Financial dispute threatens to delay opening of M7 motorway

THE GOVERNMENT’S plan to have all new motorways between Dublin and the regional cities open by the end of the year is in doubt because of a dispute over the final section of the M7.

Minister for Transport Noel Dempsey has been asked to intervene in the multi-party dispute that threatens to prevent the Castletown-Nenagh stretch of the M7 opening by December 31st.

The road is structurally finished. It is understood lines and markings are within days of completion, but no opening date has been agreed.

At the centre of the row is a claim for additional payments from contractor Bowen Somague Joint Venture. An award, believed to be in the region of €20 million, was made to the contractor following conciliation hearings, but this had been contested by Laois County Council, supported by the National Roads Authority.

The council and the roads authority now want the claim to go to full arbitration. The council, however, is required to pay the full conciliation award to the contractor in advance of the dispute moving to arbitration.

Laois County Council has said it is prepared to pay, but director of services for roads Gerry Gibson said the process provided for a bond from the contractor to ensure the money was not dissipated, should the council ultimately win. “The bond is a requirement and we have a duty to protect the public purse,” Mr Gibson said.

He added that the process of taking responsibility for the road also involved health and safety audits, among other formalities. These had not been completed and he said the speed with which these requirements were met was a matter for the contractor.

A statement on behalf of Bowen Somague said: “As far as the contractor is concerned, it will be physically possible to open the road by the end of the year. However, only Laois County Council can determine the actual opening date.”

Meanwhile, some subcontractors say they are awaiting payment for work on the €337 million 36km motorway. Local TD Noel Coonan (FG) said up to 25 sub-contractors and their suppliers were awaiting payment from various parties.

“It will have disastrous consequences for the economy if local suppliers cannot pay their creditors and are forced to close,” he said. Mr Coonan called on Mr Dempsey to intervene “as a matter of urgency”.

The Castletown-Nenagh stretch of the M7 links Borris-in-Ossory with Moneygall, Co Offaly. It is the final stretch of a road which began with the opening of the Naas bypass in 1983.

The government in the 2000- 2006 National Development Plan initially targeted completion of all the major inter-urban motorways between Dublin and the regional cities for 2006. This was later amended to 2010 in the National Development Plan 2007-2013.