Michael Ring (Mayo, Fine Gael)
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Question 364: To ask the Minister for Community, Rural and Gaeltacht Affairs when payment will be made to a person (details supplied) for land acquired for the construction of a cable car from Inisbiggle to mainland Mayo. [8969/05]

Michael Ring (Mayo, Fine Gael)
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Question 365: To ask the Minister for Community, Rural and Gaeltacht Affairs if Mayo County Council will proceed with the purchase of land on Inisbiggle for the construction of the cable car to mainland Mayo; if his Department will provide the necessary funding; and if they will proceed with the project at Inisbiggle in County Mayo. [8970/05]

Éamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 364 and 365 together.

In July 2000 I approved a grant of €1.84 million to Mayo County Council for the provision of a cable car and associated services between Inishbiggle and Achill island at Bullsmouth. This grant was based on a total estimated construction cost of €2.03 million with Mayo County Council to provide the balance of €190,000. It was estimated at the time that the running of the cable car service would require an annual subsidy from my Department of €72,375.

The construction of the cable car was scheduled to commence in 2002 and it was envisaged that the service would be fully operational by spring 2003. However, a delay was incurred as a result of an objection lodged with An Bord Pleanála against one of the compulsory purchase orders on the land required for the project. While An Bord Pleanála subsequently confirmed the compulsory purchase orders, this decision became in early 2003 the subject of an application for a High Court judicial review.

As a result of a settlement between Mayo County Council and the applicants, the application for a judicial review was withdrawn. Mayo County Council subsequently, in late October 2003, sought my Department's approval to proceed with the acquisition of land on the Achill side of Bullsmouth and the appointment of consultants to prepare contract documents for the project.

Mayo County Council has a compulsory purchase order which is operative on the aforementioned land. It has until 15 April 2005 to serve a notice to treat on this order, thus creating a contractual obligation on behalf of the council to purchase the land.

A contract has been entered into by Mayo County Council for the purchase of land and carrying out of other ancillary works on Inishbiggle for the project at a cost of €43,500.

In view of the time that had elapsed since this project was originally approved for funding I decided late last year that it would be appropriate in line with current guidelines and best practice in securing value for money for the Exchequer on capital expenditure to carry out a review of the 1999 report of the consultant engineers on the project.

Following that decision, the consultants, Malachy Walsh and Partners and McClure Watters, were in December 2004 appointed by my Department to carry out this review. A copy of the terms of reference for the review follows.

This review has now been completed and the consultants' report is being considered by my officials with a view to submitting appropriate recommendations to me at an early date. All outstanding issues, including the future of the project and the purchase of land, will be dealt with in the context of these recommendations and in consultation with interested parties, including Mayo County Council and the landowners concerned.