Funding shortfall fears grow over €11m. Mayo landmark projects

Concerns have been flagged over an €11 million investment in a landmark Mayo urban regeneration development facing a funding shortfall due to rising costs.

Senator Lisa Chambers has called for swift action to ensure key projects in Castlebar's historic core proceed as planned.

She wants the Department of Local Government to adopt 'a hands-on approach' to ensure Mayo County Council's business case plan for projects at the former Imperial Hotel, the old Post Office building, the Mall and the local military barracks are backed with extra funding to meet rising costs – which could be as high as 10%.

Speaking to The Connaught Telegraph, Senator Chambers said she did not believe the investment is in jeopardy – but there is a need for intervention to prevent the council having to meet the expected shortfall out of its own coffers.

“This is one of the biggest ever capital allocations for Castlebar town centre and it's important that it’s fully delivered,” she said.

“I would like to see the department working with the council to secure in the next budget the additional funding that will be required due to the escalating costs due to inflation.

“The issue of the funding gap has to be addressed and now is the time to make provision for it.”

Senator Chambers said citizens are seeking an update on the work.

"They want to know what stage of development are these projects at and when will we see the projects delivered for the people of Castlebar and Mayo.

"The questions are being raised in the context of inflation and rising costs of building materials and labour.

“There is also a difficulty in getting tradespeople, especially when we are looking at restoring old buildings.

“I think particularly of Castlebar Military Barracks, and a specialist expertise would be required to carry out those types of work to the standard we all expect to see.

"I reiterate that these are very important projects for Castlebar and Mayo.

"A sum of €11 million might not seem like much if we stood in Dublin city centre but in Mayo and its county town of Castlebar, it is a huge amount of money and significant delivery for the town.

“It is the biggest allocation of funding we have seen in a very long time.”

Minister of State Malcolm Noonan said the department works closely with the successful applicants in respect of project funding, but responsibility for the advancement of urban regeneration and development fund (URDF)-supported projects through the various stages of planning, development and completion is, in the first instance, a matter for the sponsoring agency, Mayo County Council.

He elaborated: “All URDF-supported projects must be carefully developed and managed by the sponsoring agency in accordance with the normal conditions and arrangements that apply to public sector-managed projects.

“This includes exercising appropriate cost control and delivering projects, as approved, and managing its advancement through the various decision stages set out in the public spending code.

“As part of this public spending code process Mayo County Council has submitted a preliminary business case in respect of each of these two projects and following their evaluation the department will be in touch with the council on the matter in due course.”

Senator Chambers asked what is the next stage now that the council has submitted a preliminary business case.

“When does the Minister of State envisage his department will have evaluated that business case? When will the department be in touch with the council on the matter?

“On behalf of the citizens in the area, I am looking to establish an approximate timeline that we can work to, acknowledging that it has been more than a year since this was first announced. People are, understandably, asking questions.

"The Minister of State touched on what the department is doing to deal with inflation and the excessive rise in costs of building materials and labour, which will of course affect the local authority as well?

“In the interests of the public good, these are the types of projects in respect of which the department will have to take a more hands-on approach.

“It appears that it is currently taking more of a hands-off approach.

"In dealing directly with rising costs associated with projects like this, the department will need to get around the table with all its expertise and see how we can assist the local authority in managing escalating costs.”

Minister Noonan agreed it is critical for the department to engage in such a way.

“Appropriate cost control is important, given the inflationary pressures.

“We are in exceptional times and it requires a high level of engagement between our department and the local authority. We commit to that engagement," he added.