Extra funding for Cork event centre due ‘very soon’ says Michael McGrath 

There are suggestions that an additional €30m in state funding could be required.

Following Mr McGrath’s nomination to the EU Commission last week, and Simon Coveney’s decision to step down from Cabinet earlier this year, Tánaiste Micheál Martin is the last Cork-based senior cabinet member with a role in the decision on whether to approve additional funding for the long-stalled project, which had its sod turned in 2016 but where construction has yet to start.

Speaking at the opening of a new education centre in Fota Wildlife Park in Cork on Friday, Mr McGrath confirmed that a decision on the extra funding is imminent.

Extensive contact

“The file is still being actively managed,” he said.

“We have had extensive contact with Cork City Council because they have been the party doing the negotiations with Bam and Live Nation.

“It sits within the department of housing at the moment, at Government level.

“They have carried out their own due diligence and need to be satisfied in relation to certain aspects of the project and ensure it is fully compliant with all of the normal rules and procedures that you would expect.

“I am very confident that Government will make a decision very shortly.

“I do expect a decision in the next few weeks — I would anticipate in July.” 

Asked if any penalties could be applied to contractors who overrun on the time allocated for large state-funded capital projects, he said each contract is a standalone contractual arrangement.

“There are EU and national rules when it comes to procurement and there are circumstances where you are allowed to take into account track record, where track record has been demonstrably verified,” he said.

“That is a complex and quite a legalistic area.

“But in general, each contract is dealt with on its own terms.

“This arrangement involving Bam, Live Nation, Cork City Council and the Government is one that has developed over a long number of years.

“It is a complex arrangement.

Financial commitment

“There will, subject to a Government decision, need to be formal agreements entered into and signed, including with a very significant financial commitment.

“The government wants to see the project happen.

“We are very much supportive of it, but we have to ensure when you are spending public money that you do so in the proper manner.” 

It’s more than eight years since the sod was turned on the event centre site on the former Beamish and Crawford land on South Main St, just weeks before the 2016 general election.

Building work on the proposed 6,000-capacity venue has yet to start.

An initial €20m state aid package was on offer, but that has increased over the years to €57m by last year.

Following a detailed design process by Bam last year, Cork City Council prepared and submitted a detailed report for the department of housing on the additional costs required to build the venue.

Bam and Live Nation are also expected to increase their investment in the project.