An inquiry into cost overruns in an Iarnród Éireann project has heard evidence relating to a consultants report. The Joint Oireachtas Sub Committee was told that the report on Iarnród Éireann's mini-CTC signalling system was given to CIÉ in March, 2000, but only given to members of the board the following July.
Earlier, the former Secretary General of the Department of Public Enterprise, John Loughrey, told the committee that there was an element of "wishful thinking" within CIÉ in relation to the mini-CTC project.
The core of the inquiry relates to mini-CTC, the new rail signalling system. It was supposed to cost Iarnród Éireann £14m, and to be completed by the end of 1999. However, latest estimates put the cost at £50m, and while most of the cable has been laid, not one of the 28 stations involved has been fitted out.
The current Secretary General, Brendan Tuohy, told the hearing that quarterly reports from CIÉ on the progress of the mini-CTC system had been sent to his department.
Mr Loughrey said that it must have been apparent to CIE that the project was in trouble in early 1999, and that there might have been an element of wishful thinking that it would come in on budget. Mr Loughrey said that the quarterly reports provided did not provide a sufficient early warning system.
Labour Deputy Pat Rabbitte asked the current chairman of CIÉ, John Lynch, if it was true that what he described as a potentially explosive report from Price Waterhouse Coopers on the project had been delivered to the company on 18 March last year.
Dr Lynch said that it had, but that he had not seen it until July, and that it had been discussed by the board at the September meeting.
The Dáil sub-committee will examine the tendering process, that awarded the contract to Italian firm Sasib, in association with an Irish company, Modern Networks Limited. It will also look at a separate deal with Esat Telecom, under which phone cables were supposed to be laid at the same time as the signalling system.
However, in the event, the Esat work went ahead first, which meant the mini-CTC cables then had to be laid manually, adding greatly to costs.
Up to 120 witnesses may be called, including former ESAT Chairman Denis O'Brien, former ministers Michael Lowry and Alan Dukes, as well as the current Minister for Public Enterprise, Mary O'Rourke. Four senior Iarnród Éireann executives, who left the company to join MNL, are also likely to appear.
The committee hearings are being broadcast live on TG4 every morning this week and on RTÉ1 television today and on Thursday afternoon. The hearings are expected to run for at least three weeks.
