Kieran O'Donnell (Limerick City, Fine Gael)
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I thank the Leas-Cheann Comhairle for facilitating me in bringing up this important issue. King John's Castle is synonymous with Limerick city. If one looks at items in the media, the first place one sees and thinks of is King John's Castle. It has been part of the Shannon Group for many years and prior to that it was within the Shannon Development Group. An agreement has been reached between the Shannon Group and Limerick City and County Council that King John's Castle will be transferred to Limerick City and County Council, effective from next Monday, 4 April. I know many of the staff working there and they are excellent. It has been agreed that a full transfer will be undertaken so that all of the 14 staff working there, along with part-time staff during the summer months, will automatically transfer. They are going into a wholly owned subsidiary of Limerick City and County Council, Discover Limerick, which is a designated activity company, DAC.

Limerick City and County Council has submitted a proposal, via the Shannon Group, to the Department on a funding gap for the first three years to enable it to have a smooth transition. The Minister of State, Deputy Naughton, will be aware that the site had 111,000 tourists visiting it back in 2019. Two years ago that had dropped to 50,000 and last year it was down to 24,000. We want to put King John's Castle in a financial position such that it can come back to those numbers. Limerick City and County Council has put this proposal to the Minister of State's Department via the Shannon Group and directly to the Department of Housing, Local Government and Heritage. Already Limerick City and County Council looks forward to taking over the running of King John’s Castle, along with its employees. It has put €500,000 into Discover Limerick DAC, which will be looking after all tourist activities. That company is responsible for the management and operation of King John’s Castle but with the move over, items that would have been dealt with under the Shannon Group such as IT systems; financial and human resources; marketing and sales; and legal issues will all have to be dealt with by Limerick City and County Council. These issues will have major set-up costs. Furthermore, Limerick City and County Council has already put a financial controller in place and is advertising for a sales and marketing official as well.

I want the Minister of State to provide a commitment from the Government. I understand that discussions are ongoing between Limerick City and County Council and the Departments. I want to see a commitment from the Government that whatever funding is required to enable that smooth transition will be forthcoming. However, the good news is that King John’s Castle is already operating seven days a week and come 4 April, next Monday, Limerick City and County Council will continue to operate it on a seven-day per week basis with the 14 employees and the summer workers who will come on board. Limerick City and County Council is looking to grow the business there but we need initial Government support over the first year to ensure we can get to a point where King John’s Castle is performing at a premium and gets to that figure of 111,000 tourists per annum and much higher.

Hildegarde Naughton (Galway West, Fine Gael)
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I thank Deputy O’Donnell for giving me the opportunity to update the House on this topic. As Members are aware, Shannon Group informed my Department in summer 2020 that it was necessary to consider a comprehensive and radical adjustment to its structure. This was necessary due to the capital investment required to maintain the heritage sites and the lack of expertise in maintaining the sites in the group. This was further impacted by the onset of Covid-19. In 2021 several options were presented in a memorandum for Government, and the Government considered that the most appropriate option was for Shannon Group to explore the potential to transfer Shannon Heritage to the local authorities. It was considered that this was the best way to secure the longer term viability of the business and the interests of Shannon Heritage employees, while maintaining the intrinsic heritage value of the sites for current and future generations. Since that time Shannon Group has engaged and is continuing to engage with the relevant local authorities in regard to the transfer of the business of these key sites. This includes the transfer of King John's Castle to Limerick City and County Council. The agreement of the Minister for Public Expenditure and Reform and the Minister for Housing, Local Government and Heritage will be required to execute the transfer of the castle. My Department is engaging with both Departments in this regard.

I am also continuing to engage with the Office of Public Works, OPW, and the Department of Housing, Local Government and Heritage in regard to the conservation of the castle. As the castle is a national monument, the OPW has responsibilities in regard to its conservation and maintenance. In preparation for undertaking this role, the OPW has been carrying out the necessary assessment of the castle to inform the programme of works needed and the associated costs. Shannon Group will continue to operate and manage the Shannon Heritage business prior to any transfer of King John's Castle to Limerick City and County Council. It will do so in line with its commercial mandate and fiduciary best practice, and with awareness of the group's accountability for the proper management of the company.

