asked the Minister for Defence the present position regarding proposals to constuct new office accommodation at Renmore, Galway, to accommodate sections of the Department of Defence which were to be transferred from Dublin as part of a Government decentralisation programme; and if he will make a statement on the matter.

50.

asked the Minister for Defence the plans and proposals that he has for the construction of a Department of Defence headquarters as announced by him some months ago; the size of this building; the sections of the Department that will be located there; the cost of this building; the date on which the building will commence; and if he will make a statement on the matter.

I propose to take Questions Nos. 17 and 50 together.

As I announced in September last, plans for the construction of a new headquarters for my Department on a State-owned site beside the Department's present headquarters are at an advanced stage. The building will contain approximately 200,000 square feet of space, including specialist areas for military use, and will provide accommodation for those civilian and military staffs of the Department who are at present located in State-owned premises at Parkgate and Coláiste Caoimhín and in rented accommodation in Park House, North Circular Road. It is estimated that, at present day prices, the cost of the project will be of the order of £20 million. Tenders will be invited shortly and it is expected that building will commence early next year.

There are no plans to move any part of the Department's activities to another centre at this stage.

Can the Minister tell us how he proposes to fund this £20 million?

By borrowing.

From what sector?

From the private sector.

Can the Minister give any more details than those he gave at his press conference regarding this borrowing? It would seem that a number of years may elapse before the State has to make the initial and total contribution?

Various packages are being discussed and put together. I assure the Deputy that there will be no difficulty in getting the funds. The fine details of the terms which will be available are being negotiated but, generally speaking, the package will be such that the funds will be made available by the lender to fund the building as it progresses. One arrangement that can eventually be entered into — it may not — is that those funds as advanced, rolled-up interest on them, when the building has been completed, and a repayment schedule will be established and repayments will then commence.

Can the Minister tell us whether the proposals for the erection of buildings at Renmore, Galway, beside Dún Uí Mhaoilíosa Barracks have now been accepted and what the exact position is?

The Government decided in January or February 1983 that the proposals for decentralisation which were then current would be shelved. That includes the proposal for Renmore.