Members of Clare County Council have unanimously given the green light for the transfer of Shannon Heritage's Clare visitor attractions, including Bunratty Castle and Folk Park, to the local authority from the Shannon Airport Group.
At a special Council meeting on Monday afternoon, chief executive of the Council, Pat Dowling said that the "strategic and ambitious acquisition for the Council" represented "a unique opportunity for Clare".
Mr Dowling said his recommendation to proceed with the transfer marked the culmination of two years work and "a comprehensive due diligence and is most definitely not something the Council has rushed into".
He told councillors: "I assure you that there has been a full, forensic and detailed analysis and expert advice that has been central to placing the item before you today."
Mr Dowling stated that the proposed takeover of Bunratty Castle & Folk Park, Craggaunowen, Knappogue Castle and the Cliffs of Moher gift shop has been enabled through a Government multi-annual support package.
A briefing document to councillors confirmed that Shannon Heritage’s nine sites generated revenues of €25m in 2019 and the Council is to assume control of the four Clare sites.
The Council is to acquire the assets for zero consideration and with zero debt on the balance sheet of the business.
The Government package includes €6 million funding support for 2023 after the Council projected that there would be a funding deficit of €12.2 million for the three-year period 2023-2025.
The projected deficit of €6.5 million for 2023 is to be followed by a funding deficit of €4.9 million for 2024 and €724,000 for 2025 before Government funding is taken into account.
The Council projected 'funding gap' includes operating losses of €2.19 million for 2023; €1.37 million in 2025 and €474,000 for 2025.
Included in the funding gap is €4 million capital spend that includes €2 million that is required to be spent on Bunratty Castle.
In his report to councillors, Mr Dowling stated that in relation to the years 2024 and 2025, further Government support has been outlined.
He said: "Any funding requirement for future years beyond the commitment of €6 million in respect of 2023 will need to be sought and agreed as part of the normal Estimates process in those years."
He said: "This is normal practice for local authorities with their parent Government Departments."
The report stated that the Office of Public Works (OPW) will seek funding in 2024 and 2025 as a matter of priority for Bunratty Castle.
Ninety full time and 60 seasonal employees are employed across Shannon Heritage Clare sites and the briefing document states that pre-transfer terms and conditions pretransfer are protected.
Cllr Pat McMahon (FF), who proposed that councillors accept Mr Dowling's recommendation to proceed with the deal, claimed that morale amongst staff at the Shannon Heritage sites has been so low "with some of the staff not getting a pay rise in fourteen and a half years".
After the unanimous endorsement, Mr Dowling said that the Council would sign a Share Purchase Agreement (SPA) and the associated legal documentation and establish the related governance and legal structures, including Clare Tourism DAC.
- reporting Gordon Deegan
