asked the Minister for Industry and Commerce if, as he stated in reply to a question on 25th October, the six diesel electric locomotives which the General Manager of Córas Iompair Éireann stated at Cork on 2nd October it was proposed to purchase at a cost of £90,000 each, are the same locomotives which were ordered in 1946 at a cost of £80,000 each, he will explain why it is now proposed to pay £10,000 each above the contract price.
Ceisteanna—Questions. Oral Answers. - Purchase of Diesel Locomotives.
I am informed by Córas Iompair Éireann that, when first computed, the estimated cost of the six diesel-engined passenger locomotives which were ordered in 1946, based on the tenders received and allowing for the work which would have to be carried out at Inchicore, amounted to £474,440, an average of £79,073 per locomotive.
The contract for the supply of the locomotives contains a rise and fall clause and increased costs in wages and materials are payable to the contractors in accordance with this clause. As a result of increases in wages and materials both here and in Britain the estimated final cost for the six locomotives amounts to £530,350, an average of £88,392 per locomotive.
Am I correct in assuming that the higher price is due to the delay in accepting delivery?
A clause in the contract provided for an increase in payment in respect of any increase in costs, either in wages or material. The increased cost in this case is due to a rise in the cost of material.
And the delay in delivery?
I have no information as to that.
asked the Minister for Industry and Commerce whether he is aware that the General Manager of Córas Iompair Éireann stated at Cork on 2nd October that Córas Iompair Éireann proposed to purchase in the U.S.A. 20 diesel rail cars at a cost of £15,000 each, and if he will state whether this statement is correct.
I am not aware that the statement by the General Manager of Córas Iompair Éireann at Cork on the 2nd October was in the terms indicated in the question. The general manager stated that it was proposed to purchase 20 diesel rail cars and I am informed by Córas Iompair Éireann that the order for the mechanical part of these cars has been placed in Great Britain.