Written by Rachel Martin
Compensation paid to firms involved in the construction of DAERA customs infrastructure, as a result of delays starting the build, could total as much as £300,000.
The work has already been tendered with contracts signed, but now faces delays of up to two years.
Ports customs infrastructure
Initially, it was hoped the infrastructure at Larne, Belfast and Warrenpoint ports would be completed by June 2021.
However, on Thursday (April 15), DAERA permanent secretary Denis McMahon told the Agriculture Committee that this was now looking likely to be delayed until 2023.
Just the month before, McMahon told the committee completion would be delayed until March 2022.
However, on Thursday he explained that it had since been established that the department would need to put forward a business case for the infrastructure, which would need to be approved by both the Department of Finance and the UK Government Treasury.
Temporary facilities were set up to allow checks to be made until work was completed on the permanent facilities. However, these are not suitable for long-term use.
Plans were submitted for permanent border inspection posts at Larne, Warrenpoint and Belfast ports late last year, with the 7.4ac site at Larne set to include an area for livestock and horses.
McMahon explained there were some “very significant unknowns” that still needed to be resolved, as well as concern the number of checks could quadrupule.
Mid Ulster MLA Patsy McGlone said: “If a contractor has been issued with a tender and has complied with that tender for a new build for completion in June of this year and that has slipped back until 2023… I presume a contractor’s not going to be hanging around for a year and a half or whatever it may be for the department or departments to get their act together around start date and completion date because they have staff.”
Mark Livingstone, director of operational readiness at DAERA, said: “This is a fairly extensive contract and it’s what they call an NEC Level 3 contract, contracted services. So in very, very simple terms, you pay for what you get, but in the real world of contracting it’s just not as simple as that.
Livingstone acknowledged there were some costs associated with the delay.
“In terms of compensation payments, I’m working with CPD [Central Procurement Directorate] to look at those and they could be in the region of £300,000.”
The department is currently seeking legal advice on the matter.
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