MINISTER FOR Justice Dermot Aherninsisted there was a difference of "hundreds of millions of euro'' between the original price and what was finally suggested in the building of a new super prison in north Dublin.

Both the Minister and Taoiseach Brian Coweninsisted the Thornton Hall project would go ahead, despite the breakdown in talks with the consortium selected to build it.

“We must be given some credit, in that if we had responded and agreed to the type of costs, namely, a 30 per cent increase, people in this House and outside would, rightly, query, particularly in the context of the economic situation generally in this country, why we would go ahead with such a project,’’ Mr Ahern added.

“We will be looking at all the options in the coming weeks.’’

Mr Ahern said they might look at perhaps phasing it in over time.

Mr Cowen said he wanted to say “in the strongest terms’’ that the Government was fully committed to replacing Mountjoy Prison with Thornton Hall.

The Government would proceed with the project, he said, adding that it would be on the basis of a proposal from Mr Ahern in the coming weeks.

“There will be 400 extra places available to come into commission, in the meantime, at Wheatfield, Castlerea and Portlaoise,’’ Mr Cowen added. “They are already built and should be ready to come on stream during the course of this year.

“It is important that we continue with a prison-building programme.’’

Mr Cowen said it was clear to him that they needed to replace the Mountjoy complex in a manner that recognised the market conditions in the building industry, the changed economic circumstances and, ultimately, protected the taxpayers’ interests.

“That is the basis for the decisions which we have taken,’’ he added. “It is the change in the marketplace, in terms of the cost of financing, that has been the main issue here, and I want to make that point.’’

Fine Gael leader Enda Kennysaid that the hallmark of the Taoiseach's period as minister for finance, and the Government of the time, had been to waste money.

“The Government spent €60 million in e-voting machines, €200 million on the famous Ppars computer system and €100 million on consultancy fees and the clearances of the Abbotstown development,’’ Mr Kenny said.

He added that with the €360 million involved, the Government could have built a major portion of the national children’s hospital on a greenfield site, or 100 schools.

It could have dealt with many of the State’s infrastructural requirements, Mr Kenny said.

Mr Cowen said that Ppars had been commissioned by a Fine Gael minister, Michael Noonan.

“That was when that issue started,’’ he added.

“In relation to the question of money that could go to a children’s hospital, I think that Fine Gael’s proposal was that we should build two.’’

The real question to be answered, he added, related to the decision taken by the Irish Prison Service to break off negotiations with the preferred bidder relating to the design, building, maintenance and financing of the Thornton Hall project.

Labour leader Eamon Gilmoresaid that the project had so far cost €41 million, including the site, the cost of buying up the extra land for the road, professional fees and siteworks.

Some €26 million was paid in 2007 for the two-acre former cash-and-carry site adjoining Mountjoy in anticipation that the prison would close down and the area be redeveloped.

Mr Cowen repeated that the Government intended building the new prison.