Doubling of Dún Laoghaire baths project costs to €18.2m criticised by auditor

The refurbishment of Dún Laoghaire Baths, which more than doubled in cost from an initial €8.7 million to €18.2 million, has been criticised in an audit by the Local Government Audit Service.

The statutory audit report on Dún Laoghaire Rathdown County Council’s spending for 2022 also found rates arrears owed to the council increased to €25.3 million in the year, up from €21.4 million in 2021. The audit further found housing rents owed to the council increased from €5 million to €5.4 million during the year.

Referring to the baths project, the audit service report said a “more defined” and “comprehensive” project brief could have “identified unforeseen costs” as “required by the public spending code”.

The baths, which date from 1843, closed in 1997, and were the subject of a 17-year campaign by locals to have them refurbished and reopened to the public. After a five-year work programme the baths reopened last December, but without a swimming pool, and amid complaints that narrow steps to the sea caused problems for people with mobility problems.

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The local government auditor said he had been advised the scheme as opened was “the first phase”. He said a pavilion building at the site “is to open shortly”. He also noted a design team had been appointed to procure an accessible ramp link between the mid and lower levels of the complex.

The audit noted the council secured a grant of €1.1 million for the project from the European Regional Development Fund, and had “reacted in a timely manner to control the increasing costs by seeking legal advice”.

[ First Look: Dún Laoghaire Baths are finally set to reopen. It’s a breathtaking sight ]

But the audit concluded the increase in cost of the baths project could have “direct impacts on funding for other schemes to be developed by the council”.

The council’s response, which was recorded in the audit service report, said “Governance arrangements pertaining to capital projects have been strengthened considerably since the commencement of the baths project”.

In relation to the rates arrears, council management said enforcement action was strengthened in 2022, and resulted in an increase in the number of ratepayers regularising their accounts or signing up to direct debits. The council management also said it was “actively pursuing” rent arrears. In percentage terms, the collection yield for housing rents was 76 per cent, down 1 per cent from the previous year.

In a section of the audit headed Statement of Financial Position, the auditor raised issues in relation to the council’s cash balances, part of its net assets. The auditor noted the council had net assets of €3.72 billion at December 31st, 2022. This was an increase from €3.64 billion a year earlier. The auditor said the main contributor to the year-on-year increase was “bank investments and cash balances” which he said amounted to €380 million by the end of 2022.

The money included, but was not limited to, Government grants to enable capital works; amounts ring-fenced for specific purposes such as planning receipts; and other money that was “designated in previous years as sinking funds against liabilities that have yet to materialise”.

The auditor said “The requirement to review the need for holding such significant funds has again been discussed with management.” While he acknowledged there were detailed proposals for the funds to be used, he said it was important that spending on schemes goes ahead in a timely manner to mitigate the effects of construction-related inflation.

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