Derek Keating (Dublin Mid West, Fine Gael)
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Question 18: To ask the Tánaiste and Minister for Foreign Affairs and Trade the justification of expenditure to decorate the Irish Embassy in Ottawa, Canada; if his attention has been drawn to the fact that the initial estimate was €3 million and that tenders were signed off for this figure and that the current cost is in excess of €9 million and is not completed after initially commencing four years ago; the person who agreed this initial contract; if he will stop any further expenditure; and if he will make a statement on the matter. [28146/11]

Eamon Gilmore (Dún Laoghaire, Labour)
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The Ambassador's Residence in Ottawa was acquired by the State in 1960. Only modest investments were made in its upkeep over the years and it had long been in need of substantial refurbishment. In 2006, my Department was advised that total renovation was required to address a wide range of serious structural and maintenance issues. Some of these problems were aggravated by the long term cumulative impact of the severe local climate. A number of extensions to the property were found to be structurally flawed and had to be demolished and replaced. Large quantities of asbestos were discovered in the building and all services including electrical, heating and air conditioning had to be renewed or upgraded to conform to contemporary local legal codes.

The alternatives, including relocation, were examined. However, the necessary renovations mitigated against the sale of the property. At the time, before the onset of the current budgetary pressures, it was concluded that refurbishment and retention was the most cost- effective option.

The decision was taken to renovate and upgrade the property so it could serve as a multi- purpose "Ireland House" type amenity to enhance the Embassy's capacity to promote all aspects of Ireland especially trade and culture and provide conference and presentation facilities for use by State Agencies, Irish companies and artists.

The renovated premises represent a valuable asset for the State and a platform for the consolidation and enhancement of our important relationship with Canada. Canada is the world's seventh largest economy and a member of the G8. It is one of Ireland's top 20 trading partners with total trade of over €1.5 billion and it has been identified as a high-potential market under the Strategy and Action Plan for Irish Trade, Tourism and Investment to 2015. Some 4 million Canadians (12% of the population) claim Irish descent.

I am advised that the project was rigorously monitored and all tender and approval procedures were strictly adhered to. Tenders were sought locally on an open competitive basis and the contract was awarded to the lowest bidder in accordance with normal procedures.

The cost of the project was estimated at €5.2 million in 2008, including preliminary investigations, professional fees, excavation, demolition and construction work. The project was properly authorised by the then Secretary General my Department in 2008 and all expenditure was duly sanctioned by my Department in accordance with prescribed procedures. Work commenced that year and was completed in 2009. The final total demolition and construction cost (including fees) was €6.2 million. The increase in cost over estimate was due to technical problems which arose during the construction related to the poor condition of the house.

I understand that the refurbishment is fully complete and that no further work is outstanding.