STATE PAYMENTS of more than €43 million have been made to the consortium behind the National Convention Centre since its opening in Dublin’s docklands one year ago.
The payments represent a subsidy of more than €500 for each visitor to events held in the centre since last August.
The payments are part of the 2007 public-private partnership deal agreed by the then government with the Treasury Holdings-led consortium, Spencer Dock Convention Centre Dublin.
Under the deal, the State will pay the consortium about €715 million over 25 years before the centre reverts to State ownership.
Payments to the consortium began last September and reached €15,403,018 by the end of 2010. So far this year, €27,853,791 has been paid over by the State, according to figures provided by the Department of Finance in a parliamentary reply to Labour TD Kevin Humphreys.
The centre has held 267 conferences, concerts and other events since its opened, with 84,451 attendees. The payments made to the consortium to date represent an outlay equivalent to a €512 subsidy for each visitor to the centre.
Mr Humphreys questioned whether the deal agreed four years ago represented value for money and whether the centre was “pulling its weight” in attracting tourism.
“The low number of visitors to the convention centre in its first year of operation is disappointing,” he said. “Considering the venue can accommodate up to 8,000 people for a large conference, questions must be asked as to whether the public are getting value for money.”
Despite the capacity of the centre, the average attendance has been just over 300 people, which was a poor return on investment, he added.
“Serious questions must be asked as to whether performance-related targets were included in the contract; and, if not, it highlights further the terrible value for money achieved by the last government,” Mr Humphreys continued.
“When the Dáil resumes in September, I plan to question the Minister for Finance on this issue.”
He was concerned that the State’s investment would never be recouped under the terms of the agreement, either directly or in terms of tourism generated.
A report by the Comptroller and Auditor General published last September found the consortium’s bid was “the most expensive proposal”, and its selection was based on higher marks for design, construction, operation and maintenance.
The report found the former minister for tourism John O’Donoghue decided to proceed with a national conference centre in 2005 even after he was told the costs would outweigh the benefits by up to €217 million.
