Probe into toll road firm’s deal with Government

Mary Dundon, Political Reporter

However, the State has only received E65m under the deal, which was signed between the Government and NTR back in 1987, Labour's Transport spokeswoman Roisín Shortall said yesterday.

The C&AG has agreed to her request for an investigation into the deal between the Government and NTR for the Westlink Toll Road and bridges, which initially cost E38m.

"A further E700m is expected to be paid to the NTR up to 2020, when the deal expires this represents a return of around 2000%," Ms Shortall said.

Ms Shortall added that her attempts to raise the matter in the Dáil were ruled out of order by the current Transport Minister, Martin Cullen. So she referred the matter last week to the C&AG, who has agreed to carry out a value-for-money audit.

One of the significant figures in the original deal was former Dublin City Manager George Redmond.

"This has all the characteristics of a sweetheart deal between those concerned," Ms Shortall said.

It also emerged yesterday that the NTR received State subsidies of over E6m during 2002-2003 in compensation for disruption caused during the construction of the second Westlink Bridge in Dublin.

The National Roads Authority annual report revealed that NTR got this money because it is entitled to a toll increase every year. However, during the construction of the second bridge, the State sought a zero increase for motorists because of the disruption and was told that this could only happen if the State paid a "shadow toll" for each vehicle using the bridge.

The original deal between the NTR and State was signed by Dublin City Council in 1987, but when the National Roads Authority (NRA) was set up in 1994 it took over the council's role.

NRA spokesman Michael Egan said yesterday it had no problem with the C&AG investigation and indicated this to the Oireachtas Transport Committee before Christmas. "But politicians should not be using terms like 'sweetheart deal' because it could unfairly prejudice the outcome of the investigation."

The National Tolls Road could not be reached for comment.