Council warned to get back to basics as tourism projects cause cash crisis

Donal Hickey

Tralee Town Council went to the brink of being dissolved by Environment Minister Martin Cullen in January because of its problems in adopting a budget for the year. Repayments on loans for tourism projects are proving to be a major burden to the council.

Local government auditor Grace Coakley has warned the council not to commit itself to outside projects, such as the E16 million Jeanie Johnston replica famine ship and the 1 million Blennerville windmill and steam train before careful evaluation.

“It is not in the council’s interest to get involved in outside projects operated by independent companies, where it accepts potential liability without power to participate in the control and management of the company,” Ms Coakley said in her statutory report to the council.

The council had invested E2.5 million in the famine ship, funded through a 15-year loan. At the end of last year, the steam train project owed the council E113,000 in wage costs. The council had also gone guarantor to the tune of E253,000 to the windmill company. Both are related tourist projects operated by limited companies, Ms Coakley’s report noted.

Councillors have been told a decision on the steam train is imminent, as the tourist season is already under way. However, the Department of the Environment had refused to sanction a E300,000 loan to allow the council clear the project’s debts.

“The train will not run as it stands. This council has no resources to run it,” town clerk John Breen said.

An application has now been made to the Department of Arts, Sport and Tourism for the money.

The council owns the land the train runs through and is in negotiations with the Tralee Aquadome company to possibly hand over the steam train project to it.

Cllr Tommy Foley said the steam train was never started to make profit, but to bring people to Tralee.

“It is a unique attraction but it must be made more attractive,” he remarked.

Also, Tralee Mayor Terry O’Brien asked the Jeanie Johnston company to bring the ship from Cork to Fenit, outside Tralee, for Easter. Its future remains uncertain, as negotiations about plans continue.