Joan Burton (Dublin West, Labour)
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Question 193: To ask the Minister for Arts, Sport and Tourism if his attention has been drawn to a recent court case concerning companies (details supplied) in which evidence was given of arrangements in respect of the National Aquatic Centre which disclosed leasing or sub-leasing arrangements resulting in the creation of valuable tax allowances for a person; the estimated cost of such allowances; the way in which such tax allowances could arise in view of the fact that the State financed the development costs in full of the National Aquatic Centre via a company; and if he will make a statement on the matter. [12429/06]

John O'Donoghue (Kerry South, Fianna Fail)
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Campus and Stadium Ireland Development Limited, CSID, the limited company established to develop the site at Abbotstown and Dublin Waterworld Limited, DWW, formally signed a lease for a 30 year period to operate the National Aquatic Centre in March 2003. However, CSID was obliged to take legal action against DWW and sought forfeiture of the lease by DWW on the grounds of significant and repeated breaches of the terms of the lease. When the court proceedings commenced, it emerged that DWW had assigned its right to the lease of the centre to a named businessman. This was in direct contravention of the terms of the lease, which prohibited any assignment of the lease without the formal consent of CSID.

As the Deputy is aware, the court delivered its judgment on 21 March and found in favour of CSID on all counts and declined to grant relief against forfeiture of the lease to DWW. The matter will be subject to an order of the court this week.

The tax benefits and arrangements which, according to what emerged in court, were availed of by the named businessman are not matters in which my Department has expertise or auspices. It is a matter for the Revenue Commissioners and I am sure they will be examining the court proceedings in this context.

It is a matter of record that the development of the National Aquatic Centre was carried out by means of a DBFOM process — that is the design, build, financing, operation and maintenance of the centre would be carried out by one consortium of companies. The development contract was awarded to the Waterworld consortium consisting of Rohcon, Dublin Waterworld Limited and Waterworld (UK), aquatic and leisure centre operators.

Jack Wall (Kildare South, Labour)
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Question 194: To ask the Minister for Arts, Sport and Tourism the mechanism used by his Department in dealing with the problems attached to the National Aquatic Centre; his proposals in regard to the centre going forward; and if he will make a statement on the matter. [12447/06]

John O'Donoghue (Kerry South, Fianna Fail)
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Campus and Stadium Ireland Development Limited, CSID, is the body charged with development of the campus at Abbotstown, including the National Aquatic Centre. Since the construction of the centre was completed, CSID's responsibilities have been those of a landlord of the centre. A commercial company, Dublin Waterworld, DWW, held a lease to operate the National Aquatic Centre and therefore the day to day operational matters at the centre, including any operational problems, were the responsibility of DWW.

As the Deputy may be aware, a judgment was delivered in the High Court in relation to the lease of the National Aquatic Centre by DWW on Tuesday, 21 March. CSID had sought forfeiture of the lease by DWW on the grounds of significant and repeated breaches of the terms of the lease. The court found in favour of CSID on all counts and declined to grant relief against forfeiture of the lease to Dublin Waterworld Limited. I fully supported CSID in taking the court case but there are constraints in terms of commenting on the issue as the judicial process has not yet been finalised and the judgment is due to be perfected on Wednesday, 29 March. CSID stand ready to put in place contingency arrangements to ensure that the National Aquatic Centre will remain fully operational; that those working in the centre have the option of retaining their jobs; and that the centre continues to provide excellent swimming and leisure facilities for the public.