Transport thinking: The Department of Transport has withheld two payments from Dublin Bus for electronic ticketing machines because of difficulties in getting the company to agree to the introduction of a new integrated ticketing system, according to the Comptroller and Auditor General's report.
The Railway Procurement Agency (RPA) was given a mandate to deliver this smart card technology more than four years ago, but the one-ticket system for train, bus and tram still has not been introduced.
Some €9.5 million was spent on the project up to the end of 2005 and the proposed budget has increased from €29.6 million to €42.7 million.
The comptroller said that how the project had been managed had led to the lack of progress and the "substantial" expenditure.
The Department of Transport's accounting officer told him that the "underlying tensions" between the RPA and the CIÉ companies, particularly Dublin Bus, was a contributory factor in the delay.
She said the department had asked the RPA to defer two payments claimed by Dublin Bus for money spent on electronic ticketing machines, in November 2005 and early 2006 in the light of the delays.
The department had initially agreed to both payments but rescinded the first payment pending agreement being reached on the integrated ticketing discussions.
The second payment was rescinded because two reviews of the project were under way.
"She stated that these payments are still outstanding and she would be considering whether to release them in the light of the decision to proceed with the project and progress under the new arrangements now being put in place."
A new board charged with delivering the smart card technology has been asked to report to the Minister for Transport this month and every three months thereafter.
The comptroller asked if any consideration was given to imposing financial sanctions on CIÉ "in light of their perceived lack of commitment to the project".
The accounting officer said the Department of Transport had written to CIÉ in December warning that certain payments associated with the project would be recouped if significant progress was not made this year.