McCreevy fast-tracked Kildare project funds

CHARLIE McCREEVY indicated his support for the building of an event centre in his Kildare heartland, using taxpayers money, before any application was made to the Government for funding.

Amid suggestions a deal was struck between the Minister for Finance and Minister for Agriculture Joe Walsh to fund the Punchestown project, the taxpayer’s watchdog said that proper guidelines were not followed in meeting the 15 million cost.

This month the venue hosts Santa’s Kingdom, though the money was granted to build a national agricultural and eventing exhibition and international show centre. In an affair that was described as a cowboy story, approval for the funding of the centre was fast-tracked through the Department of Agriculture and the Department of Finance three years ago even though the price rose from 6.9m to 14.8m.

But the letter from Punchestown applying for State funds says a meeting was held with the Mr McCreevy and also that the developers were advised to forward the plans to Mr Walsh for his consideration. Within less than two months, including the Christmas break, Mr Walsh approved the 100% funding of 6.9m for the construction costs and Mr McCreevy acceded to the request in just seven days. When the non-profit making Punchestown trust came back with a bigger plan requiring 12.8m eight weeks later, it was agreed to in a similarly brief time period, and a further 1.5m was granted the following year.

As Minister for Finance, Mr McCreevy, often described as a friend of the equine industry, has slashed betting tax rates for betting and refused to halt tax breaks worth billions for the horse-breeders despite criticism.

Outlining his criticisms of the project’s funding of the project at the Public Accounts Committee yesterday, Comptroller and Auditor General John Purcell said the fact the scale of the development changed soon after its initial approval lent weight to his concerns.

“Normally this would set alarm bells ringing in both departments, but in this case it was more akin to pushing an open door,” he said.

Fianna Fáil TD Seán Ardagh said the affair sounded like a good wild west story while Labour Party leader Pat Rabbitte asked if the funding of the project was agreed by the ministers at the races.

Fine Gael TD Michael Noonan said he had never seen a project granted funding so quickly.

Yesterday, Mr McCreevy defended the decision and said the centre was of benefit to both people in the immediate hinterland and the whole country. It is used for many events, he said.