Shannon Development has pulled out of a proposed joint venture with Clare Co Council to develop the €25 million visitor centre at the Cliffs of Moher
Last December, the council secured planning permission for the proposal and since then the local authority has held negotiations with the regional tourism agency to see if it was going to participate in a joint venture.
Currently, Shannon Development operates the tea-rooms and shop at the cliffs and generates significant income each year from its operation there.
It is now to withdraw from operating at the cliffs after almost three decades, saying it has no funding to contribute to the council's project. Shannon Development had opposed the council's plans throughout the planning process, claiming that the proposal was flawed and against best international practice.
However, in a statement issued yesterday, Shannon Development said it supports the council's intention to implement the integrated development project at the cliffs.
Its decision not to participate in the project came under fire from the chairman of the Clare Tourist Council, Mr Patrick Blake.
"It is very disappointing. They are professionals in the tourism industry and are employed by Government to promote tourism in the mid-west, so it does not make any sense that they would not be taking part in the project."
The decision comes at a critical time for the council's plans for the centre as today it lodges with Fáilte Ireland a grant application for €12.5 million towards the project.
The council also has no money from its own resources to fund the project and without the Fáilte Ireland grant, it will face a difficult task in getting the necessary funding to build the centre.
Council members last month approved the raising of a loan of €15 million for the project and the council's head of economic development, Mr Gerard Dollard, said yesterday that the grant-aid funding "is critical to the progress of the project".
Former council mayor, Mr Richard Nagle, said "that the council has put a case for funding that is very compelling which shows that the project will be a viable and self-financing project".
Mr Nagle said he was disappointed with Shannon Development's decision.
However, he added that "it clarifies Shannon Development's position and removes any uncertainty that was there and that is to be welcomed".
Mr Dollard said: "The council views the implementation of the proposals as essential to improving the unsatisfactory situation, which currently exists, and in an effort to provide facilities for the 750,000 visitors who visit the site on an annual basis."
A decision on the grant-aid application is expected by the end of the year.
