Delay sees system’s cost spike by €20m

A FURTHER delay in the introduction of the smart card system for public transport has been blamed for a cost overrun of €20 million, according to the CAG report.

The Department of Transport told the CAG the cost of the project promised in 2002 had increased from €29.6m to €49.6m due to the longer implementation period of 2005 to 2010.

Price inflation, the cost of stimulating private bus operators to become involved and the technical requirements of providing free travel have all pushed up the cost, the department said. And it added that €11.2m of the overall capital cost represented costs incurred to the end of December 2006.

The Department of Finance has sanctioned the revised capital cost of the project on the basis it does not exceed €49.6m.

Transport said operating costs would not be borne by the exchequer and that the costs would be covered by savings made by participating transport operators and an adjustment of fares. It believes the integrated ticketing system for Dublin, first announced in 1999, must be capable in the future of accommodating public transport operators elsewhere.