Yesterday we heard the Taoiseach, in his defence, speak strongly of the manner in which he conducts his business as Taoiseach of the country and to the effect that he never betrayed public trust and did everything in accordance with the highest of standards. Yesterday we also heard from TG4's Ms O'Connor of the method by which funds were despatched for a marine access infrastructure in Kenmare, County Kerry, despite the fact that on 4 December 2000, the assistant secretary of the Department of the Marine and Natural Resources, in a memo to the secretary, said that the Taoiseach was anxious that a letter would issue without delay and that he took the view that such a letter issuing without appraisal of the project involved would involve a letter of comfort, which could result in legal claims against the Department subsequently. The drafting of that letter was conducted by the Taoiseach's programme manager. It states:

Taoiseach,

This is the type of letter you need for the Kenmare marina project. Would you please see if Minister Fahy will sign and issue it?

The letter is signed "Gerry". This is in advance of any appraisal of the project involved, which project amounted to €750,000, of which over €300,000 has been paid.

Deputy Healy-Rae, in whose favour this was being granted, as distinct from the then Minister for Tourism, Sport and Recreation, who is in the Chamber, had this letter changed, on his insistence, to read "I believe that the project would be eligible for funding" to "I agree that the project will receive funding."

In light of yesterday's probity in high standards, does the remit of the Taoiseach's programme manager extend to approval of capital projects without appraisal? Did the Taoiseach see this correspondence? Did he see and approve the letter from Gerry? Did he tell the then Minister for the Marine and Natural Resources, Deputy Fahey, that the letter from Gerry should issue and that on foot of that, it amounted to a letter of comfort on a project, be it worthwhile or otherwise, that amounted to €750,000? How can the Taoiseach stand over this kind of dispensation and slush fund being used by his party, apparently on his personal direction?

I wish to make a number of points in reply to Deputy Kenny. The project, which I and the Government were supportive of, was part of four projects in 2000, one in Kenmare, which Deputy Kenny spoke about, Cahirciveen, Rosses Point and Roundstone. A total of€5.7 million was allocated. There were four flagship projects in advance of the NDP marine tourism grant. The grant approval for the Kenmare project was for €752,550 and was subject to a number of conditions, including evidence of planning and foreshore permissions having been obtained. Payment of the first instalment of the grant was made in December 2001 in the amount of €332,312 and it was made on the basis of invoices in respect of matured liabilities, copies of the planning permission and the foreshore lease that had been obtained.

In October 2002 the Department became aware that the development had not been constructed in line with the planning permission and the departmental engineers were immediately asked to investigate the situation with the local authorities. No further payments of the grant were made——

The Taoiseach should answer the question he was asked.

——and the Department liaised with Kerry County Council on the planning difficulties.

As the promoters had applied for retention permission, it was considered advisable to await the outcome of the planning process before taking legal advice as to how the State's investment should be protected. Following An Bord Pleanála's refusal of retention, a new planning application was made to Kerry County Council. The application was withdrawn in November 2003 and steps were taken by Kerry County Council to enforce the conditions of the original planning permission. The Department is waiting to see if the original planning permission is adhered to, otherwise it would have to retrieve its money.

What Deputy Kenny did not say about the letter from Gerry Hickey, my programme manager, is that he wrote on a letter from Kevin O'Reilly & Co., Registered Auditors and Accountants. The letter states:

Re: Proposed development of a marina and maritime leisure and training facilities at Derreenacallaha, Kenmare, Co. Kerry by Daniel McCarthy (the project to be developed and operated by The Star Marina Limited).

Dear Sirs,

I wish to refer to your letter dated 7 November concerning the above proposed development which was passed to this Department by the Department of the Taoiseach.

The criteria that govern projects of this nature is as follows:

— long term viability or value of project

— value for money of project

— tourism value (numbers, seasonality, spread of product etc.)

— compatibility with the protection of the environment...

— impact on quality of resources ...

— contribution to rural development

— contribution to community development

— impact on those in or at risk or falling into poverty

— impact on equality of opportunity

— long-term management capability

— links with other tourism...

