Delay sees €1.4m lost in salaries each month

WATERFORD is losing out on almost €1.4 million in salaries monthly because of a planning delay in relation to a proposed construction project in the city.

That is according to the backers of the €280m Newgate Centre, which they say would create 420 jobs during the building phase.

The project was granted planning permission over 15 months ago by the city council but has been on appeal with An Bord Pleanála since then.

KRM Construction Partnership’s blueprint for a 5.2 acre site in the city centre features more than 50 outlets including three anchor units, a 107-bedroom hotel with conference centre and leisure facilities, along with arts, cultural and community amenities, underground parking for 600 vehicles and 28 homes.

Among the opponents of the scheme are the Waterford Council of Trade Unions, the Waterford Alliance for Sustainable Inner City Development, the Patrick Street and Stephen’s Street Traders’ Group and Green Party member Brendan McCann.

A decision from the appeals board is thought to be “imminent”.

The site bordering Michael Street, New Street, Stephen Street and Brown’s Lane has been assembled over a number of years by south-east businessmen Dan Kickham and Ciaran Redmond.

According to KRM chief executive Paul Miskella, the original intention was to go on site in September of last year. “Had planning appeals not prevented us doing so, our best estimate is that there would be 420 people working on the site.”

Speaking at a Waterford Chamber conference, he quoted Central Statistics Office (CSO) data showing the average weekly income in the construction industry of €817.41 — the equivalent of almost €1.4m per month if 420 employees were on-site. “So that’s what is not being paid out to local workers and Revenue as we await the outcome to the planning appeals process which we now expect later this month,” he said.

CSO figures indicate an increase of 2,895 in the number of people on the live register in Waterford during the 12 months from September of 2007 and September just gone.

“In that 12 months,” said Mr Miskella, “practically every major employer in the city and county reduced their head count with flagship companies like Waterford Stanley, Honeywell, Bausch & Lomb, ABB Transformers, Aventis, and Waterford Crystal all seeing job losses.”

He said his comments did not represent an attack on the planning appeals process or An Bord Pleanála, but a “factual setting out” of the situation with this particular development.

“There is very considerable research and anecdotal evidence of continuing leakage of retail spending from Waterford to other urban centres. This will only accelerate as the road network linking Waterford and other cities continues to improve dramatically and consumers search for better value and greater choice,” said Mr Miskella.