Oireachtas Joint and Select Committees

Thursday, 7 March 2019

Public Accounts Committee

Oversight and Implementation of Capital Projects and the Role of Public Officials on State Boards: Department of Public Expenditure and Reform and the Office of Government Procurement

9:00 am

Photo of Marc MacSharryMarc MacSharry (Sligo-Leitrim, Fianna Fail) | Oireachtas source

Okay. So that we are absolutely clear for the people watching at home, for all of our organisational oversight and reviews, nobody knows what the price will be because if construction inflation performs broadly in line with profile of experts such as AECOM Ireland and the Society of Chartered Surveyors Ireland, we can chuck it down. BAM will be in a position to renegotiate aspects of price because of construction inflation so in terms of €1.7 billion, we may as well have said €900 million because it will be higher, and it is likely to be significantly higher.

In terms of the contract, I would like to know - and the public are entitled to know - whether it is an annual construction tender inflation rate or a Dublin-based one. These self-same expert groups suggest that Dublin could be performing up closer to 10% and 12% in terms of tender inflation whereas nationally it might be an average of 7% or 7.5%. Either way, the public, to this day, for all the facts we have been provided with, are being sold a pup because nobody knows, least of all Mr. Watt, because of this? I have one final question.

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