The Department of Housing & Local Government says a funding gap identified by Clare County Council to takeover Shannon Heritage sites ‘may be adjusted downwards’.
It’s understood the possibility of a deal being struck before Christmas on the matter is now looking increasingly unlikely.
It’s understood engagement between the Shannon Airport Group, the Council and a number of Government departments in respect of the handover of the management of the sites remains ongoing.
The local authority says it needs 15 million euro to add Bunratty Castle & Folk Park, Knappogue Castle and Craggaunowen to its portfolio.
However, the Department of Housing & Local Government’s told Clare FM this figure ‘may be adjusted downwards’ as a result of ‘better than projected performance of visitor numbers to Bunratty Castle in 2022’.
It’s understood the last time officials from that Department met with the Council was July, around the same time the local authority submitted a lengthy due diligence report in which it may a case for the funding package.
Clare County Council, meanwhile, has told Clare FM it requires ‘the full funding proposal’ it initially outlined earlier this year in order for the transfer to proceed.
The local authority says it still hasn’t ‘received any communication from Government relating to a funding proposal being finalised nor any indication that a downward revised funding package is being considered by government’ since it announced it was withdrawing from the process earlier this month.
Statement from the Department of Housing
The Department of Transport, as the parent Department of the Shannon Group, have the lead role in the transfer of heritage sites from Shannon Group to relevant local authorities. In order to secure the future of the heritage assets and employees, Shannon Group has had extensive engagement with the relevant local authorities since early 2021.
Shannon Group continues to engage with Clare County Council in relation to the proposed transfer of Bunratty Castle and Folk Park, Craggaunowen, Knappogue Castle, and Cliffs of Moher Retail Outlet.
As part of its engagement with Shannon Group, Clare County Council identified a funding gap for which it sought Government assistance to enable it to take over the sites.
The funding gap identified by Clare County Council is €15m (€5m a year for 3 years), the quantum of which may be adjusted downwards partly due to the better than projected performance of visitor numbers to Bunratty Castle in 2022.
The Department of Transport established an inter-departmental working group in May 2022 to examine funding options in relation to the proposed transfer to Clare County Council of Bunratty Castle and Folk Park, Craggaunowen, Knappogue Castle, and Cliffs of Moher Retail Outlet. The group includes officials from the Departments of Transport, Housing, Local Government and Heritage, Public expenditure and Reform, the Office of Public Works, and Tourism, Culture, Arts, Gaeltacht, Sports and Media.
To date, the working group has met three times, and identified a number of ways to support a transfer.
The Department of Transport has also met with Clare County Council and Shannon Airport Group and has asked both to continue their engagement and consider the package of measures identified by the inter-departmental working group, with a view to reaching agreement on a transfer.
Officials from the Department of Housing, Local Government and Heritage have met officials from Clare County Council on a number of occasions over the past 12 months in relation to the proposed transfer, the latest meeting was in July of this year.
At this meeting the Department recognised the current financial environment in which local authorities are operating, and the pressures facing them in respect of general inflation and higher energy costs in particular.
These challenges are common across the sector and the Department highlighted its wider responsibility to ensure that all local authorities can continue to deliver services, whilst managing limited resources.
Officials from this Department will continue to engage with the inter-departmental working group and Clare County Council to support progress in the transfer of the remaining Shannon Heritage sites to Clare County Council.
Statement from Clare County Council
In the comprehensive Due Diligence report submitted to government in July 2022, Clare County Council detailed significant neglect of the sites, the urgent need to halt the deterioration of the assets and the investment required to achieve this.
The Local Authority stressed that the proposed transfer must not have a significant impact on services and commercial businesses in Clare and therefore, the full funding proposal outlined in the Due Diligence report would be required for the transfer to proceed.
Since the announcement on 9th December of its withdrawal at this time from the process, Clare County Council has not received any communication from Government relating to a funding proposal being finalised nor any indication that a downward revised funding package is being considered by government.
