THE GOVERNMENT’S plans to alleviate chronic overcrowding across the prison system have suffered a major setback following the breakdown of talks with the consortium selected to build the new Thornton Hall super prison.
The two-year negotiations were formally ended yesterday.
Officials from the Irish Prison Service and Department of Justice met representatives of the Leargas consortium, including builder Bernard McNamara, and told them their costs were too high.
Minister for Justice Dermot Ahern informed Cabinet the process was being discontinued.
The Irish Timesunderstands talks on final costings for the 2,200 berth prison in Kilsallaghan, north Co Dublin, have been near collapse for weeks. The facility would have replaced Mountjoy Prison, Dublin.
According to justice sources the consortium quoted costings 30 per cent higher than when shortlisted three years ago. Sources said Leargas argued the funding needed for the project was now much more costly.
A statement from the prison service and Department of Justice said the “significant increase in the cost of finance” meant the Leargas quote was unaffordable.
Leargas said it was disappointed at the Government’s “decision to abandon” Thornton Hall saying it had put three years “work and expense” into the project. It added the project was being discontinued on an affordability basis rather than value for money reasons.
The project will now be retendered. This will likely take at least two years. But Pat Rabitte the Labour Party spokesman on justice said “What it means is that €41.5 million of tax payers money has been spent on what has all the appearances of being another white elephant.”
Almost every prison in the system is seriously overcrowded and the prison population is growing faster than ever.
Mr Ahern said overcrowding would be addressed by providing 400 additional spaces at existing facilities over the summer.
The need to replace Mountjoy and the “critical need” for more prison spaces was well documented. “What is now needed is a new project which reflects the current economic and fiscal realities,” he said.
The Leargas consortium comprises Michael McNamara Construction, Mercury Engineering, Barclays Private Equity and GSL, a prisons operator. It was confirmed as the preferred bidder in May, 2007 for the public-private partnership (PPP) project.
Leargas would have paid the construction costs and would have provided services once the facility opened.
The Irish Penal Reform Trust said it was time to rethink building expensive prisons.