Charlie and Joe should be made to answer to a steward’s inquiry

WHEN it comes to political influence, the honest-to-god Irish taxpayer is simply not at the races.

The stroke pulled by Charlie McCreevy and Joe Walsh in relation to the Punchestown project would warrant a steward's inquiry, if not a full-blown investigation by the Turf Club, but then that organisation obviously has higher standards than those of our cabinet.

The arrogance displayed by the ministers for finance and agriculture in presenting almost €15 million to Punchestown racecourse defies even the level of arrogance we have become used to from this so-called government.

Incredibly, when the Department of Agriculture wrote to the European Commission seeking their approval, they argued that the €15 million gift to Punchestown should not be considered State aid.

Please, somebody explain to those of us too dense to understand, how giving €15 million to a private enterprise out of the taxpayers' pocket is not state aid.

Even more incredibly, the eejits in Brussels fell for it!

Interesting, is it not, that Agriculture Minister Joe Walsh felt they had to get approval from Brussels, but not from our own Government? Incredible, is it not, that Finance Minister Charlie McCreevy waved it through?

When it comes to the bloodstock industry it seems that the normal rules do not apply. Despite mutterings last year that they would come into the tax net, wealthy breeders still have a completely free rein as far as the minister for finance is concerned.

Unless he has the gumption to dip into their deep pockets in this year's budget, the horsey set will continue to enjoy fabulously wealthy lifestyles without paying one cent towards the running of this country and the provision of crucial services. When you consider how many voluntary organisations provide services which should be the responsibility of Government, and how hard they must fight for any kind of grant, Punchestown got its money with ludicrous ease.

According to the report from the Comptroller and Auditor General (CAG), John Purcell, in November, 1999, Mr Walsh received a proposal from the trustees and executives of Punchestown racecourse seeking funding for a development project. It comprised an indoor exhibition facility, an entrance complex, a new stabling block, as well as additional car parking and landscaping.

Punchestown indicated that on the basis of an exercise carried out by their own quantity surveyors, costs would be €6.9 million, but the gentlemen of the turf had the good grace not to mention the level of state support they expected.

It was a "we'll leave it up to yourself" kind of approach.

Now, a nod is as good as a wink to a blind horse, and the departmental officials recommended to the minister that funding of €6.9 million should be given to Punchestown, representing 100% of the anticipated construction costs.

Being a model minister, Mr Walsh took the advice of his officials and accepted the recommendation. That was January, 20, 2002, and he sent the ball out to the wing where Mr McCreevy was ready to receive it. Within just one week Mr McCreevy acceded to the request, so by January 27 Punchestown had its €6.9 million. It was as easy as that.

Ask and you shall receive when you have powerful friends in government.

And with such influential friends, there was no problem when the gentlemen at Punchestown decided on changes to the project which pushed the cost up to €12.8m.

The old formula worked again. They wrote to Joe on June 2, 2002, advising him of the cashflow difficulty, and by June 23, he agreed. Joe wrote to his old buddy Charlie who said 'no prob,' and Punchestown had its extra €6.4m.

Between one thing and another they got €1.5m more, which brought the state funding of this private venture to €14.8m.

Straightforward, no messing, no red tape when it comes to looking after the financial welfare of the equine industry.

The comptroller and auditor general expressed concerns in relation to the evaluation of the project, centring on whether it had been comprehensively evaluated from a cost/benefit viewpoint prior to its approval.

In particular he was concerned whether it met the criteria set down in the guidelines issued by the department of finance for the evaluation of major capital projects.

"The fact that the scale of the development changed soon after its initial approval lent weight to my concerns," he said in his report

He seems to be the only person in officialdom who was concerned.

TAOISEACH Bertie Ahern, in one of his usual in-depth statements, declared that the Government was not embarrassed by this scandal. Tánaiste Mary Harney issued an inane statement to the effect that maybe they should have sought a business plan for the project and that the proper guidelines should have been observed. But sure it's done now and we should learn a lesson from it. Such sentiments from the leader and deputy leader of the Government must finally prove, if proof were needed, that we have an off-the-wall, out- of-touch shower running the country who should be in a home for the bewildered.

Now the world knows of Mr McCreevy's affinity with horseracing and that Joe Walsh enjoys a day out as well among that fraternity.

But in looking after Punchestown, Joe Walsh had an each-way bet because he was also looking after the interests of the farming community.

In its submission to the EU commission, the department of agriculture said the project promoter was a non-profit making trust which holds the lands at Punchestown "for the benefit of the farming community as a whole" and would be required to operate the proposed centre on the same basis.

Furthermore, it would be available "to all farm and farm-related organisations on a non-discriminatory basis" as part of the public infrastructure for the sector.

And, by the way, the EU commission was told it would most likely operate in a break-even situation and was unlikely ever to generate profits.

Neither would it be expected to operate in a competitive market situation either at national or international level.

Obviously, in a further goodwill gesture, and in order to help the indigent Punchestown race complex break even, our minister for finance is going to host an EU summit there next year.

During Ireland's presidency of the EU, he will spend untold thousands of taxpayers' money lavishly to entertain the other finance ministers, as well as 250 hangers-on and about 350 media people.

But it's in a good cause because, surely, it's better to see Punchestown break even rather than spend €15m, and the unspecified hundreds of thousands, on insignificant things like the abysmal health service, dilapidated schools or extra gardaí.

People have waited so long for those services, another few years won't matter.