Speaking in New York today, Mr Martin said he “was shocked to hear that figure this morning”.
“It’s ridiculous. There’s no need for that level of expenditure. I think we need a fundamental review now of what’s happening there, and full transparency in front of the Oireachtas of the actual breakdown of costs, that does seem shocking, in terms of what is there that it would cost that amount of money.”
He said the Comptroller and Auditor General does review public spending and said that many projects come in under budget.
However, the Tánaiste said that didn’t feel that controversies around public spending necessarily meant that a Department of Infrastructure was needed.
“I haven’t seen any blueprint for it at all. And are we really saying that, for example, the Department of Education that is building schools goes into an infrastructure department, when there’s already significant expertise that was built up over years in the building of schools? So my concern with that proposal is that it would lead actually to a greater delay and even more costly expenditure over time.”
The revelation comes as the chairman of the Office of Public Works (OPW) John Conlon and other representatives were before the committee answering questions on the now infamous Leinster House bike shelter.
Mr Conlon told members that the security shelter was built following “an extensive review of security in this campus by An Garda Síochána Technical Advisory Group”.
The total cost of the project was €1.429 million, Mr Conlon said, which included the costs of a temporary structure while the work was being completed.
“Whilst it looks like and is a fairly significant cost, there are very significant mechanical, electrical and security system costs in that.
“There was also a significant cost to provide temporary structure while that building was taking place,” Mr Conlon said.
He added that there was a “huge security element” to the project that also included costs for CCTV, ventilation and underground works.
The security hut before the €1.4m refurbishment.
The security shelter is located on Merrion Street and now features a large swooping copper roof as part of the new building works done to it.
Asked by Green Party TD Steven Matthews if he believed the cost was excessive for the purpose of the shelter, Mr Conlon disagreed.
“I don’t believe it is, given the significant security dimensions to it, and the security elements of it, which were very costly,” Mr Conlon told the committee.
The chair of the OPW added that there were a lot of elements to the project that are not visible, including mechanical and electrical security systems that link up with a control system across the campus of government buildings.
“There’s a huge amount of networking that arose in that project in the Leinster House and government buildings campus including power, communications, security, CCTV systems. So it’s not just what you see when you look down the south gate. There’s far more to that project than meets the eye,” Mr Conlon said.
This came after the €336,000 structure at Leinster House dubbed “the most expensive bike shed in the world”, will now to be the subject of an external audit.
A report on the issue from the Office of Public Works (OPW) shows almost €3,000 was spent on archaeology services, while quantity surveying for the well-appointed stand came to nearly €11,000.
The cost of the manufacture, supply 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, where there is a capacity for 36.
In his report to politicians today, John Conlon, chairman of the OPW, 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.
“It is an extraordinary cost for the provision of a covered bicycle parking facility and one which the OPW has to seriously reflect on.”
Mr Conlon said he had examined the project file papers and met with relevant officials responsible for delivering the project, along with 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,” said Mr Conlon.
“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.”
He added that 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 not told of 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,” said Mr Conlon. 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 today 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 also say that new steps to ensure the decision-making process is “more robust” will be brought in, adding that: “In future, the OPW will ensure that the Oireachtas commission is fully informed of costs for all elective projects in Leinster House.”
He will say 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
