Iarnrod Eireann's managing director, Mr Joe Meagher, defended his actions yesterday at the inquiry into the £36 million overrun on the company's rail signalling project.
The overrun, from £14 million, left Mr Meagher "very worried", but he believed he took "all the right actions at various stages".
Two factors underlined his evidence to the subcommittee of the Oireachtas Joint Committee on Public Enterprise and Transport, which also wants to explore the construction of a telecoms system on the railway for Esat.
First, Mr Meagher observed that the development of the mini-CTC signalling system took place at a time when power had shifted to CIE from Iarnrod Eireann, its rail operating company.
Second, he said the company was "on its knees" financially when the signalling system was planned. The company had tried to do "too much with too little", and low investment led to serious concerns about safety on the railways. Attempts to catch up raised signalling costs.
A committee member, Mr Noel O'Flynn TD, accused Mr Meagher of "presiding over" the overrun, though the question was dropped when CIE's counsel, Mr Eoghan Fitzsimons SC, intervened demanding "fair play".
The movement of power to CIE contrasted with the autonomy given to Iarnrod Eireann in the period 1987-95. Sources say this created certain tensions between CIE and its rail and bus companies. The impact of such tensions on the relationship between Esat, CIE and Iarnrod Eireann is likely to be explored by the inquiry. It has heard that the Esat system, which is complete, was prioritised over the mini-CTC, which is still incomplete.
Mr Meagher told the inquiry he had voted for a package to complete the signalling system that would have brought its cost to £58 million. The company was now developing a plan to complete the system in-house, though Mr Meagher would not speculate as to its possible costs.
On the shift in power, he confirmed that a decision to put the mini-CTC project to CIE's board before it was put to directors at Iarnrod Eireann was "unusual". In a statement to the inquiry, he also said a capital monitoring group established by CIE's director of programmes and projects, Dr Ray Byrne, "effectively replaced the process of formal reports on capital projects to the CIE board which ceased in 1995".
Dr Byrne was appointed after the transport group advertised for "six of the best" in 1995 to fill its most senior management positions. In evidence this week, he said the "six of the best" description "wasn't necessarily conducive to bonding the new management with the existing management". He also revealed that he worked as a part-time consultant to Esat while working as a consultant to CIE, when he resigned his full-time post.
CIE's chief financial officer, Mr Jim Cullen, said he was proud of his record at the group. Mr Cullen said his job was to monitor expenditure, but not costs.
Mr Cullen said he had been advised in 1995 by CIE's then chairman, Mr Brian Joyce, to appoint Mr Lesley Buckley as consultant to the group.
After he left CIE, Mr Buckley became acting chief executive at Esat, and negotiated its deal with CIE. He said this week that Mr Joyce contacted him by telephone.
Mr Cullen was not aware of Mr Joyce's telephone call.