TAOISEACH BRIAN Cowen has said the Government would consider how to proceed with a regeneration plan for Limerick when it received a report on the project shortly.
Minister for Defence Willie O’Dea confirmed at the weekend the Government would not be able to deliver the €1.7 billion it had previously ear-marked for the city.
Private sector involvement would be looked at “in due course”, Mr Cowen said yesterday.
“There’s been €50 million already allocated to it; there’s another €25 million this year; and obviously looking to private sector involvement in due course.
“We’re awaiting the phase one implementation plan from the regeneration agency some time in the first quarter of this year, and obviously Government can consider how we proceed with it from there,” he said.
“It’s a project that’s quite extensive and comprehensive, and as I say phase one of the implementation plan will be with us shortly and we’ll take it from there; see how we proceed.”
Brendan Kenny, chief executive of Limerick Regeneration, the State agency given the task of developing the project, said a clear signal was needed from Government that the physical element of regeneration in parts of Limerick city could begin.
The plan envisaged demolishing up to 2,500 houses, creating two new town centres and breaking the so-called “cycle of disadvantage” in the city by regenerating four estates – Moyross, Ballinacurra Weston, South Hill and St Mary’s Park.
Limerick Regeneration held talks with officials at the Department of the Environment last week aimed at agreeing incentive schemes to attract private investment.
However, Mr Kenny yesterday said the reality was it would be very difficult to attract private-sector investment. Speaking on RTÉ Radio One's Morning Irelandprogramme, he said he was optimistic work would begin on some houses this year, although none would be completed.
The funding allocation of €25 million for 2010 was “slightly up” on 2009, Mr Kenny said, but warned “to really kick-start particularly the physical side of regeneration we would need more money than 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”. There was “a huge lack of morale” among people living in the regeneration areas, adding “what people have seen effectively is destruction and no construction”.
Limerick East Labour TD Jan O’Sullivan said there was mounting anger at Government throughout Limerick.
Mr O’Dea had admitted what the rest of the Coalition “haven’t had the guts to say directly to the people of Limerick; that funding for regeneration will not be delivered”.
“People are fed up of listening to inaccurate, half-baked promises from our local Ministers, and instead want some form of definitive action and commitment from Government.”
Ms O’Sullivan said the planned regeneration of housing estates would have provided a massive stimulus for the local economy through construction.