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Taoiseach to look at bailout for Ocean Race

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Date Published: 15-Nov-2012

BY DARA BRADLEY

An Taoiseach, Enda Kenny has agreed to look at the possibility of a Government bailout to pay the debts left behind by the organisers of the Volvo Ocean Race grand finale in Galway.

However, it will be mid-December at best before the Government knows whether it has the funding to give a ‘dig out’ to Let’s Do It Global (LDIG), which owes hundreds of thousands of euro worth of debts to creditors who worked on the Summer event.

Meanwhile, the extent of the debt appears to be spiralling; increasing by the week. A fortnight ago it was understood that the organisers had sought around €380,000 to pay creditors.

But the Galway City Tribune has learned that the best case scenario in fact is that the bailout needed is €490,000 and could reach €690,000. Officials from Let’s Do It Global have indicated that the amount they now owe creditors is €690,000; and the amount they are owed by debtors is roughly €200,000.

Minister for Transport, Tourism and Sport, Leo Varadkar, and Fáilte Ireland – who already gave funding of €4 million to the event – have turned down requests from Galway West TD, Brian Walsh for funding to make up the shortfall of around €380,000.

Deputy Walsh says he met with An Taoiseach following the meeting and Deputy Kenny agreed to speak with Minister Varadkar and Marine Minister, Simon Coveney, about trying to source additional cash.

The economic impact of the event to Galway, according to a study, was just over €35 million and Deputy Walsh said the VAT receipts on that alone justify Government investment

“The event provided significant revenue to the State from VAT alone, and it was a huge success and it would be terrible if its legacy was tarnished and compromised by debt,” he added.

For more on this story, see the Galway City Tribune.

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