects will comprise a greater element of future overall allocations, as these more complex proposals require sufficient time for design, planning, procurement and construction to be advanced properly.

I have more to say but I am conscious that I am eating into the Deputy's time.

Pat Gallagher (Donegal, Fianna Fail)
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The Minister of State will have another two minutes later.

Mary Butler (Waterford, Fianna Fail)
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It is very important to state that it is extremely unlikely that this project would get over the line without State funding. I welcome what the Minister of State has said, which is that the overall URDF will increase for 2020 and that it is expected that large integrated multi-annual urban projects will comprise a greater element of future overall allocations. However, we have to look at where we came from. As the Minister of State said, we were ahead of the pack on this. Mr. Michael Walsh and Waterford City and County Council had plans in place. When considering the amount of money that was allocated, one has to look at the overall picture and at the catalyst the north quays will be for the whole south-east region. We look at the likes of Cork, Limerick and Galway, which are already doing very well. This absolute game changer of a project has to be recognised.

Some €13 million is required in 2019 to start the process and a commitment of €30 million is required for each of the years 2020, 2021 and 2022. Much of the infrastructure development that will be involved in this project would have had to come in the future anyway. What this project is doing is accelerating that hugely important infrastructure and increasing the connectivity between the north and the south of the city. Sustainable transport infrastructure is the essence of this project and development of this site can and will act as a catalyst for the city and county of Waterford. The employment opportunities, housing opportunities, and health opportunities cannot be underestimated. We are constantly talking about cardiac care in Waterford and about a university for the south east. This north quays development will act as a catalyst for all these things because it will lead to population growth and to Waterford and the south east acting as a release valve for the overcrowding in Dublin. To reiterate, in order to sign contracts and move forward, we need a timeframe, certainty, and commitment.

Damien English (Meath West, Fine Gael)
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Without a doubt, the north quays project will provide many opportunities for the city and region. It is a project of major significance. I compliment all involved in getting it this far. Together with the total amount of lifetime URDF grant funding sought, the proposal that came forward this time included four very significant elements of enabling infrastructure which are: relocation of the city’s railway station to the east to form a new public transport interchange, expected to cost approximately €35 million; a new bridge over the River Suir for pedestrians, cyclists, and public transport and an associated urban greenway, expected to cost more than €33 million; site access roads and road realignment, expected to cost €26.8 million; and off-site roads in the wider north bank of the Suir area in Kilkenny, which will cost approximately €10.3 million. I am constantly telling people in this room that there is also mention of Kilkenny in this plan. This project will serve the area very well. All of these infrastructural works will open up and make more accessible the north quays site, and will enable the special development zone planning scheme to be realised.

Further discussion with the local authority and other relevant agencies, such as the Department of Transport, Tourism and Sport and the National Transport Authority, is ongoing to conclude the grant agreement for 2019 in the context of a project lifetime commitment for future years, which has yet to be agreed, subject to necessary public spending code and state aid considerations. I can confirm that for approved category A projects, such as the Waterford north quays, subject to a grant agreement being entered into that will result in ongoing multi-annual contracts starting in 2019, there will be a commitment to the agreed Exchequer share of such contracts for future years. I also wish to confirm at this stage that there is priority commitment to funding in excess of €6 million for infrastructure to enable the mixed-use development of the Waterford north quays project.

Again I thank the Deputy for raising the issue of this project and I reiterate the Government's ongoing commitment to the future development of Waterford as one of Ireland's principal cities and as the regional growth driver for the south east. I cannot be any clearer on that. Today we are discussing one fund under Project Ireland 2040 but there are many other funds and many other ways of accessing money. It is important that the quays project looks at them all. I have no doubt that it will and that it will apply for funding in different areas. I am glad that we are able to kick-start the project with funding through this scheme, but there are many other ways to fund it including bringing private capital and money into the system. It is a great project and the Government is looking forward to working with the local authority on it. We are constantly engaging with Waterford City and County Council on this project.