Martin Cullen (Waterford, Fianna Fail)

Before outlining the measures taken to strengthen cost estimation and control, I will comment on recent coverage of cost overruns on individual projects based on data contained in an appendix to the recent Committee of Public Accounts report. This appendix compared the cost of some projects completed in the years 2000, 200I, and 2002 to pre-construction estimates. I understand the original scheme estimates used in the appendix date back to 1996. This comparison fails to take account of inflation between the date of the original estimate and the year of construction or of project changes in the intervening period. It is as valid as comparing the price of a new house today with the price charged in 1996.

At its simplest level, the comparison fails to take account of the remarkable economic progress enjoyed by Ireland since this Government was first elected to office. I need not remind Deputies of the increase in incomes, the growth in jobs and the higher value of investment. At a minimum, the original scheme estimate should be adjusted for inflation and, if possible, for changes to project scope. Adjusting the total figure in the appendix for inflation alone, using the Comptroller and Auditor General-derived inflation factors for the period, would, I am advised, give a total estimate of €832 million for the projects involved instead of €562 million and reduce the cost overrun from 75% to 18%.

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