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Mattie McGrath demands cancellation of Dundrum House IPAD contract

Mattie McGrath demands cancellation of Dundrum House IPAD contract

Mattie McGrath criticised the Government's handling of the Dundrum House Hotel IPAD contract after the High Court quashed the Section 5 planning exemption, saying there is no legal basis for the centre. He demanded immediate revocation of the Utmasta Limited contract, an end to taxpayer payments, and a full review of how the contract was awarded.

High Court ruling and legal basis


The High Court judgment quashed the Section 5 planning exemption for Dundrum House Hotel. McGrath said the ruling confirmed local community concerns and that there is no legal or planning basis for an IPAD centre at the site, arguing the certificate underpinning the arrangement should never have been issued.

Contract, provider and payments


McGrath criticised the Department of Justice contract with Utmasta Limited, which he described as a multi‑million arrangement worth £8.5 million a year, saying it continues to be funded despite the court ruling. He called for confirmation that no further taxpayer money will be paid and for a full review of how the contract was awarded, citing concerns about planning compliance, transparency and the suitability of companies such as Woodmaster Limited.

Local impact and jobs


The speaker highlighted local consequences tied to the contract and its operation: 48 jobs lost, Dundrum House Hotel closed, and the collapse of a tourism and leisure hub that supported community life and cultural events. He also described confrontations between residents who opposed the development and enforcement personnel.

Government and Department response


In the transcript the Department of Justice said Dundrum House had not operated as a hotel since 2015 and confirmed a contract with Utmasta Limited was entered in April 2025 after an appraisal and community engagement process. The Department said the contract has a contracted maximum capacity of over 200 (about 190 accommodated at the time), that a section 5 was granted by the local authority, and that IPAS are continuing to use the property while legal matters are ongoing.

Ongoing legal processes and next steps


McGrath pressed for the immediate revocation of the IPAD contract and a review of the award process. The transcript records a judicial review into the planning exemption brought by a local heritage group, the accommodation provider lodging its own Section 5 in October, and a Planola.ie listing that the case is due to be decided by 13th of the 3rd next year (March). The Department said any action required as a result of court proceedings will be addressed.

