The Minister for Tourism and Sport, Dr McDaid, has told one of the consortiums seeking to build the National Conference Centre that if it did not drop its legal action, all EU funding for the project could be lost.

In a strong appeal, Dr McDaid said that for the sake of Dublin and the future of the project, the Spencer Dock International Convention Centre consortium, in which property company, Treasury Holdings, has the majority stake, should call off its High Court action.

The Spencer consortium is seeking an order quashing an earlier decision made by the management board for product development at Bord Failte, the body appointed to choose a winning project.

"I'm running out of time on this project and the planned action in the courts could end up finishing the whole thing," the Minister said yesterday.

He said the contract for the centre needed to be completed by June 13th for the meeting scheduled in Brussels.

"If I have not got this whole thing agreed by then, if not earlier, the funding will be lost," said Dr McDaid. "For God's sake, in the interests of the capital and the economy generally, I'm calling on this company to take this matter out of the courts," said Dr McDaid.

Dr McDaid said the Spencer consortium should join with Bord Failte and answer the remaining questions which would enable the process to be completed.

Last night, the management board for product development was understood to be meeting to discuss the court action by the Spencer consortium. A spokesman for Bord Failte said it would be inappropriate to comment on what meetings might be taking place.

Sources close to the Spencer consortium have said it is unlikely it will now withdraw its court action. It is expected to claim in court that the management board for product development should have gone ahead and chosen a winner on April 14th last.

It says the decision of the management board of product development instead to invoke a "negotiated procedure" was wrong and taken without the correct authority. It is bringing an action against both Bord Failte and Dr McDaid.

Dr McDaid has said he is looking at the idea of introducing a tourist levy to fund the sector. Such a move may be needed as EU tourism will be drastically scaled down in 1999 when the Operational Programme for Tourism ends.