Allow the Taoiseach, please, without interruption.

The initial examination indicates that the proposal scores highly on these points. The Department is reviewing the papers submitted with your letter and will be in touch with you shortly seeking some additional information.

As a general rule, any public grant-aid to infrastructural projects has to be based on clear and precise information within a pre-set framework with a clear indication of specific items such as exact details of costs of each specific element of the overall plan——

Did Jackie do the architectural work?

——exact details of all funding sources, detailed business plans, legal and planning requirements, details of operational aspects, etc.

Subject to the satisfactory responses to the additional information sought, I believe that the project will be grant aided...

Signed by Frank Fahey

That was the letter Gerry Hickey wrote the note on, not some letter out of the blue.

Kenmare is one of the finest places in this country and has one of the best tourism centres. It has been involved in tourism for 110 years and I am glad to see we are trying to do something for tourism in Kenmare.

It appears as if the Celtic Mist was going to be the first yacht to land at this marina. What the Taoiseach did not tell the House in respect of this “Punchestown by the sea” proposal was the letter following the one he read out, which has the heading: “Mr. Guilfoyle, Revised letter issued to Deputy Healy-Rae, following requested changes by him, overleaf, and agreed by Taoiseach's Programme Manager”. That change is as follows. Instead of, “I believe that the project will be grant aided...”, it reads, “I agree that the project will be grant aided...”. This is in advance of appraisal under all those criteria the Taoiseach has mentioned.

I do not doubt the validity of any project, but the method the Taoiseach adopted in delivering on this project needs to be answered. Why was the Taoiseach involved in this particular project? He came into this House last December to answer a charge that he was involved in a planning permission case in Roscommon which he dealt with very comprehensively. He was involved in this case because the programme manger in his Department asked him to look at a letter and to advise the then Minister, Deputy Fahey, that he should issue it.

There are 20 people within 400 yards of this building who sleep in cardboard boxes every night. There are hospitals units waiting to be opened, hospital beds closed down——

The Deputy's time has concluded.

——and yet the Taoiseach allocates €750,000 for a project, half of which has been demolished, as it did not comply with planning permission. Is this not an abuse of power? It is the creation of a slush fund for political patronage by him and on his direction and it is an insult to the people of the country and it is not the kind of standard he spoke about yesterday.

Hear, hear.

I remind Deputy Kenny that we get 6.1 million visitors per year, that €4 billion in foreign revenue earnings comes out of tourism, that the industry employs 140,000 people in this country and tourism is massively important. Kenmare is one of our best tourist resorts.

The Deputy is turning his back on it.

This is Leaders' Questions. Only Deputy Kenny was entitled to ask a supplementary. Deputy Kenny is entitled to hear the answer and I would ask his colleagues in the Fine Gael Party to allow him to hear the answer without interruption, please.

I was saying that tourism is massively important to this country, that we take over €4 billion in tourism revenue. All our national development tourism operational projects try to improve the infrastructure in tourism and in this case, that equally happened with four other projects. It is proper that that happens. The fact that in this case Deputy Jackie Healy-Rae and other local Deputies were pursuing the project——

There is not a project under the national development plan that Deputies are not supporting.

A Cheann Chomhairle——

Deputy Hayes, the Chair will be left with no choice but to deal with you.

There is not a project under the national development plan for which TDs are not lobbying. I cannot walk the corridors of this House but TDs of all parties are lobbying me about capital projects. Let us stop the hypocrisy.

Hear, hear.

If we are helping tourism projects we are helping them. In this case, the matter was properly dealt with by the officials and it was properly dealt with throughout.

A Cheann Chomhairle, you quite properly allowed 17 minutes for that valuable exchange on an innovative project so I presume you will allow me the same time.

The Chair requests each Member speaking at the end of the time allotted to conclude.

Who deserves credit for this? Is it Deputy Healy-Rae or the Minister for Arts, Sport and Tourism, Deputy O'Donoghue, or does Deputy Healy-Rae get everything done?

The Deputy is using his time but I am not sure if it is on the question he intends to raise.