Business Irish

Thursday 14 December 2017

IT overspend hits €3m at new Central Bank HQ

The New Central Bank Building on Dublin’s North Wall Quay. Photo: Irish Independent
The New Central Bank Building on Dublin’s North Wall Quay. Photo: Irish Independent

Simon Rowe

Overspend on IT-related costs at the Central Bank's new Docklands headquarters has spiralled to €3m.

An initial budget of €15m was agreed in November last year but this was quickly overshot by a €1.2m overspend by year-end 2016.

A further overspend of €1.8m was recorded in the first quarter of 2017.

As budgeted costs continue to spiral at the financial regulator, bank chiefs have approved an additional €11.5m contingency budget for IT and non-IT costs for the rest of 2017.

Central Bank board members were warned of the spiralling costs at a recent meeting.

Board members were told that "the forecasted spend in relation to IT investment was such that it would significantly exceed the agreed investment budget".

In response to questions from the Sunday Independent, a spokeswoman said: "An initial budget of €15m was approved by the Central Bank Commission in November 2016 based on a then expected profile of anticipated projects/programmes.

"The actual spend in 2016 was €16.2m. However, it is recognised that this profile will change during the year and an additional €11.5m contingency budget was approved for drawdown.

"The investment budget for IT is used to fund new systems and capabilities, not ongoing operational spend.

"The Central Bank will continue to monitor this spend as the year progresses and release funds if required from the approved contingency budget," she added.

The Bank relocated to a new €140m headquarters in North Wall Quay in Dublin in February.

Sunday Indo Business

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