EU funding of £2.4 million earmarked for the proposed Doonbeg golf resort in Co Clare, designed by Greg Norman, has been suspended by the European Commission.
The Commission claims that the Government failed to reply adequately to queries on nature designation issues associated with the proposed £12.5 million development at Doonbeg. The Government denies this claim.
In a letter to the Department of Tourism, Sport and Recreation from the Director-General of Regional Policy at the Commission, the Department has been told that the project has been deemed non-compliant with the European habitats directive.
The Commission adds that following the absence of a reply to a request to provide additional information on November 19th last, the grant had been suspended.
However, the Commission's assertion that the Government has not replied to its queries is disputed by the Department of Tourism.
According to the Department's written response to the Commission, the Irish authorities responded both rapidly and in great detail to the Commission's concerns.
The Department's representative said that Duchas, the Heritage Service, believed Ireland to be in full compliance with the EU habitats directive as far as the lands in the Doonbeg area were concerned. He added that he was at a loss to understand how the Commission could refer to "an absence of a reply".
While a spokeswoman for the Department has said the project is the subject of continuing discussion, a Commission source insisted yesterday that the funding had been suspended for the project and the position remained as outlined in the letter from the Director-General of Regional Policy.
He said: "Obviously, the Commission would reconsider in the light of any further representations or submissions from the Irish authorities. It is reversible.
"However, in essence certain items remain outstanding and we are awaiting those items."
If Dublin is not successful in its attempts to rescue the funding, no other Irish project will benefit from the £2.4 million.
