asked the Minister for Finance the total original estimated cost of the restoration and development of the Royal Hospital, Kilmainham; the total money spent so far; the total estimated cost of work still to be done and the total estimated cost of architects' fees arising from the restoration and development; when it is expected that the work will be completed; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers (Resumed). - Royal Hospital, Kilmainham.
9.
The original total estimated cost for restoration works on the basis of which authority was granted to place a contract was £11.6 million including fees — 1980 prices. Earlier proposals for the provision of a new conference building in the hospital grounds were deferred in 1981 due to the cost involved. As a consequence, the erection of an energy centre to serve the restored building instead of that previously intended to serve both the restored building and the conference building became necessary and the total original estimate for this was £1 million — 1982 prices. It was built under a separate contract.
The two contracts were completed in 1984. The total amount spent to date on the combined restoration project and energy centre, including for inflation, authorised extras and variations, fees, furnishings and security is £19.88 million.
It is not the practice to make public individual fee payments, but the total estimated sum payable to all the consultants engaged for these projects including staff engaged for site supervision would be about £3.3 million.
The main work now to be done is the fitting out of three of the four wings of the building for the uses announced by the Government in November 1984, that is, primarily for the National Museum but with some space also for cultural organisations or small self-contained Government agencies or commissions. It is not possible at this stage to give a proper estimate of cost or to say when the works will be done.
One of the wings of the building, that is, the prestigious north wing which contains the great hall, chapel and master's quarters has been in use for State and non-State functions since the Government announcement of November 1984. It is included also in a tour available to the public visiting the Chinese Warriors exhibition which has been mounted in part of the other wings of the building.
Would the Minister indicate if he is satisfied with the difference between the contracted cost of somewhere around £12 million for both the energy centre and the building itself and the present cost of almost £20 million — a gap of £8 million over a matter of three years?
There is a reasonable explanation for the difference. I do not think there is any doubt about that. The original estimate was £11.6 million. The new energy centre was an extra £1 million, which made £12.6 million. Price variations in building materials during the period of the contract amounted to over £4 million. Extra works which came to be done amounted to £2.5 million. I am very glad to say that the restoration of Kilmainham has got international recognition as being a wonderful job. In restoring old building such as this, you very often find expenses which could not have been foreseen, such as for stone replacement, slate replacement, timber replacement, dry rot and so forth. These can only be brought to light when the building is opened up. The extra cost can be justified.
Would the Minister agree that the professional fees at 16.5 per cent are totally abnormal and has he any proposals to ensure that the State will not be ripped off in this fashion in future?
Everyone knows that professional fees are calculated on a percentage basis. I know that the Minister for Finance is examining this matter and I am not prepared to comment until his examination is complete.
He is examining everything and doing nothing.
(Interruptions.)
Has there been any change since Deputy O'Kennedy was Minister?
On a point of information, the Minister of State does not seem to know that the Minister beside him has been in office for the past three years.
I first heard in the Solicitors' Debating Society long ago that there is no such thing as a point of information. We had better get that straight. I am calling Deputy De Rossa.
Regardless of the fine work which has been done at the Royal Hospital in Kilmainham, the Minister will agree that £20 million is a substantial amount of public money. I would ask the Minister to refer for examination by the Committee on Public Expenditure the methods by which the contracts were given out and the method by which the price variation clauses are included in such contracts. In this case the amount was £4 million.
It has already been done. The cost variation provision is part of every contract, private or public. A contingency sum is usually provided for in private contracts but that is not allowable in Governmental contracts. It is a system which has existed for many years but if there is a better way I would be delighted to examine it.