asked the Minister for Industry and Energy (a) the date on which his Department became aware of the extent of the cost over-run on building by the Institute for Industrial Research and Standards as reported in the media (details supplied); (b) whether he has ordered this over-run to be investigated; (c) if he will explain how this situation could be allowed to develop; (d) whether he satisfied himself that the fees charged by the architects of the project are reasonable and normal; and (e) whether he will make a full statement on the position, in particular outlining his proposals for preventing a recurrence of uncontrolled over-runs in other State or semi-State bodies.
Ceisteanna—Questions. Oral Answers. - IIRS Building Cost.
43.
The cost over-run came to the notice of my Department in August 1982. At that stage the allocation of £1.276 million included in the 1982 Estimates, which was intended to finance the construction of the building to completion, had been almost entirely expended and a considerable amount of work still remained to be carried out.
Investigations have been carried out and a preliminary report available to me indicates that among the immediate factors which contributed to the over-run by the institute were inaccurate assessment of costs, ineffective liaison between the institute and the building contractor and lack of cost control procedures.
I propose to have a further in-depth inquiry carried out but this will take some little time to complete. I share the Deputy's concern and I intend to make a detailed statement on the matter when the investigation has been completed.
With regard to architects' fees, the information which I have is that the fees already paid to the architect, in relation to the total cost of the project, were in accordance with the appropriate standard scale.
In the past year or so, my Department have intensified the monitoring of expenditure by State bodies generally. I am satisfied that this process should be further intensified and I am considering the areas in which specialised resources available to my Department need to be strengthened for this purpose.
I would like to ask the Minister two questions. In view of the fact that my question was originally put down to the Minister for Finance, would the Minister bring this very gross over-run to the attention of his colleague in the Department of Finance? I would like to invite the Minister to agree with me that no private enterprise about which a history like this could be written would survive for a day in the cold wind of competition.
The answer to both questions is yes. I am very concerned about this matter. I have been concerned in other capacities with the general question of over-run on State projects of this kind where the estimates have been exceeded for reasons which would not be normal in commercial practice. It is a matter of considerable worry to me that this has happened on a few occasions in respect of bodies for which I am now responsible. I take a very serious view of the matter and I am asking my Minister of State, Deputy E. Collins, to look specifically at the circumstances of this case which is the subject of Deputy Kelly's question. He will be able to give it the time and attention which, unfortunately, through other commitments, I am not able to do at present.