A claim that 45 charities using a centre in Dublin would be homeless through lack of funds was described yesterday as nonsense by Minister of State Mr Noel Ahern.
The Minister blamed top-heavy bureaucracy as the problem at the Carmichael Centre in Dublin, which has stated it will close due to lack of Government funding.
The building is owned by the State which also provides nearly 30 staff under FÁS schemes.
The centre said it needed €150,000 from the Department of Community, Rural and Gaeltacht Affairs to help run the services.
It has threatened all FÁS staff plus nine administration staff with redundancy on July 9th, and said the charities would be homeless.
The centre's CEO, Ms Kate O'Sullivan, while rejecting the Minister's statements, said she would be happy to take him up on an offer for talks.
Yesterday, in an interview with The Irish Times, Mr Ahern said the centre had to look at its revenue and expenditure and get the two into line. "But putting the frighteners out that the building is going to close and that the groups that are there are going to be made homeless - that's nonsense," he said.
The centre had a free building and 30 people on social economy or social employment schemes paid by FÁS, he said.
The centre provided office space or secretarial services for a number of charities and groups.
"The charities are doing great work. The funding to those groups is not at all affected," Mr Ahern said.
The centre said its income was €603,653, which mainly comes from State grants. The cost of running the building, however, was €824,354 a year, which included €359,000 per year for nine management salaries not paid for by the State.
"These operating costs are extraordinarily high by comparison with norms for the sector, or the normal commercial costs of managing a premises," he said.
These costs were unconnected with the funding and budgets of the organisations housed there.
The board was made up of its own members who did not charge for rent. They could charge a minimal rent, he suggested.
"At the same time they have an over-heavy bureaucracy of management staff that really isn't necessary," Mr Ahern said.
The Department of Health had indicated it would give €150,000. Mr Ahern said the centre received €40,000 a year from his Department and would not be giving €150,000.