Limerick companies earn over €30m for operation of Direct Provision centres

THREE Limerick companies have made more than €30m from the government for the operation of Direct Provision Centres in the city.

Figures released this week have shown that Birch Rentals has earned more than €7.5m to operate Hanratty’s Hotel in Glentworth Street, a facility exclusively used for asylum seekers, while Westbourne Holiday Hostel Ltd, which ran a Direct Provision centre earned €15.7m from 2001 to its closure in early 2017.

And a third group, the Southside Partnership took home €10.4m for operating Clyde House in Alphonsus Street between 2001 and 2010. This facility was later used by homeless people suffering from chronic alcoholism.

Limerick City TD Maurice Quinlivan described the set-up of Direct Provision Centres as “a cash cow for those private companies who operate within it.”

“When we look at the amount spent on these centres each year and it is nothing short of astonishing,” the Sinn Fein man added.

Ireland’s Direct Provision set up has often been the subject of controversy, with many human rights organisations, politicians criticising the conditions for their occupants.  Issues around health, hygiene and civil and human rights have been raised.

"It is not fit for purpose and should be replaced with a more humane, human rights compliant system,” said Mr Quinlivan, “The system is completely broken. It is a system which effectively warehouses those seeking asylum in this country for prolonged periods of time. F amilies are left in limbo while the system that is supposed to assist them does nothing but fail them.”

The biggest earner from Direct Provision facilities in Limerick was the Westbourne Holiday Hostel Ltd.

The facility at the Dock Road, which housed 64 asylum seekers, was closed down in early 2017 over health and safety concerns. Between 2001 and that January, the firm had secured €15.7m.

The Department of Justice at the time stated the measure was taken after requests that health and safety standards be met were ignored.

Birch Rentals, which operates Hanratty’s Hotel, is a company controlled by members of the Ryan family.

Registered to the Old Creamery in Drombanna, it is headed by well-known Limerick businessman JP Ryan, who formerly owned Ted’s Nightclub.

The information released to the Irish Examiner showed another local businessman Peter Madden received €2.2m for operating the Barrington’s Lodge Hostel from 2000 to 2002.