Government projects overrun costs - Comptroller report

The Comptroller and Auditor General’s annual report released today reveals that several high-profile Government projects have…

The Comptroller and Auditor General’s annual report released today reveals that several high-profile Government projects have incurred serious overrun costs.

The report said the Dublin Transportation Office Action Plan - aimed at tackling the traffic gridlock - is now likely to exceed initial cost estimates. It blamed industrial actions which had not been factored into the plan.

The plan was found to have increased transport capacity in the city but failed to reach a number of its targets.

The Comptroller noted the Garda Air Support Unit, due to be run jointly by the Department of Justice and the Department of Defence, was also likely to incur overrun costs. In this case the report said the operation had been "hampered by inadequacies in management".

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The two replica famine-ship projects were also found to have exceeded their initial estimates, one by as much as £8 million.

The Revenue Commissioners today denied there was anything significant in the low number of prosecutions for tax evasion compared with those for social welfare fraud.

Last year 37 cases of possible tax evasion were brought to the attention of the Revenue Commissioners but only three were prosecuted. In contrast, the report revealed there were 185 prosecutions for social welfare fraud.

A spokesman for the Revenue Commissioners said the comparison between the two was completely invalid. He said: "It was like comparing apples with oranges".

The report admits prosecuting serious tax evasion involves a resource-intensive criminal investigation which can take several years, he said.

The more realistic comparison with social welfare fraud would be with those prosecuted for non-filing of tax returns, he added.

The report showed the Revenue Commissioners successfully prosecuted 1,017 taxpayers who failed to submit their tax returns in 2000.

It said the Revenue Commissioners issued 8,190 warning letters and accumulated fines totalling £734,656.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times