Department of the Marine: The Comptroller and Auditor General has questioned the "unorthodox" manner in which the Department of the Marine issued grants for the construction of marinas without adequately assessing the projects.
Funding totalling €5.72 million was provided for the construction of marinas in Kenmare and Cahersiveen, Co Kerry, Roundstone, Co Galway, and Rosses Point, Co Sligo, in the 2000 Budget.
The then minister for the marine, communications and natural resources, Mr Frank Fahey, directed that the marinas be treated as priorities and processed outside the procedures provided for in the National Development Plan (NDP).
Following the decision to issue the grants, concern was expressed by Department officials at various stages relating to the viability, rising cost, or lack of proper appraisals of the marinas.
In the case of Kenmare marina, there was internal Department concern after the minister issued a letter to the promoter's financial advisers noting his agreement to grant aid the project in December 2000.
Officials said the letter constituted a letter of comfort that could be interpreted as creating unwarranted expectations and a possible basis for a future claim against the Department.
The report yesterday noted that the Department of Finance has long-established guidelines which stressed that the appraisal of expenditure proposals should guard against the danger of giving a project, when first mooted, a degree of premature commitment. The Kenmare marina was later mired in controversy after the buildings which formed part of the complex had to be knocked down after it was discovered they did not have planning permission.
The group behind the marina has told the Department that it intends to apply for more grant aid to rebuild the marina.
In the case of Roundstone and Rosses Point, both projects have yet to satisfy the Department's conditions for funding approval.
The Rosses Point project has not yet secured its foreshore lease, which is essential before funding approval can be given. The Roundstone plan is still under consideration as estimated costs for the project have increased. A revised business plan was submitted to the Department in May.
There was also concern expressed at plans to provide up to €2.8 million in grant aid for a marina at Cahersiveen, Co Kerry.
Officials questioned aspects of the project and did not initially sanction funding for the marina. The project was later scaled back and key issues addressed, which resulted in the minister approving grant aid in June 2001.
