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Mr Thompson said a WAP proposal for a cultural hub at Ebrington had been encouraged by the DCAL 2013 Legacy Fund.
“It now looks like this is all talk and the Waterside will be losing out again,“ said Mr Thompson.
Whilst the scrapping of the Links Festival is an immediate blow, Mr Thompson warned that the very future of WAP itself is now in doubt as neighbourhood renewal functions are devolved from the Department of Social Development (DSD) to Derry City and Strabane District Council.
There is some uncertainty now as to how the transfer of these functions to local authorities by the 2016/17 financial year will play out.
Mr Thompson believes one consequence will be a cut in the fund available by between 10 and 15 per cent.
“We are in a bit of limbo, the board is saying we’re going to have to prepare to wind up,” said Mr Thompson.
“Now we have twenty years of information. What do you keep? what do you get rid of? The transition is going to be key.”
The Sentinel asked both DSD and DCAL for comment. None was available at the time of going to press.