Inexact project costings criticised

The Public Accounts Committee has criticised the failure of various civil service departments and State bodies to cost projects…

The Public Accounts Committee has criticised the failure of various civil service departments and State bodies to cost projects properly, following its latest annual report that highlighted a series of spending decisions which cost multiples of their original estimates.

Committee members said they were also finalising a report on the National Roads Authority, focusing on how the cost of the current roads building project more than doubled to €15 billion.

Yesterday's report also highlighted €6 million in overpayments to GPs for medical card patients who were deceased at the time of the payments, because of "a systematic failure" by health boards to maintain properly the database of medical card holders.

It also criticised the failure to estimate properly the real cost of extending medical cards to those over 70.

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The original estimate for the first six months of the extension was €9 million, but the real yearly cost was €55 million.

The Revenue Commissioners were also criticised for carrying out an insufficient number of audits.

The report questioned the real cost to the taxpayer of a car park at Beaumont hospital that was developed as a joint venture between the hospital and private developers.

Because the car park qualified for tax breaks, the committee was advised that the actual cost to the taxpayer was up to €13 million greater than if the State had paid for the car park. The cost to the Exchequer of each car park space was estimated by the committee to be €55,000.