The Office of Public Works (OPW) has been castigated by the Comptroller and Auditor General (C&AG) for its role over more than 20 years in a yet-to-be-built children’s science museum, which may end up costing the State in excess of €70 million.
First proposed in the 1990s, the project led to the OPW reaching an agreement in 2003 with a registered charity, Irish Children’s Museum Limited (ICML), to build a “world class children’s science museum”. ICML trustees include Ali Hewson (wife of U2’s Bono), Prof Luke O’Neill of Trinity College and barrister Michael Collins.
It was envisaged that the centre could be developed without the need for direct exchequer funding to cover the capital costs.
Protracted delays have meant much changed market conditions for interactive facilities aimed at children, with some having opened and subsequently closed, “indicating challenges in sustaining such ventures”, said the C&AG.
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Separately, Explorium, a privately funded interactive science and sports centre, has been operating in Sandyford, Dublin, since 2018, featuring about 300 interactive exhibits focused on science, technology, engineering, the arts and maths.
“Given its scale, facilities and established presence, the continued operation of this enterprise may limit the demand for another similar attraction in Dublin. The operation of this privately funded enterprise also raises the risk of a State aid challenge,” the report warns.
The State has incurred costs of more than €4.2 million to date on the project, including €563,000 in legal costs.
The original lease with ICML indicated it would cost €14.3 million at the proposed Heuston Gate development on State-owned land in Dublin. The OPW planned to sell the site near Heuston Station to a developer.
As a condition of sale, the developer would build the museum on part of the site at no financial cost to the taxpayer. The intention was that the charity would then be responsible for operating the museum.
Planning permission was granted, but the construction sector collapse around 2008 ended the prospect of the developer buying the site and building the centre. The OPW looked for a way to get out of its contract, but under the terms of the original agreement, it had a legal obligation to deliver the centre.
Under a new lease agreement in 2013, it was agreed to build the facility adjoining the National Concert Hall on Earlsfort Terrace; more than double the size of the original proposal – with an estimated cost of €36.4 million.
In 2018, the Department for Culture and the OPW sought to bring a memorandum to government highlighting the need for State funding to progress the project.
However, the Department of Public Expenditure said it should not proceed for various reasons, “including the absence of a cost-benefit analysis as required under the Public Spending Code”, the report notes.
Following arbitration proceedings brought by ICML, the OPW was required to apply for planning permission, obtain tenders and pre-qualify contractors by November 2022. The findings compel the OPW to proceed with the construction, the report adds. While planning was obtained, the IMCL wrote to the arbitrator in July “noting little progress had been made by the OPW”.
“Given construction cost inflation, the project to which the OPW appears to be committed is likely to cost in excess of €70 million, but has not been subject to a capital appraisal process,” the C&AG concludes.
“The OPW should not have entered a formal commitment in respect of the science centre. It also did not have the authority to agree to the lease without a specific Department of Finance sanction for the proposal,” it adds.
Meanwhile, the comptroller’s report also indicates serving Ministers and Ministers of State are facing liabilities of about €5,200 each on average following a review of their pensions and pension contributions.
It states that 32 Ministers collectively had a net liability of €167,649.
The report also found that one in 12 vets whose work on TB testing was inspected last year were sanctioned for irregularities.
