A clear signal is needed from government that the physical element of regeneration in parts of Limerick city can start, Brendan Kenny, chief executive of Limerick Regeneration said today.
Last week, the government said it would not be able to deliver the €1.7 billion it promised for the regeneration of Limerick. The plan envisaged demolishing up to 2,500 houses, creating two new town centres and breaking the "cycle of disadvantage" in the city, by regenerating four estates – Moyross, Ballinacurra Weston, South Hill and St Mary's Park.
However, speaking on RTÉ's Morning Ireland earlier today, Mr Kenny he was optimistic some houses would be started on this year, even though none would be completed.
The funding allocation of €25 million for 2010 was "slightly up" on 2009, he said, but warned "to really kickstart particularly the physical side of regeneration we would need more money that that".
Fine Gael Limerick East TD Kieran O'Donnell said "there needs to be a commitment from government that they will provide the capital funding that is needed".
Mr O'Donnell said there was "a huge lack of morale" amongst people living in the regeneration areas, adding "what people have seen effectively is destruction and no construction".
Limerick Regeneration, the State agency tasked with developing the project, held talks with officials at the Department of Environment last week aimed at agreeing incentive schemes to attract private investment.
However, Mr Kenny today said the reality was it would be very difficult to attract private-sector investment.