John O'Mahony (Mayo, Fine Gael)
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Question 179: To ask the Minister for Arts, Sport and Tourism when he will give authority to release funding to a club (details supplied) in County Mayo under the sports capital grant scheme 2006; and if he will make a statement on the matter. [24976/08]

Martin Cullen (Waterford, Fianna Fail)
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Under the Sports Capital Programme, which is administered by the Department, funding is allocated to sporting and community organisations at local, regional and national level throughout the country. The aim of the Programme is to maximise participation in sport through the provision of modern high quality, safe, well-designed and sustainable facilities and sports equipment. The provision of such facilities allows for increased numbers to participate in sport.

The position is that under the Sports Capital Programme, grantees in receipt of funding over a specified level must enter into a Deed of Covenant and Charge in order to protect the Minister's interest and ensure that the property remains in sporting use. To date, €290,790 has been allocated to this group in 2001, 2006 & 2007 under the Sports Capital Programme and a Deed of Covenant and Charge is currently being drafted to cover this amount. It is also the case that the grantees have taken out a loan and the bank in question has placed a legal charge on the grantee's property. The ranking of charges placed on a grantee's land is regulated by means of a Priority Agreement. In such situations it is my Department's established practice to seek a valuation of the lands in question from the grantees, so that it may determine whether the property may bear the burden of the combined charges.

In this instance, it is proposed that the bank's charge ranks first in priority. The valuation provided by the grantees, however, means that the combined value of the prospective bank loan and cumulative grant allocations is in excess of the current valuation. You will appreciate that serious consideration must be given to this matter and my Department will make every effort to progress these issues with the grantee's solicitors through the CSSO.