Purchasing Citywest Hotel for €148 million is a “sensible decision” that will ultimately reduce costs for taxpayers, according to Jim O’Callaghan.
The Department of Justice announced yesterday that the Cabinet has approved the acquisition of the hotel, along with the on-site convention centre.
Together, the two facilities can hold 2,300 people and will remain in use for accommodating Ukrainians and applicants for international protection.
Speaking on Newstalk Breakfast, the Minister for Justice argued that owning Citywest is a more cost-effective option than continuing to lease it.
“Since 2020, we’ve been using it in the first instance for vaccination,” he said.
“More recently, for beneficiaries of international protection from Ukraine and international protection applicants.
“We’ve been spending a lot of money by paying out to the commercial centres when we’re renting premises.
“So, it makes a lot more sense for us to own our own centres, our own properties – which is going to be cheaper in the long-term.”
Minister O’Callaghan also expressed that purchasing the site could reduce the “tension” associated with civil servants having to travel around the country to find hotels for lease.
He further noted that Citywest has been a successful location for accommodating asylum seekers.
“We haven’t seen any of the contentious or very negative campaigning against it that we may have seen in some other areas,” he said.
“I want to acknowledge and commend the people of the area for the way they have responded to date in respect of what’s going on there.”
As part of their Programme for Government, Fianna Fáil and Fine Gael committed to ending the emergency use of hotels for housing asylum seekers, aiming instead to use State-owned land.
Minister O’Callaghan said that buying Citywest is a significant step in delivering on that pledge.
“In the long-term, it’s a valuable asset, no matter what happens in the future,” he said.
“If the international protection numbers decline considerably, it’s a very valuable asset for the State to own.
“I don’t think it’s going to lose its value.”
Community reaction
Minister O’Callaghan mentioned that local TDs have already been informed of the purchase and assured that “considerable engagement” with the community will take place soon.
“It’s always difficult in advance to engage before a decision is made,” he said.
“I’m sure many of the people who would be consulted would simply say, ‘We don’t want you to buy it.’
“But listen, it has been purchased and now it’s the duty of the State to engage with people, to see what can we do to facilitate their needs in the area.”
In the first nine months of 2024, the Government allocated €1.43 billion towards housing for Ukrainians and asylum seekers.
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