Consultancy services spending is to trip

THE Department of Transport, Energy and Communications is set to spend £4

THE Department of Transport, Energy and Communications is set to spend £4.5 million on consultancy services next year, a rise of almost 300 per cent on this year's figures.

CIE's subvention is to rise to £105 million, a rise of 5 per cent for the loss making group.

Spending on "consultancy services" will rise from £1.15 million to £4,503,000. A Department spokesman said a substantial portion - £2 million relates to consultancy being carried out for the new peat burning station for the midlands.

An independent consultancy will run the competition to build, own and operate the new power station. The ESB will be able to enter the competition as will some Scandinavian companies.

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The Government hopes to get EU backing of £25 million for the station, which will cost £100 million to build. Bord na Mona will not be allowed enter the competition under EU competition legislation but it will provide peat for the station.

Around £900,000 will be spent on consultancy work associated with the EU Operational Programme for Transport. About £500,000 will be spent on consultancy fees associated with the Costs and Competitiveness Review in the ESB.

This programme is aimed at streamlining the ESB and will result in substantial restructuring and savings in the state energy supplier.

The Department has reduced its financial provision for an interim Telecom regulatory agency to be established next year to oversee changes in the telecommunications industry.

In 1996 it had allowed £250,000 to set up the office. This has been reduced to £200,000 in the Estimates.

The Department is one of the largest Government departments encompassing a wide variety of areas, from mining to transport. Although spending will be up in many areas, there will be a number of savings. Overall spending is set to rise slightly to £146 million.

One area that will see a substantial reduction in costs is spending associated with work on Telecom's proposed strategic alliance with a Dutch/Swedish consortium. Spending is expected to be reduced from £3.37 million this year to £1 million in 1997.