A report on the issue from the Office of Public Works (OPW) shows almost €3,000 spent on archaeology services — while quantity surveying for the well-appointed stand came to nearly €11,000.
The cost of the manufacturing, supplying and installation of the covered shelter and bike stand came in at more than €120,000.
A study has shown average daily occupancy by 4.5 bikes, whereas there is a capacity for 36.
John Conlon, the Chairman of the OPW, in his report to politicians today, writes: “I acknowledge that, while the costs for this project can be explained, the overall cost of delivering a covered bicycle shelter at Leinster House is completely not acceptable in the wider context of value for money and value for the taxpayer.”
He adds: “It is an extraordinary cost for the provision of a covered bicycle parking facility and one which the OPW has to seriously reflect on.”
He said he had examined the project file papers and met with relevant officials responsible for delivering this project, along with some officials in the Houses of the Oireachtas.
“In order to ensure full transparency and to provide independent verification on this project, I intend to seek an external audit,” Mr Conlon says.
“I am also asking that the external auditor advise me on any further measures that the OPW should consider to strengthen the delivery of value for money on such projects.”
As an additional safeguard, all projects between €200,000 and €500,000 will in future be required to have an initial cost and value for money (VfM) assessment presented to relevant management for approval to proceed.
The price of the project should also have been communicated to the Members of the Houses of the Oireachtas Commission, he said, “so that the costs could be considered and fully understood.”
Politicians have said they were never told any costs when seeking to acquire a new bike shed.
Governance “needs to be strengthened and needs to have regard to value for money on a project-by-project basis,” he says. Such costs will be indicated to the Houses of the Oireachtas Commission for any projects at the Leinster House campus in future.
The OPW will appear before the Oireachtas Finance Committee this afternoon at 1.30pm, to discuss the controversy.
Mr Conlon will tell the committee that he understands “the anger and frustration of both elected representatives and the public” and has committed to ensuring this does not happen in the future.
This will include the management board overseeing work that costs above €200,000.
“I am taking immediate measures to ensure that, in future, the value for money aspect of projects of this scale is more “front and centre” in our processes,” Mr Conlon will say in his opening statement.
“I have revised downwards the project approval thresholds that currently apply and I am also putting in place new governance measures to ensure that Management Board members oversee and approve all works above €200,000.
“This essential step will provide me with the assurance as Accounting Officer that public funds entrusted to the OPW are being spent effectively,” Mr Conlon will say.
Mr Conlon will also say that new steps to make the decision making process “more robust” will be brought in.
“In future, the OPW will ensure that the Oireachtas Commission is fully informed of costs for all elective projects in Leinster House. This will ensure the decision-making process is more robust.”
He will add that it was the failure of the OPW not to inform the Oireachtas Commission of the cost of the bike shelter.
Final Account Summary July 2024
1. Covered Shelter & bike stands €121,194.29
(Incl. manufacture, supply & install)
2. Other Works – Leinster Lawn North €52,886.84
(Groundworks incl. ducting and power/Drainage/ Resurfacing works)
– Granite landscaping (supply and install) 44,940.00
– Dayworks €30,468.69
– Preliminaries €23,043.73
– Agreed variation €11,416.04
__________
Total Works €283,949.59 (ex VAT)
VAT €38,333.19
3. Archaeology Services €2,952 (incl VAT)
Quantity Surveying Services (incl contract management) €10,816.52 (incl VAT)
Total: €336,051.30
