The High Court was asked yesterday to decide whether a company providing recreational facilities and amenities to the people of the Gorey and Courtown region of Co Wexford was entitled to be designated as a "charity" or, as the Revenue authorities claimed, was a commercial enterprise.
Judge Olive Buttimer of the Circuit Court asked the court for its opinion following dissatisfaction by the Revenue Commissioner of her findings in December 1998 that Gorey Courtown Forest Park Ltd was set up for charitable purposes only.
Judge Buttimer, in her statement to the High Court, said she found the company was limited by guarantee, not having a share capital. The objects of the company were to provide recreational facilities to the inhabitants of Gorey and Courtown and the creation of employment in the area.
The company was non-profit- making, with all the income being applied for the promotion of the main objects. If it was ever wound up the monies left would be transferred to an institution with similar objects.
Judge Buttimer said Mr Hedley Fleming, a director of the company, gave evidence that the company was set up in 1992 following a decline in tourism and growing unemployment. It bought 62 acres from Coillte adjacent to Courtown village. Funding was raised locally and from Wexford County Council. It was decided to create a forest park and build a waterworld facility.
To finance these developments it was decided that a number of holiday cottages would be built and sold. All the work done by the directors had been on a voluntary basis, except for one paid manager.
The company's directors, elected by the local community, were mostly local businesses and persons who, the local community felt, had the expertise and experience to get the project done. In 1998 the company had a debt of £12 million.
The Revenue Commissioners accepted that the company was set up for the best of motives but argued that was not sufficient to render it "charitable" in law. Creating employment by attracting tourists and running a leisure complex and gym were objects which were too wide to be charitable.
Fundamentally, the commissioners believed the facility was designed to boost tourism, was commercial and in that sense an industrial venture and not primarily providing recreational facilities for the poor of the area.
Judge Buttimer did not accept that the primary object of the company was to boost tourism. This was a scheme to tackle unemployment set up by businessmen and women who were not remunerated for their work.
The hearing continues today.