Cost to integrate ticketing up €20m

Integrated ticketing:The long-planned introduction of an integrated ticketing scheme for various forms of public transport will now cost nearly €50 million, the C&AG's report reveals.

The Department of Transport told the comptroller that the increase from the original estimated capital cost of €29.6 million was due to factors including the longer implementation period for the project from 2005 to 2010, associated price inflation, and increased contributions to transport operators to reflect the cost of integration and to stimulate the involvement of private bus operators.

The report says the Department of Finance approved proposals put forward by the Department of Transport last May for a smartcard-based integrated ticketing system subject to conditions.

The department stipulated that the capital cost of the project, including agreed contributions to the stakeholder companies and the cost associated with incorporating the Free Travel Scheme, would not exceed €49.6 million.

The department said the full capital cost had to be met from within the Transport 21 budget (for transport infrastructure projects) and that the ongoing current cost of the project had to be met by the transport companies and not in any form by the exchequer.

The secretary general of the Department of Transport told the comptroller that "while the focus would be on delivery within the agreed programme and capital budget, if at any stage it appeared that out-turn costs were likely to increase or that the expected benefits might not materialise, the department would immediately undertake a reappraisal of this project".