The Government hopes that the National Aquatic Centre will remain open, Taoiseach Bertie Ahern told the Dáil.
"It will have to find a new way of functioning. My preference is that would be done by Campus and Stadium Ireland Development Ltd. That is an option, but perhaps other options may have to be looked at."
He was responding to Tuesday's High Court order for possession of the €62 million centre because of "wilful" breaches of the lease for its operation by Dublin Waterworld Ltd and Limerick businessman Pat Mulcair, including failure to pay more than €11 million due in rent and VAT.
Mr Ahern noted that Mr Justice Paul Gilligan held with Campus and Stadium Ireland Development Ltd on all counts.
"He found that Dublin Waterworld Ltd had wilfully declined to honour its obligations pursuant to the lease of April 30th, 2003. Accordingly, he declined to grant relief against the forfeiture and the case will come before Mr Justice Gilligan again next week for finalising of the order. Therefore, I do not wish to make any comment on that."
The defendants then had 21 days to lodge an appeal. "Campus and Stadium Ireland Development Ltd's position is that the centre will remain open to the public. Contingency plans to ensure the centre continues to operate as normal have been prepared in the event that the appeal is not taken. Hopefully, we can move on."
Labour leader Pat Rabbitte said the Government had made a decision in 2000 to build an aquatic centre in preparation for, among other things, the Special Olympics at an estimated cost of €30 million.
"However, it came in at €62 million. The trio of directors were the Taoiseach, the Minister for Finance and the Minister for Arts, Sport and Tourism, Deputy O'Donoghue, who decided to award a 30-year lease in the property worth €62 million to Dublin Waterworld Ltd.
"This turned out to be a shelf company with a share capital of €127 and no assets. When the judge was confronted with this, he said that to transfer a lease to a company with a share capital of €127 and no assets was truly astonishing.
"Dublin Waterworld Ltd then secretly transferred the lease to a Fianna Fáil businessman, Pat Mulcair, in what was described in court as a 'tax-driven deal' that allowed him €2.8 million in capital allowances per annum."
Mr Ahern said: "Deputy Rabbitte is incorrect as decisions were made by Campus and Stadium Ireland Development Ltd, not by the three people he mentioned. The third issue is that he had the wrong party for Mr Mulcair. The deputy will have to look elsewhere in the House for his allegiance."
The Taoiseach insisted that the centre was world class as defined by everybody who had used it in European and international competitions and as declared by those who used it during the Special Olympics.
Mr Rabbitte asked how he could say that with a straight face, given that the roof had blown off in January. "The Taoiseach told the House it was because of the storm. In fact, it was established that it was because of a structural defect. Now it is alleged that the pool is leaking."
Mr Ahern said the case had been brought by Campus and Stadium Ireland Ltd, supported strongly by the Minister. "The deputy asked why the company broke its lease and got to this position in the first place. It was because the judgment of Campus and Stadium Ireland Development Ltd was to give it to that company on a tendered basis. It did that."
When Mr Rabbitte suggested that "the three of you would hand in your resignations if you were private directors", Mr Ahern said that the Labour leader was always wise after the event.
