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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Natural Gas for Limerick City.

Cork–Dublin pipeline cost estimates

Summary

Deputy Barrett questioned why the pipeline contract was about £30 million, far below a mid-1970s estimate exceeding £130 million. The Minister attributed the price to effective tendering and planning, while disputing the earlier figure and crediting An Bord Gáis and Department officials with completing the contract efficiently.

(Clare): With regard to the natural gas pipeline, the contract price is about £30 million. Is the Minister aware that in the mid-seventies the estimates given to the then Minister for Transport and Power was about £130 million? Can the Minister give any reason for the discrepancy between the mid-seventies price and the present one?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

The difference is because my Department and An Bord Gáis Éireann have finally tackled the question of the laying of the Cork-Dublin gas line in an efficient and constructive manner. It is thanks to our interest and involvement in the project that we now have a price for the Cork-Dublin gas pipeline, which is extremely competitive and satisfactory.

Comment on this

(Clare): Is the Minister of State aware that this estimate in excess of £130 million was given by a colleague of his during the life of the previous National Coalition Government in the mid-seventies? The estimate was given by the then Minister's Department and now the contract price has proved to be £30 million. There must be some reason for that vast difference with regard to the advice given to the then Minister.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

I am quite happy to say that it is always difficult to estimate costs at a preliminary stage, but when we came into office and took this matter in hands in an efficient way we got the necessary tenders and quotations. The matter is commencing in an extremely efficient way.

Comment on this

Could the Minister of State tell the House the truth? Did he not go into office and find it was all done and that the figure was there at that time? Perhaps it would be more productive if the Minister of State would look at how it was done and see if it could be applied to other areas of State and at the same time inquire why the huge estimate to which Deputy Barrett has referred was given to his predecessor?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

I have no interest in estimates. I am happy to discuss hard facts. I would not like the occasion to pass without saying to Deputy Colley that I accept that the procedure he initially adopted with regard to the tendering position was a proper one. On receiving all the tenders we narrowed it down and An Bord Gáis Éireann, in co-operation with some officials from my Department, sorted out this contract in a very efficient manner.

Comment on this

I would like to suggest to the Minister of State that I saved the taxpayers £100 million on that project.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

It is somewhat presumptuous of the Deputy to say that because the Deputy is fully aware that the initial estimate was produced by An Bord Gáis Éireann and it was not £130 million. It was more in the region of £90 million.

Comment on this