Brian Stanley, the chairman of the Public Accounts Committee (PAC), has urged that ‘loopholes’ must be filled to minimise taxpayer’s money risk whilst inking public contracts. His satement came in response to an enquiry concerning the appointment of construction company BAM Ireland as the primary contractor for the new €100 million Narrow Water Bridge project in Co Louth. This bridge is set to link Cornamucklagh near Omeath with Narrow Water near Warrenpoint, Co Down.
Last week, Tánaiste Micheál Martin strongly rebuked BAM Ireland in the Dáil due to its participation in the national children’s hospital project, which has been plagued by setbacks and budget overages. It is projected that the first patients will not be seen there until at least next autumn. BAM has dismissed Mr Martin’s accusations.
While speaking to Newstalk Breakfast, Mr Stanley paused when discussing BAM Ireland’s appointment to the Narrow Water Bridge project, emphasizing the need for discretionary power among public bodies, local councils and government departments in contract matters. He noted that contracts call for professional execution, legal approval, and loophole closure to minmise taxpayers’ risks. Project deadlines need to be met and they need to be completed because these hospitals and bridge and road services are desperately required, he added.
“Companies’ track records need to be seriously considered before they’re granted a public contract,” as per Mr Stanley. Any information about perpetual issues, delays, inflationary costs and legal disputes relating to claims “must be seriously considered”, he said. Mr Stanley added that while some projects have been performed within deadline and budget, many other public projects have been troubled with constant issues.
He believes that a significant overhaul of the contract conditions needs to be in place when public bodies and the government are approving contracts. Mr Stanley acknowledged the ongoing issue of rapidly rising costs for various projects, adding that many contracts do not see such increases which is a good sign. He stressed that it’s important for taxpayers and public bodies to be reassured that the public treasury will be safeguarded.
“Every government, whether existing now or in the future, must have a solid understanding of the vulnerabilities present in their contractual terms,” he stated, emphasising a need for an Office of Government Procurement. He suggested an in-depth restructuring of their operating procedures to ensure greater efficiency. He acknowledged the existence of certain legal restrictions and emphasised the need for meticulous legal attention to enhance their robustness, close any potential loopholes, and mitigate financial risks to taxpayers.
He strongly disapproved of uncertain contracts and fluctuating prices. In response to accusations levelled by Mr Martin regarding the national children’s hospital, BAM reiterated their unwavering commitment towards successfully completing the project in a cost-effective manner.
BAM assured their resourcing of the project was significantly more than originally required, largely due to a multitude of design changes and disruptions, and vowed to continue this level of commitment until the project is completed – stating they were resourced “54 per cent above anticipated levels” for the current stage of the project.
Mr Alasdair Henderson, who holds an executive director’s position at BAM Ireland, reminded everyone of the company’s impressive history, boasting more than six decades of infrastructure development in Ireland. Touching on the Narrow Water Bridge, he stated that the use of up-to-date construction techniques would create a safe, environmentally friendly path for cyclists and pedestrians, reflecting the company’s purpose of building a sustainable future. He also highlighted some of the notable projects which BAM has completed recently, including the construction of the Rose Fitzgerald Kennedy bridge in County Kilkenny.