Lucinda Creighton (Dublin South East, Fine Gael)
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Question 509: To ask the Minister for the Environment, Heritage and Local Government the number of capital projects which have gone over budget in each of the past five years; the original estimate for each of these projects; the final cost of same; and if he will make a statement on the matter. [39524/08]

John Gormley (Dublin South East, Green Party)
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My Department's capital programmes include responsibility for Housing, Water Services, Environmental Protection, Fire Services, Libraries and other capital projects implemented primarily by local authorities but also by my Department. The scale of these activities, involving many hundreds of separate projects, ranges across social and affordable housing projects, water supply and waste water treatment systems, construction and upgrading of fire stations and libraries, and improvement works at six National Parks.

Funding provided by my Department for capital works is subject to detailed scrutiny at critical stages, including compliance with the Capital Appraisal Guidelines issued by the Department of Finance and value for money principles. Comparison of estimated, interim and outturn costs in any case would not be meaningful without examining the circumstances of every cost revision. These may, for example, involve revisions as a result of agreed additional works or post contract variations, remeasurement of quantities associated with civil works contracts, and price variation clauses. The compilation of the information sought on all projects would involve a disproportionate amount of time and work by my Department including contact with local authorities.

Contracts entered into by my Department and local authorities are now subject to a new form of contract introduced by the Minister for Finance in 2007 to provide greater cost certainty to State authorities through the elimination of cost variables by seeking fixed price outcomes for contracts.