There were sharp exchanges among Waterford councillors this evening as the local authority approved a controversial €750,000 loan for Mount Congreve.
Addressing the September plenary meeting of Waterford City and County Council held in Dungarvan, new CEO Sean McKeown said he had "no hesitation" in recommending the Council approve the loan but said it was ultimately a matter for the elected members to decide upon.
He explained the loan would assist the board of Mount Congreve complete works which are underway for additional accommodation units and to cover cash flow issues which have arisen.
"The completion of the accommodation units at Mount Congreve will give a vital and critical additional source of income," he said.
"Funding can be sourced from under-spend this year in both the council's revenue and capital account," he added.
CEO Sean McKeown
Mr McKeown said there would be no adverse impact to any other local services by the council this year, or any other projects, as a result of providing the loan.
He explained that the current financial challenges facing Mount Congreve were due to visitor numbers being less than projected, and higher than forecasted operating costs.
He highlighted that there are around 30 people employed at Mount Congreve and outlined the importance of Mount Congreve as part of Waterford's tourism offering.
Reaction to proposal
Fianna Fáil Cllr John O'Leary supported the recommendation and this was seconded by Independent Cllr Declan Clune.
Both outlined the importance of the amenity to the local area and the negative impact which any job losses would have.
Independent Councillor David Daniels said "we all support Mount Congreve and our priority is to protect employment".
However, Cllr Daniels highlighted a recent "cash injection" of €1.3m from Waterford Council.
"I support a cash injection for day to day operations but we need to decouple capital investment and bring it back to Council at a later stage once a review is complete," he said.
He suggested councillors from parties currently in government should refer the issue to their colleagues and use "some of the windfall from the Apple pot".
Cllr Donal Barry
Independent Councillor Donal Barry said he had only two weeks notice that Mount Congreve required another "bail out".
"I think the way this has been handled is totally unacceptable," he said.
Cllr Barry said there had not been sufficient engagement on the matter from the OPW despite requests which he had made.
"We gave Mount Congreve a million euro, a loan of €300,000 and there's not even a letter from the board and no plan as to what the future of Mount Congreve should be," he claimed.
Cllr Barry said nobody wanted to see job losses, but he cited financial constraints often referenced by the local authority particularly in relation to housing.
Cllr Conor McGuiness of Sinn Féin seconded Cllr Daniels' proposal which he said was "sensible and prudent".
"We're being asked to green light a loan without even one document having been presented to us as councillors," he said.
"That's not a good way to do business and I'm uncomfortable with that approach."
His party colleague Cllr John Hearne claimed he represented one of the "most deprived areas in the country" and outlined the difficulties facing a local community centre in accessing finance to fix a leaking roof.
He also referenced the recent Apple court ruling, and highlighted the lack of 24/7 cardiac care at UHW and the wait for a decision on the Waterford Airport business case.
Issues with 'decoupling'
Director of Services (Economic Development) Michael Quinn said the proposal to "decouple" had a number of "significant issues".
"It's not a realistic option for us to consider," he said.
In relation to requests for further information, Mr Quinn said updates will be brought to coucillors as part of the budgetary process this year.
CEO Mr McKeown confirmed there is a business plan in place for Mount Congreve and a financial review of the plan will form feedback as part of budgetary discussions.
Cllr Mary Roche of the Social Democrats asked for "an assessment as to what happened the €1.3m we granted and loaned to Mount Congreve".
Meanwhile, Sinn Féin Cllr Pat Fitzgerald asked why management "pursued capital works when there wasn't capital".
"They seem to have second guessed the council's decision and brushed us aside. I think that was a mistake," he said.
Mr Quinn said information on the use of the funds could be provided, and said a number of "incremental issues" cropped up which resulted in "the point we're at".
"If the view of the Council is not to provide the funding, then that is obviously the action which will be taken," he said.
However, Mr Quinn said there are "consequences" to standing down a project at such a stage.
Cllr David Daniels
Cllr Daniels reiterated that he proposed that the Council give enough cash flow to "protect jobs and keep the doors open" but asked to defer the capital element until their next meeting.
A vote then took place on this proposal, which was defeated with 20 voting against and 11 in favour.
The original proposal was then put to councillors of approving a loan of €750,000 to Mount Congreve, as recommended by the CEO.
The resulting vote saw 20 councillors voting in favour, three against and eight abstentions.
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