Tipperary TD Mattie McGrath has called on Taoiseach Micheal Martin to account for how an IPAS contract was awarded to the Dundrum House Hotel after a planning exemption was revoked by the High Court on Tuesday.
The exemption had allowed asylum seekers, and previously those from Ukraine, to be housed at the once popular hotel in County Tipperary. On Wednesday, the High Court quashed the Section 5 Declaration after Tipperary County Council and the developers conceded the case, admitting the site is not planning compliant.
This came about due to the use of an unauthorised wastewater treatment system. The High Court heard that the companies behind the hotel failed to file accounts for six years.
“The ruling confirms what local families have been saying for a year,” McGrath said.
Speaking on Wednesday in the Dail, local TD Mattie McGrath, who has long been outspoken in his opposition to the government’s use of the hotel once popular with families in the area, said that the ruling had confirmed what local communities had been saying for over a year – that there is no legal or planning basis for an IPAS centre at the site.
“The certificate underpinning this arrangement should never have been issued,” Mr McGrath said.
Despite this, Mr McGrath said, the Taoiseach’s Government “continues to stand over a multi-million euro contract with Utmasta Limited, worth up to €8.5 million a year, to operate a facility that is clearly operating outside the law.”
“This is not simply a legal failure; it has been a social, economic and financial disaster for Dundrum and south Tipperary,” Deputy McGrath told the Taoiseach. “There are serious moral questions for the Government about how it could engage with contractors who have not filed accounts and are not compliant with our laws. The High Court has ruled definitively that Dundrum House Hotel is non-compliant.”
“We know that more than 20 IPAS 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 like this when it is in this category? Continuing to fund this contract undermines the integrity of the Government’s decision-making and shows absolute disregard for the authority of the courts and this country’s planning laws,” he continued.
“We have already seen the loss of 48 jobs here when Dundrum House Hotel closed its doors, and the collapse of a vital tourism and leisure hub that sustained golf, hospitality and community life, and indeed tourism and culture events as well. Let us not forget that when people stood up against this, and for their rights, they were met with a tyranny of force by An Garda Síochána’s riot squad, canine squad and God knows what.
WILL TAOISEACH ACKNOWLEDGE ‘GRAVE WRONG DONE TO PEOPLE OF DUNDRUM?’
Mr McGrath said that he had questions for the Taoiseach continuing: “Will his Government immediately revoke the IPAS contract for Dundrum House Hotel in light of the High Court ruling? Will he confirm that no further taxpayers’ money will be paid under the contract, which has no legal foundation whatsoever?
“Will he 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 to changing how decisions about these contracts are made by the Government?”
The Clonmel TD also asked if the Taoiseach would commit to a full review of “how the contract was awarded, given serious concerns about planning compliance, transparency and the suitability of Utmasta 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 offer that company their business, so what kind of example are we showing? Why was the company deemed suitable for a State contract worth up to €8.5 million annually when all this was known and pointed out by the people and by us as public representatives too?”
In response, Mr Martin said it was his understanding that Dundrum House Hotel had not been operating as a hotel since 2015.
“I understand the first initial use of Dundrum House Hotel was for Ukrainians fleeing the war. The Deputy might clarify that for me. I understand that it had not been in use as a hotel since 2015, which would be about seven years earlier. I think the adjacent golf club and catering facilities are still being used by the public and the community since that time,” the Taoiseach said.
Mr Martin said that Deputy Mattie McGrath was correct that the Department of Justice had entered into a contract in April 2025 with a company called Utmasta Limited to provide international protection accommodation at Dundrum House.
He added that a detailed appraisal process and community engagement had taken place, and that about 190 people are accommodated at the hotel at the moment.
“There was a judicial review into the planning exemption granted by Tipperary County Council to Dundrum House. This was initiated by the local heritage group. I understand that the owners decided not to continue to defend the proceedings,” Mr Martin added.
“The Department is saying, based on the fact that the contract and leases were and still are in place, that IPAS is continuing to use the property. If any action should be required as a result of any court proceedings, this will be addressed by officials as appropriate.”
“That is not accurate,” Deputy McGrath said in response. “The hotel was closed but the Crowe family operated a successful and wonderful business there. I was at numerous weddings and many other events there.
“The golf course and the pro shop were open and indeed the venue was operating as a restaurant and everything else. It was effectively running while the hotel was damaged by fire. The Taoiseach does not seem to get the issue.
‘THE PEOPLE DESERVE BETTER’
“We are dealing with rogue contractors. We pointed out to the integration team – Deputy Michael Murphy and I pointed this out to the Minister – that it was outside the law and that the council gave a section 5 exemption in error. It has conceded that. Now the hotel has gone back for another section 5 exemption, which the council has kicked to An Coimisiún Pleanála. It is just a game of Russian roulette and money for fat cats,” he said.
The TD said that the real problem is that the Government is “paying too much per person who is being housed by IPAS.”
“The Taoiseach is wrong in saying that the Department of Justice gave the contract. It was the former Minister, Deputy O’Gorman, and his Department at the time that ran amok and invited everyone from Timbuktu to Ireland, to come and have their own front door in 30 days or something. This is crazy. The people deserve better here. They deserve a better reply from the Taoiseach. I want the Taoiseach to instruct the Minister, Deputy Jim O’Callaghan, to meet Deputy Murphy and me. We have been trying to meet him to look at this situation urgently,” he said.