€50m write-off of Irish Rail IT project a 'scandal'

The Public Accounts Committee has heard that a €50 million write-off by Irish Rail of a failed IT project is an "absolute scandal".

Iarnród Éireann has written down the value of the planned IT system, due to ongoing issues with the delivery of the project.

The committee agreed to call in the National Transport Authority and Irish Rail to an early hearing to discuss the matter.

With around 600 passenger trains operating on the rail network every day, traffic management is central to efficient oversight of the service provided by Iarnród Éireann.

But long-standing concerns about the ability of the Indra company to deliver on the terms of a contract for a new system to manage rail traffic have come to a head.

It is understood that after several missed deadlines, Irish Rail has written down the total anticipated costs of the project in its latest accounts.

The issue, first reported in today's Irish Times, was the focus of much comment at this morning’s committee.

Chair Sinn Féin TD John Brady said the issue exposed a serious failure in terms of governance and oversight - by a multitude of agencies.

Fine Gael Deputy James Geoghegan said it was incumbent on the committee to find out where accountability lies.

Fianna Fáil's Seamus McGrath said the sum was a "staggering amount of money" and he said it was disappointing that it was revealed in the media rather than through official channels.

Fine Gael's Grace Boland said the issue called into question the oversight of procurement at Irish Rail and she said it was very alarming that the impairment will be double the IT budget.

She said Irish Rail had no confidence in the project which was all about safety.

Iarnród Éireann says its priority is to deliver the Transport Management System (TMS).

The National Transport Authority, which is the approving authority for such projects, is to be called before the Public Accounts Committee to discuss the matter.

The Department of Transport and the Chief Information Officer will also be called in to discuss the Irish Rail write-off.