An overspend of more than £3 billion (€3.586 billion) on big capital projects in Northern Ireland is unacceptable and unsustainable, a new report has said.
Stormont’s Public Accounts Committee has said that current arrangements for delivering large-scale capital projects in the region are “not fit for purpose” and the establishment of an independent oversight body in Northern Ireland must be considered.
The committee has also asked why a series of recommendations it made in a report five years ago have not been fully implemented.
Large-scale capital projects are defined as those estimated to cost in excess of £25 million.
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The report said there were 78 projects managed by Stormont departments between April 2019 and last summer. Many involve large construction work including the new Belfast maternity and children’s hospitals, the A5 and A6 and the Belfast Transport Hub.
Daniel McCrossan, chairman of the Public Accounts Committee, said: “Our follow-up work in this area was prompted by a Northern Ireland Audit Office [NIAO] report in early 2024 which said delays in current projects meant they could cost £2.45 billion more to complete than originally estimated.
“An updated position from NIAO last summer showed that the overspend has continued to rise and is now more than £3 billion over original budgets, an escalation that is simply unsustainable.
“The committee has been raising concerns in this area for years. In 2020, our initial report on major capital projects made 15 recommendations for improvement, relating to accountability mechanisms as well as time and cost overruns.
“A number of those recommendations have not progressed as the committee intended, and not all recommendations were accepted,” said Mr McCrossan.
“Having revisited the major capital projects inquiry in September 2024, we have heard a lot in evidence sessions about ongoing, planned actions and future aspirations but little in the way of real progress and how these projects could be delivered more efficiently and effectively.
“The committee is extremely frustrated by the lack of action taken to address delays and overspends.”
Mr McCrossan said the committee had heard evidence from Jayne Brady, head of the Northern Ireland Civil Service (Nics), as well as senior officials from the Department of Finance; the Strategic Investment Board; the Nics Board and the NAIO.
It has now made a further 12 recommendations.
Cheryl Brownlee, deputy chairwoman of the Public Accounts Committee, said: “Our view is that the current arrangements for delivering major capital projects are not fit for purpose and that the establishment of an independent oversight body in Northern Ireland must be considered.
“A review of leadership and governance is also urgently required. We also want to see an annual progress report published on the delivery of all major capital projects and that the Department of Finance takes the lead role in monitoring this.
“Regrettably, the committee is also repeating its recommendation that Nics urgently addresses the lack of professional and technical skills, to ensure project teams have the necessary capacity and capability to successfully deliver major capital projects.”
The report said that the “continued escalation of cost overruns is unacceptable”.
It added: “In 2015, the Northern Ireland Executive identified seven flagship infrastructure projects as its highest-priority projects which were allocated funding over a five-year period, rather than the usual single-year budget allocation.
“At the time of the 2024 NIAO report only one of the Executive’s flagship projects had fully completed, with a second having completed by the time of this committee report.
“During the evidence session the committee heard much about ongoing and planned actions, along with future aspirations. However, there was little evidence of any impactful action taken to date which has generated tangible improvements to the delivery of major capital projects in Northern Ireland.
“Given the time elapsed since this committee’s previous report on this issue, this lack of positive change is unacceptable and the committee is extremely frustrated by the lack of action taken to address ongoing delays and cost overruns.”
– PA
