Fahey under fire over abandoned marina scheme

FORMER Marine Minister Frank Fahey faced a storm of criticism yesterday following a damning report by the Dáil’s financial watchdog on an abandoned €6 million scheme to build four marinas.

The Public Accounts Committee (PAC) found the four projects singled out for grant-aid were “approved under ministerial direction” by Mr Fahey and were not subject to normal departmental guidelines. Dubbed ‘Punchestown on Sea’ after the controversial jumping centre at the Kildare race-track, the grant aid of 6m was earmarked for projects in Kenmare, Co Kerry; in Cahirciveen, Co Kerry, in Roundstone, Co Galway and in Rosses Point, Co Sligo.

But Mr Fahey robustly defended the decision, saying all four were subject to “rigorous” evaluation.

Speaking from New York, he said the PAC report was based on the evidence of the current Secretary General of the Dept of Communications Brendan Tuohy. “I refute what was said by (Mr Tuohy),” he said. “I do not accept the line given by him to the PAC.”

Of the four, the Kenmare marina was most controversial. It was approved as part of a deal brokered with independent TD Jackie Healy Rae in which Taoiseach Bertie Ahern and his project manager Gerry Hickey also got personally involved.

The developer Danny McCarthy was paid over €330,000 as a first grant but following issues over compliance with planning permission, the payments were stopped. No further payments were made.

The department was already developing its own marine tourism grant scheme at the time but that was dropped. But according to PAC chairman Michael Noonan (FG), the scheme was over-ridden by Mr Fahey who directed that these four projects be prioritised.

The report recognises the political role of ministers but also stresses their responsibilities to adhere to best practices.

For the Kenmare project, it notes Mr Fahey “made a decision on the overall viability of the project despite the reservations of (his officials)”. It also suggests private individuals and interests benefited as a result of the grants paid in addition to the public at large.

Of the other projects, the Caherciveen marina has 93 berths and is the only one fully operational. It received €2.5m of its total €3.5m costs in grants but there are questions over its future.

Mr Noonan said yesterday: “The results of a study in 2005 indicates the marina is in a precarious financial position which is not sustainable in the long term.”

The Roundstone project ran into problems and has not yet been built. The Rosses Point project was abandoned in September 2006.

But Mr Fahey said last night the Cahirciveen marina was highly successful and Roundstone was about to get the go-ahead. He said as minister he ensured the department was development-led but it had become excessively regulatory after he left in 2002.

“It is of interest that there was no marine tourism measure under the National Development Plan since I left the Department in 2002.

“The success of the two projects completed and the final approval of Roundstone would not have happened without this funding,” he said.