This Government implemented a range of horizontal economy-wide supports early in the Covid-19 pandemic. Shannon Heritage has benefited from these supports including the employment wage subsidy scheme, EWSS. The continuation of Government support to Shannon Group through the subsequent extension of EWSS enabled King John's Castle to remain open during the winter of 2021, and into the spring of this year. Although the castle operated with reduced opening hours during this time, EWSS support meant that Shannon Group did not have to close the castle completely in September 2021 for the winter season as had been previously indicated.

As we all know, Covid-19 has had a huge impact on all tourism and heritage sites since the beginning of the pandemic. However, there are grounds for optimism, as the Deputy highlighted, including a welcome increase in visitor numbers. I understand King John's Castle is currently open on a seven-day week basis, as the Deputy stated. My Department will continue to work with Shannon Group and the relevant Departments to ensure the transfer of King John's Castle will proceed as planned, placing it in a positive position to benefit from increased visitor numbers.

The Deputy made reference to the deadline of 4 April. I assure him there is ongoing engagement between my Department, the Department of Transport, and the Department of Housing, Local Government and Heritage around that funding gap and there are meetings. We have asked the Department of Housing, Local Government and Heritage to engage with us to see what we can do to try to bridge that funding gap. Officials from my Department are meeting with their counterparts in the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media today. We have had previous meetings. Fáilte Ireland will be present at that meeting in regard to looking at other funding sources. The priority is to ensure that this transfer proceeds as quickly as possible and that King John's Castle has the required funding to be viable into the future. The Deputy has my sincere commitment on that.

Kieran O'Donnell (Limerick City, Fine Gael)
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I thank the Minister of State for that positive update. I welcome the fact that the OPW is taking care of the structural repairs on King John's Castle. I welcome the fact that it is formally coming under the guardianship of Limerick City and County Council. As the Minister of State is aware, Limerick City and County Council had Grant Thornton prepare a funding gap report which she referenced. I very much welcome that detailed discussions are taking place, spearheaded by her Department, involving the Departments of Housing, Local Government and Heritage and Tourism, Culture, Arts, Gaeltacht, Sport and Media. This has to happen. I pay tribute to Limerick City and County Council which has been proactive on this. It has put €500,000 of its money into a company, Discover Limerick, which is 100% owned within Limerick City and County Council, to ensure this transition can take place from next Monday, 4 April.

What we now want is to ensure that arrangements are put in place to bridge whatever funding gap is there for the first three years. I welcome the Minister of State's assurances in that regard. I know there are ongoing discussions. These are constructive discussions. My role here today is to ensure that momentum continues. I want to see that King John's Castle can now grow further. There were 111,000 people coming through the gates annually, which is a huge number. I think that is only the start. The fact that we now have an opportunity and Limerick City and County Council is preparing, through Discover Limerick, a strategic plan for growing tourism in Limerick city involving King John's Castle is something I very much welcome. I look forward to a conclusion of the discussions so that we have absolute certainty. Finally, I compliment the 14 staff. I know them, they are excellent, and they will bring a wealth of experience to Limerick City and County Council about King John's Castle.

Hildegarde Naughton (Galway West, Fine Gael)
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I reiterate that the Government recognises the importance of King John's Castle to the people of Limerick and also to the mid-west region. I too want to compliment Limerick City and County Council for its endeavours and goodwill in regard to the engagement. Work is ongoing between my Department and the Department of Housing, Local Government and Heritage around that funding gap. We are doing everything we can to ensure that happens as quickly as possible. As I said, we are engaging today with the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media around possible funding sources there as well. The Deputy can be assured that this is a high priority. It is moving in the right direction. My Department is working with Government colleagues to ensure this progresses. I would be happy to provide an update as we get that over the line.