O'Rourke told a year ago of rail signal cost problems

The Minister for Public Enterprise was made aware over a year ago of cost overrun problems with Iarnrod Eireann's new signalling…

The Minister for Public Enterprise was made aware over a year ago of cost overrun problems with Iarnrod Eireann's new signalling system. Documents made available this week to the Joint Committee on Public Enterprise and Transport by the railway company's parent, CIE, contradict assertions by Ms O'Rourke's officials that she was unaware of the extent of the problem until the summer.

Opposition politicians have accused her of misrepresenting her position to distance herself from the controversy.

The documents show the cost overrun on the Central Traffic Control system was first raised with Ms O'Rourke by her officials almost a year ago. They also indicate that she was subsequently made aware in February that the project could overrun its initial cost estimate of £15 million by a further £20 million.

A note prepared for Ms O'Rourke in November 1999 warned that problems had "already led to delays and cost overruns". An second internal memo dated February 7th this year referred to "the Minister's request to be kept informed of developments" concerning the problem contract.

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The cost overrun has been blamed on a litany of problems including errors with the original contract and priority being given to laying cables for Esat Telecom.

The documents appear to contradict both the impression given by the Minister and briefings given by her aides as to the extent of her knowledge. The day after the problem with the contracts was raised in the Dail, on October 19th, a spokesman said Ms O'Rourke had been told "earlier this year" about the problem.

Another reliable source close to the Minister said she had received an anonymous telephone call during the summer after which she questioned officials in her Department. She was then told that a report on the overrun had been commissioned by CIE. Ms O'Rourke did not move to clarify either comment.

This week the spokesman said that the Minister had not had any "real facts" about the problem until September 21st.

The Fine Gael transport spokesman, Mr Jim Higgins, said there was now a question of whether Ms O'Rourke had misled the Dail. ail and the public in relation to this matter. I will be raising this issue in the Dail next week." He said he would raise it in the House next week.

Last night the Minister's spokesman moved to try to clarify the issue. "The Department formally informed the Minister in November 1999 of problems with the contract. The Minister is clear that she heard about it from outside sources before that date." Mr Higgins said there was a straight conflict between the Minister's public account of her state of knowledge about the problems with the project and information contained in the documents, which were provided to the committee by CIE. The documents back up verbal evidence given by Ms O'Rourke's senior officials to the Committee last week, he said.

"Two weeks ago the Minister told the Dail she was first made aware of the difficulties with the CIE rail signalling system contract `by outside sources'."

Mr Higgins said the memo "confirms the Minister knew at a much earlier stage of the difficulties and did not bring it into the public domain. She has made titanic efforts to distance herself from this even though it is quite obvious it has all happened on her watch."

Labour party whip Mr Emmet Stagg, also a member of the committee, said it would be "extraordinary" if the Minister had not been informed of the problems with the contract at weekly department management meetings.