asked the Minister for Local Government if he is aware of the considerable concern in Cork city about the increase in the original cost of the NBA project of from £6.3 million in April, 1968, to approximately £8.2 million at the approximate half-way stage of this contract; and if he will comment on the position now arising in respect of local rates subsidy, etc.
Ceisteanna — Questions. Oral Answers. - Cork NBA Project.
93.
I am aware that concern has been expressed regarding the revised estimated cost of this project. The figure of £6.3 million was an estimate of cost prepared originally by the city manager on the basis of information available to him in April, 1968, before the contract was signed. At that stage, the layout plans for two of the major sites concerned had not been determined and the contract provided for adjustment of the contract sum when these plans were finalised. The difference between the figure of £6.3 million quoted by the Deputy and the current estimated cost of £8.13 million approximately is accounted for mainly by these adjustments, by the estimated effect of the substantial increases in wage rates and materials prices since the date of the contract and by the cost of general variations, adjustments and agreed extras to the contract such as, for example, public lighting.
This project will provide an exceptionally large number of dwellings for Cork Corporation within a relatively short period. It is inevitable in the circumstances that it will give rise to a substantial impact on the assistance from rates towards the relief of the rents of the new dwellings. State subsidy will be at the maximum rate which I am authorised by statute to pay, of up to £106 a year for a house and £153 a year for a flat, for up to 50 years.