2026-06-18

104. Deputy Pa Daly asked the Minister for Transport to provide an update on the rail traffic management system; to provide and updated timeline for delivery; the projected costs; and if he will make a statement on the matter. [45509/26]

I ask the Minister to provide an update on the replacement of the State's rail traffic management system; to provide an updated timeline for delivery; the projected costs for this; and to make a statement on the matter.

The National Train Control Centre building was completed in November 2022, on time and within budget, despite significant disruption to the construction sector throughout the Covid pandemic. While the building today houses some signalling operations and Iarnród Éireann staff, as well as approximately 100 personnel of An Garda Síochána overseeing communications in the Dublin metropolitan region, bringing the centre into full operation has been delayed by slower-than-projected progress in developing and rolling out the new traffic management system, which is the software that integrates a range of complex railway systems, such as signalling and communications. Taxpayers and train users are rightly concerned about this delay as I am too, I assure the Deputy. In my capacity as Minister, I have met with Indra, the contractor delivering the traffic management system. I met them last August and again in January of this year. On both occasions, I expressed my clear dissatisfaction with the state of progress and emphasised the importance of bringing the project to a successful conclusion as quickly as possible. A re-baselined programme was agreed between Iarnród Éireann, the NTA and Indra in November 2024, breaking the project into eight discrete commissioning phases to improve deliverability and realise benefits incrementally. The contractor delivered software to Iarnród Éireann in mid-April to support the planned implementation of commissioning phase 1 on the Rosslare line for early next year. A three-month software testing period is now ongoing. Decisions on software acceptance and future commissioning phases will be taken in mid-July, the middle of next month. Given issues in terms of project delivery, I understand that the board of Iarnród Éireann is also considering potential options for the future delivery of the project. I await its recommendations, which I have not received yet. In advance of the conclusion of software testing and consideration by the Iarnród Éireann board, it would be premature to discuss schedule and cost implications for the project because I do not have that information yet.

The €50 million that has been written off on this failed traffic management system represents a shocking waste of public money. The information given to the transport committee last week by Irish Rail showed that, for years, Iarnród Éireann staff expressed concerns about the ability of the contractor, Indra, to deliver this project. Despite these concerns, millions of euro continued to be put into this project. It demonstrates a real failure in project oversight. I understand that, in mid-2025, Iarnród Éireann recommended to the NTA that the contract be terminated due to the ongoing delivery concerns, yet that contract is still in place. The Minister mentioned that he had met the contractor. I know the Department has been kept updated on this. Why was a stop not put to this contract, given all the evidence that Indra was failing to deliver it? What has the Minister done to ensure that costs are kept under control to avoid this waste of money? What is going to happen to this contract going forward, and how will the Minister ensure that costs are kept under control?

It is a very important system. We need this system in place. It is not a question of just pulling the plug on it. It has to be managed through. I have said very clearly to Indra myself that I am most unhappy with the manner in which this is being delivered and the delays in the system. In relation to the write-down amount, I note that the asset value of the national train control centre, NTCC, is also considered in the CIÉ Group accounts for 2025. These accounts were received by my Department on 18 May and are currently being reviewed in the Department and by financial advisers in NewERA, and I expect to receive them shortly. I have not got them yet. I want to look into that in detail. It is my intention to bring the accounts to the Government and have them laid before the Oireachtas in the coming weeks. Fundamentally, though, and regardless of who delivers this system, we need it. It is important for signalling and safety. The manner in which it is being brought about is far from acceptable, and that is putting it mildly. I am acutely conscious that the money we invest on behalf of our people has to be invested correctly and projects like this have to be delivered on time. When I have further details on this, I will come back to the House. The accounts will be laid before the Oireachtas shortly.

It is a very important project. It is clear from the evidence that Iarnród Éireann provided that the failure to deliver the system now risks the possibility of disruption to rail services. A sum of €50 million is an enormous amount of money. We just had a discussion about the lack of funding that was available for new public transport services, and €50 million would make a huge difference there and right across the public transport system in terms of the constraints that exist. The Minister needs to ensure that the costs are brought back under control, and that there is no risk to the safe operation of the rail network. The Minister should provide clarity on how we have got to this point and why this lack of oversight has been allowed to happen, as well as on what his own role has been in terms of oversight here. Indra is also the contractor responsible for the delivery of the contactless payments on the public transport system, as part of next-generation ticketing. The cost of that programme is up to €269 million. Will the Minister confirm what actions he is taking to oversee that project as well?

We are on track to deliver contactless payments. I have met Indra specifically about the contactless payments. That is critical for the public transport offering that we have across the country. Real-time testing rolls out on a phased basis next year, leading to a phased roll-out from 2028. That is a very intricate system. It has to operate in tandem with Leap as well, so we have to operate dual systems. On this specifically, I want to be clear that from a rail safety perspective, contingency plans are in place to mitigate the impact of delays on the traffic management system. To safeguard the signalling resilience of the rail network, I approved an additional allocation of €5.7 million in May to enable Iarnród Éireann to commence additional signalling works to increase operational resilience within the greater Dublin area, the busiest part of our rail network. When I have the accounts, when they are back from NewERA and that work is done, I will be assessing them. I do not micromanage every agency's budget. That is not my role. The NTA and Iarnród Éireann are supposed to manage that appropriately. I take this very seriously, though. I will be looking at the accounts when I receive them. I will be bringing them to the Cabinet. The figure that has been put out there may not be the figure. That is from what I have been told. That will be laid before the Oireachtas and it would be a good opportunity for the transport committee to further interrogate it as well. The main thing is we need the system delivered.