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Dáil
‹ Ceisteanna — Questions Oral Answers - NET Operations.

Marino Point plant cost escalation

Summary

The Minister said Marino Point’s estimated final cost was £137.3 million, 116% above the first detailed estimate. Quinn argued workers were not responsible for the increase, which the Minister confirmed, while he could not comment on the contracting arrangements.

asked the Minister for Industry, Commerce and Tourism the estimated original cost of the NET Marino Point plant; and the percentage increase in cost between the original estimate and the actual cost of the plant.

Comment on this
Denis Gallagher Mr. D. Gallagher Fianna Fáil

The Government took the original decision to proceed with NET's Marino Point plant on the basis of an estimated total cost of fixed assets of £42 million. However, when NET subsequently made allowance for costs other than fixed asset costs — for example, pre-production expenses and interest payments, working capital and cost escalations, the overall cost of the project was put at £63.5 million, which the company regard as the first detailed estimate. The final cost of the Marino Point plant is estimated at £137.3 million, representing an increase of 116 per cent on the estimate of £63.5 million.

Comment on this

Is the Minister aware that considerable, sustained charges were made on the trade union movement as being uniquely and virtually exclusively responsible for the escalation of costs of 116 per cent? In view of the answer that he has now given to the House, will he undertake to clarify through the GIS that the trade union movement and the workers on the site at Marino Point in no way contributed to the increased costs as they were charged with doing?

Comment on this
Denis Gallagher Mr. D. Gallagher Fianna Fáil

A number of factors have been mentioned in relation to the escalation of costs. I doubt if there is anything further I want to add.

Comment on this

Would the Minister not agree that, on the basis of the figures he has now given to the House, if anybody is to be charged with neligence or irresponsibility in the increase of costs, it is the management of NET when the estimate went from around £40 million as a sketch price to £63 million before the work started, and that labour on site costs can in no way be held responsible for that kind of mistake? Will the Minister, in some way within the responsibility of his Department, clarify that matter because workers in the Marino Point area have been blackguarded in this regard by informed opinion which has emanated as a result of lack of statistics?

Comment on this
Denis Gallagher Mr. D. Gallagher Fianna Fáil

It is true that the workers would not be involved in the figures that the Deputy has referred to.

Comment on this

In the light of the enormous escalation of costs, is the Minister satisfied that, because of the method of contract used and the giving of contracts and so on, every effort was made to get the costs down to a minimum?

Comment on this
Denis Gallagher Mr. D. Gallagher Fianna Fáil

Everybody is concerned about the costs. The Minister has made public comment on this. I cannot comment on the other part of the Deputy's question because I do not have any detail in relation to how the contracts were arranged.

12.

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