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Transcript
I return to the SAG of Dundrum House Hotel in Tipperary. On Monday, the High Court delivered a judgment that quashed the Section 5 planning exemption granted for Dundrum House Hotel. The ruling confirmed what local communities have been saying for over a year. There is no legal or planning basis for an IPAD centre at this side. The certificate underpinning this arrangement should never have been issued. Yet despite this, your Government teacher continues to stand over a multi-million newer contract with Utmasta Limited. A contract worked up £8.5 million a year and operated a facility operating outside the law, clearly. This is not simply a legal failure. It has been a social, economic, financial disaster for Dundrum and South Tipperary. Serious questions and modelled questions for your Government as to how you can engage with contractors who do not have legal and do not have filed accounts and are complied with our laws. The High Court has ruled definitively that Dundrum House Hotel is non-compliant. We know that more than 20 IPAD contracts have already been terminated this year for non-compliance with planning, building or fire regulations. Why is Dundrum House Hotel allowed to operate continually when they are in this category? Continuing to fund this contract undermines the integrity of your Government decision-making and shows absolute disregard for the authority of the courts and for this country's planning laws. We have already seen the loss of 48 jobs here, Dundrum House Hotel closed its doors, the collapse of a vital tourism and leisure hub that sustained God's hospitality and community life and brought many people there for tourism and indeed for cultural events as well. Let's not forget, when the people there stood up against this and stood up against their rights, they were met with a tyranny of force by the Gaddish economy, the right squad, the canine squad, God knows what. So now, Teacher, I have three questions for you. Will your Government immediately revoke the IPAD contract for Dundrum House Hotel in light of the High Court ruling? Will you confirm that no further taxpayers' money will be paid under the contract that has no legal foundation whatsoever? Will you acknowledge the grave wrong done to the people of Dundrum village and community who have been vindicated by the courts and commit to restoring this amenity to its rightful role in supporting rural development and commit to a change in how these decisions are made by your Government with these contracts? And finally, Teacher, will you commit to a full review of how the contract was awarded, given serious concerns about planning compliance, transparency and suitability of Woodmaster Limited? High Court evidence shows that companies associated with Dundrum House Hotel have not been tax-compliant for six years. Just imagine, any other citizen would not operate that, or company, or business. So what kind of an example have we shown? Why was the company deemed suitable for state contracts with up to 8.5 men in January, when all this was known and priced out by the people and us public reps as well? First of all, I thank the Deputy for raising what is an important issue, and we fully acknowledge that. My understanding is that Dundrum House Hotel had not been operating as a hotel since 2015. So I don't think it ceased to be in a hotel because of the decision in 2022 to use Dundrum House for, I think initially, the beneficiaries of temporary protection following the war in Ukraine. Since my understanding was the first initial use of Dundrum House for Ukrainians fleeing the Ukrainian war. But you might clarify that for me. I understood that it hadn't been in use as a hotel since 2015, which would be about seven years earlier than it being used. But the adjacent golf club and catering facilities are still being used by the public and the community since that time. No, you are correct. The Department of Justice did enter a contract in April 2025 with a company called Utmasta Limited to provide international protection accommodation at Dundrum House. That followed a detailed appraisal process and community engagement that had been active since September 2024. My understanding is that it has a contracted maximum capacity of over 200, but it is about 190 people who are accommodated there at the moment. Part of that appraisal process for a new contract included a review of the property services and compliance and this was done in conjunction with the local authority in the case of this contract and a section 5 was granted by the local authority. That is my understanding of what happened. What Master Limited is engaged with Tiberia County Council has given a commitment to regularise any outstanding planning matters at the wider site. My understanding also is that there are two separate legal matters ongoing relating to the property, neither of which involve the Department of Justice directly or the Government directly. There was a judicial review into the planning exemption granted by Tiberia County Council to Dundrum House by the local heritage group. The owners decided not to continue to defend the proceedings is my understanding there. Then the accommodation provider has lodged their own section 5 to Tiberia County Council in October of this year, which was referred to on Commission Planola by the local authority for decision. As the local authorities said that they were unable to make a decision on the matter. The case number is due to be decided by the 13th of the 3rd next year, that is March of next year according to Planola.ie website. And then there is another dispute which I do not want to comment on, which is not really relevant to me in terms of ownership and so on like that. What the Department is saying is that based on the fact that the contract and leases were and still are in place, IPAS are continuing to use the property. But if any action should be required as a result of any court proceedings, these will be addressed by officials as appropriate. Deputy McGrath. It is not accurate. I mean, it was closed, the hotel, but the Crow family operated a successful and wonderful business there. I was at numerous weddings and many, many other events there. The golf, the pool shop and indeed the venue was operating as a restaurant and everything else. So it was effectively running while the hotel was damaged by fire. So now the problem, Mr. Taoiseach, you do not seem to get the issue. You are dealing here with rogue contractors. We pointed out to the integration team and so did Deputy Murphy myself pointed out to the Minister that it was outside the law and there was an error that the Council gave to Section 5. They have conceded that. Now they are going back for another Section 5 which the Council have kicked to board Penola. It is just a game of Russian roulette. Money for fat cats. The real problem is you are paying too much per person that is being housed by IPAS. And Taoiseach, you are also wrong in saying that the Department of Justice gave the contract. No, it was Minister Grauman and his department at the time that ran amok and invited everyone from Timbuktu to Ireland to come and you will have your own front door in 30 days or something. This is crazy. And Taoiseach is better here and there is a better reply from you and I want you to instruct Minister Cameron to meet Deputy Murphy and myself, we have been trying to meet him to look at this situation urgently. First of all Deputy, you are correct, it was the Department of Children and the Government overall but the Department of Children handled migration. This Government has decided to move migration matters and asylum seeking issues particularly to the Department of Justice and that is happening and that is why I mentioned justice in that concept. They are now dealing with this. And Deputy Minister Callahan has no issue meeting with you or other deputies, all of the deputies, there is no issue there in terms of that. I think we need to be careful with our language deputies, don't we? We can be calling people rogue contractors in the House, I think that is unfair to people. It can clear all sorts of things. Thank you. I know but it is a term that I think could cause difficulties for people outside of the House and we just need to be careful about that. Also I just want to pick up on a comment. I don't think the Gardaí do not do tyranny. The Gardaí keep the peace and uphold the law and I think we are very grateful, I was in Temple Moor last week with Minister Callahan, it was wonderful to see so many new Gardaí coming out enthusiastically and 220 new Gardaí going into Temple Moor which shows the pace and momentum behind Gardaí. So we should keep affirming the Gardaí and all that they do but I will ask the Minister to meet with you and your colleagues.