BY CJ MCGINLEY
SERIOUS doubts now hang over plans for a multi million government investment package planned for Letterkenny. It follows news of a massive ¤40million cut in the Gateway Investment Fund as part of the economic belt-tightening measures announced on Tuesday by the government.
Efforts to contact the County Manager, Mr Michael McLoone, yesterday (Thursday) proved unsuccessful but well placed sources have confirmed there are now serious concerns over the gateway package for nine locations across the country including Letterkenny.
"The funding cut of ¤40 million is a huge blow and obviously has serious implications for plans as part of the gateway investment fund," one source said yesterday (Thursday).
A high powered meeting between top council officials and government department representatives is expected to take place in the coming weeks to discuss the funding shortfall and the implications.
The successful applicants were due to be announced in January but that selection process is now running over six months behind schedule.
Nationally, there was initially to have been a pot of ¤300 million set aside for the four to five successful gateway submissions across the country.
Letterkenny's ambitious submissions had plans to create over 800 jobs as part of a ¤68 million investment to help develop Letterkenny as a joint Gateway with Derry.
It proposed a new Urban Regeneration and Transport Project, a new Science and Technology Research Facility, a Gateway Incubation and Innovation Centre and a Flagship Tourism Project in Letterkenny.
The plan had to be implemented within a three year timeframe (the end of 2010) in order to draw down funding.
Meanwhile, there is also serious concern over plans for up to 380 jobs through the decentralisation programme after it was decided to put on hold any more acquisition of property. It was also one of a number
of measures taken by the government to deal with the economic recession and save one-and-a-half billion euro by the end of 2009.
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