Pool operator facing €10.25m VAT bill

Dublin Waterworld, which runs the National Aquatic Centre, is facing a VAT bill of €10.25 million after an arbitrator found against its claim that it had no such liability.

The loss of the case is a serious setback for the company, which is resisting moves in the High Court to have it removed as operator of the centre at Abbotstown, west Dublin.

The VAT liability is to Campus & Stadium Ireland Development (CSID), the State company that is seeking to cancel Dublin Waterworld's 30-year lease on the centre.

CSID is considered likely to seek an immediate payment of the VAT because it has already declared and paid the money to the Revenue.

The determination yesterday by arbitrator Dermot O'Brien could lead to financial pressure on Dublin Waterworld because the company has claimed in the High Court to be trading at a loss.

While Dublin Waterworld is registered for VAT, it would have to spend significant sums on ATt before it could recoup the €10.25 million it now owes to CSID.

Dublin Waterworld director Kieran Ruttledge said: "We have no comment to make other than that we are taking legal advice."

CSID chief executive Donagh Morgan said: "We welcome the arbitration findings."

The arbitration finding concludes one of three actions against Dublin Waterworld by CSID.

The High Court will hear CSID's case against the company for the non-payment of rents while the case in which CSID claims the company has failed to maintain the centre in proper order is the subject of a separate arbitration process.

The VAT liability arises from the lease that Dublin Waterworld signed with CSID in April 2003.

The VAT was calculated on the capital value of the lease in accordance with a valuation carried out for CSID by the Valuation Office.

This valuation was later verified by the Revenue.

The arbitration ruling comes amid claims this week that the swimming pool at the Aquatic Centre was leaking significant quantities of water.

But the construction group that built the centre, Rohcon, has linked such reports with the fact that Dublin Waterworld is defending an action for poor maintenance of the buildings.

"Rohcon also considers it significant that these media reports arrive at a time when CSID is engaged in legal proceedings against Dublin Waterworld for amongst other issues, poor maintenance of the building," it said.