Bernard Allen (Cork North Central, Fine Gael)

I thank the Chair for the opportunity to raise an important issue, namely the cost over-runs in the preparation and production of Irish passports and the payment of royalties to contractors for each passport issued. This is another example of the taxpayer forking out for the golden fleeces that we have seen so many of in recent times. There have been at least 13 major cock-ups in public expenditure on capital programmes, the largest of which is the personnel, payroll and related system, PPARS, costing €150 million to date, while the original estimate was €8.8 million. I do not have sufficient time to go through all 13 examples, but on the passport system, the Minister must answer some questions.

Why was the provision of the automated passport system so much more expensive than had originally been estimated? The Minister must also explain why a royalty must be paid by the taxpayer every time the new system is used. According to the 2004 annual report from the Comptroller and Auditor General, the costs for the provision of the new automated passport system, for which a contract was signed in late 2002, was €21.819 million. This cost is 60% higher than that estimated only two years earlier, when a figure of €13.559 million was recommended by the Department of Foreign Affairs. While the development of new technologies in the period from 2000 to 2002 may account for some of the increase in cost, the total price of the contract is still significantly higher than anticipated. The Minister must clarify the situation and outline the reasons for the large increase in costs.

In addition, the contract for the automated passport system provided for the exclusive purchase of blank passport booklets and data pages from the contractor and payment of a royalty for each passport issued. Based on an output of 650,000 passports, the cost to the taxpayer under this specific arrangement is approximately €4.76 million per annum. For each passport produced, the contractor receives more than €7 from the State. Having spent almost €22 million on this new automated passport system, the Minister must clarify why the taxpayer must also pay a royalty to the contractor each and every time the system is used. I also wish to know who owns the intellectual property rights to the new automated system and whether this matter was dealt with in the contract. Taxpayers have paid for the development of a new system. Will they see any dividends if this system is used elsewhere?

Two other issues are detailed on page 80 of the Comptroller and Auditor General's report. First, legal fees rose from €47,000 to over €294,000, a seven fold increase. Second, it was estimated that a minimum of 40 days assistance would be required for project management. A fixed price per service day was required and the per diem rate varied between €480 and €1,450, depending on the particular consultant engaged. At the time of the audit carried out by the Comptroller and Auditor General, some €423,000 had been paid for these services which, at the maximum rate, would represent 290 days work by consultants.

These are serious questions and I ask the Minister to reply to each point raised and give an explanation to this House for the gross misspending of hard earned taxpayers' money.

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