Ahern admits overpayment in computer deal

Dail report: Taoiseach Bertie Ahern has conceded that too much money was paid to consultants in the development of the controversial health service computer system, which Labour described as a "monumental cock-up and a Niagara of waste of taxpayers' money".

Mr Ahern said setting up the system, which began in 1998, had not been handled well, that consultants had been overused, "excessive costs" had been paid to Deloitte & Touche, but the Health Service Executive should "continue to try to get it right and use money correctly. That is the right thing to do".

However, last night Tánaiste Mary Harney, said she understood that the Health Service Executive would today suspend the implementation of the system pending a complete evaluation.

Like the Taoiseach, she also criticised the extraordinary and excessive amount of money paid to outside consultants. She condemned the "jumble of waste and coherence" that the 11 health boards had produced.

For the second consecutive day the Taoiseach faced an Opposition onslaught over the system which had cost €116 million up to the end of last year and is expected to cost a further € 56 million to complete, but is only used by some 37,000 of the health service's 140,000 full- and part-time employees. Fine Gael leader Enda Kenny said the system "patently did not work" and asked "where were the systems to protect the taxpayer in respect of the consultants brought in to advise on how this should operate and who have been paid €50 million".

He said the review should cover all aspects from the moment the project began, and he asked would it "find out who were the experts brought into this country from outside on a regular basis, some from as far away as South Africa".

Labour leader Pat Rabbitte said that "the only thing more breathtaking than washing €160 million of taxpayers' money down the toilet bowl was the breathtaking, contemptuous, disingenuousness and dishonesty of the Taoiseach's response" in the Dáil on Tuesday.

He asked: "How is it that no Minister in your Government ever takes responsibility for anything? How is it that you cannot come into this House for a change and admit there has been a monumental cock-up, a Niagara of waste of taxpayers' money."

He blamed former minister for health Micheál Martin, and said that "while this is one of the biggest cock-ups, the Minister responsible, deputy Martin, is being photographed somewhere".

He added that the Tánaiste "came in and said the Government would puts its hands up if it finds it is wrong.

"She has not been able to take her hands down since she took over from the former minister deputy Martin. It is one disaster after another."

Both Fine Gael and Labour leaders called for refunds from the consultants for the "botch job".

Mr Rabbitte said it would be more appropriate to call consultants Deloitte & Touche "Delighted and Touche because they must be delighted with the kind of money they raked off from the Exchequer. Will any action be taken by the Government against the consultants brought into the project and given €50 million? "

The Taoiseach said a letter from the Department of Finance stated that it believed the costs for the system were excessive, "that Deloitte & Touche was being overused and that it would have been better if staff had gone in". That however "is not to say this entire system is a waste of time and that they should undo what they have done.

"That is a different issue. I do not believe they should do so."

Mr Ahern said "they have not done it very well to date, but they should continue to try to get it right and use money correctly. That is the right thing to do."

He stressed that they could not "have a manual payroll system for 140,000 individuals".