Taoiseach defends the funding of event centre

The Taoiseach, Mr Ahern, yesterday defended the €14.8 million State funding of the Punchestown agricultural event centre in the Kildare constituency of the Minister for Finance, Mr McCreevy.

Mr Ahern said the Comptroller and Auditor General had said the proper tender procedures were observed relating to the placing of contracts and the Department of Finance had proper controls in place regarding the processing and payment claims, site inspections and administrative checks.

"However, he expressed concern as to the adequacy of the valuation in the form of an agreement and stated that, in view of the reservations with regard to deficiencies in the form of the agreement, the relevant papers are being examined by the legal services unit of the Department for legal consideration as to whether a new agreement is necessary."

Mr Ahern said that the Punchestown organisation was a non-profit trust. "Although I am not familiar with the deed of trust, I understand that a number of reputable people from different walks of agricultural life are involved in that trust.

"Part of the requirement for a national centre was to move elements of agricultural exhibitions away from the Royal Dublin Society to a suitable alternative location. It did not relate only to equestrian events but also to agriculture." Earlier, the Fine Gael leader, Mr Enda Kenny, asked if the Taoiseach condoned and stood over the "secret deal" relating to facilities in Punchestown where almost €15 million had been approved between the Ministers for Finance and Agriculture in the Minister's own constituency.

"Is the Taoiseach actually aware that this deal was approved for a 100 per cent grant within seven days, that the cost doubled and was subsequently approved within 14 days.

"Is the Taoiseach aware that there was no cost-benefit analysis carried out in this, that the Department of Finance guidelines were not followed, that no independent technical advice was sought in regard to running costs or long-term benefit; no research was conducted on the need for such a facility; no other potential providers were asked for their views of expressions of interest; and it was never referred to the legal advisers in the Departments of Finance and Agriculture." Mr Ahern said the project had been discussed by a select Oireachtas committee on June 7th, 2000.

The Moriarty Tribunal has cost more than €14 million since it was established six years ago, according to information released by the Taoiseach.

The rates of pay for senior counsel are €2,500 a day and € 2,000 for junior counsel, according to Mr Ahern.