Written answers

Tuesday, 9 June 2009

Department of Community, Rural and Gaeltacht Affairs

Decentralisation Programme

8:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 442: To ask the Minister for Community, Rural and Gaeltacht Affairs the position with regard to the decentralisation of his Department to Charlestown County Mayo; the amount that has been spent to date on temporary accommodation for the staff transferring; if funding has been committed and confirmed by the Department of Finance for the purchase of the property; and if he will make a statement on the matter. [22406/09]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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As the Deputy will be aware, under the Decentralisation Programme it has been agreed that the headquarters of my Department will relocate to Charlestown, County Mayo. The programme is well advanced in my Department. From a total of 140 staff due to decentralise, 100 have now relocated to an interim location in Tubbercurry, County Sligo, where two properties are being leased by the OPW to accommodate the staff concerned. I understand from the OPW that the cost of leasing both properties in Tubbercurry is just under €175,000 per year, while fit-out costs to date for both buildings have amounted to some €402,000. In relation to the acquisition of a permanent site for my Department's headquarters at Charlestown, I am advised that the OPW is liaising with the Department of Finance on the purchase of such a site, including the commitment of funding in this regard.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 443: To ask the Minister for Community, Rural and Gaeltacht Affairs when his Department was first approached with regard to the possibility of an alternative decentralisation site in Kiltimagh, County Mayo; if the property developer who approached his Department has ever received funds from his Department in the context of schemes under the scope of his Department's remit; and if he will make a statement on the matter. [22408/09]

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 444: To ask the Minister for Community, Rural and Gaeltacht Affairs if the site identified as a possible decentralisation location in Kiltimagh, County Mayo is owned by a company previously funded by his Department; if his Department has had dealings with the construction of this building or a leasing agreement with the owners or occupiers of this building; and if he will make a statement on the matter. [22409/09]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 443 and 444 together.

I can confirm to the Deputy that IRD Kiltimagh Limited, and its wholly owned subsidiary, Cairn International Trade Centre Limited, wrote to my Department in July 2008 offering accommodation and workspace at the Cairn International Trade Centre, Kiltimagh, County Mayo, which was being developed at the time. My Department was again approached in April 2009 in relation to this matter. I am arranging to have copies of both letters forwarded directly to the Deputy for his information. I should add that IRD Kiltimagh Limited approached the Minister for Finance on the matter in April. These approaches were made in the context of the proposed relocation of my Department's headquarters to County Mayo under the Decentralisation Programme.

In relation to the provision of funding from my Department to the property developer in this case, I understand that IRD Kiltimagh Limited acted as the agent of the Western Rural Development Company, which was the entity previously contracted by my Department to administer the LEADER programmes and Rural Social Scheme in East Mayo and to which my Department provided funding in the normal way for those purposes. Following the cohesion process, these contracts are now held by Mayo North East LEADER Partnership Teo.

In relation to the issue of funding from within the ambit of my Department for the development at Cairn International Trade Centre, I understand that IRD Kiltimagh Limited approved two grants under the LEADER+ programme 2000-2006 of €12,000 and €9,675 respectively towards a feasibility study and marketing project in respect of the property concerned. I am advised that the Western Development Commission approved a loan of €1 million to IRD Kiltimagh Limited towards the construction of Cairn International Trade Centre. This loan is repayable in 2013. I am further advised that, as security on this loan, the commission has a first charge on certain assets of IRD Kiltimagh Limited.

In relation to the construction of the building, I understand that the commission's conditions that were attached to the loan required, inter alia, that a fixed price contract be put in place for the construction of the building to guard against cost overruns and to protect their investment. I can confirm that my Department has had no direct dealings with the construction of this building nor has it entered into any leasing agreement with the owners or occupiers of the building. As I previously informed the House, it was decided that the OPW should examine the property in question on foot of the approach made to the Department of Finance regarding the turn-key potential of the building. I emphasise again that this is a prudent response on the part of the OPW and implies no decision.

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