NTA criticised over handling of abandoned rail IT system

Executives from the National Transport Authority have been sharply criticised by politicians for their handling of an abandoned rail traffic management system at a cost of €50m.

This week, Irish Rail wrote to the NTA to recommend a contract with Spanish company Indra for the system be terminated.

Executives from the NTA appeared before the Oireachtas Committee on Transport and faced sustained criticism over the organisation’s oversight and governance of the contract.

Politicians also attacked the NTA for stating it would not be able to add any new bus services this year due to funding constraints at the same time as Irish Rail faced costs of €50m over its failed traffic management system.

Fine Gael TD Grace Boland said: “It’s €50m wasted and you don’t have funding for services.”

Chief Executive of the NTA Anne Shaw said: “We take that seriously that public money is being spent on something that is not working.”

Deputy Boland said it was a “total cost failure for the taxpayer”.

NTA Director of Transport and Planning Hugh Creegan said that there had been problems with the contract with Indra “for a number of years”.

He added that termination of the contract was “a big step to make as it may result in litigation”.

He said from the summer of 2025 the NTA met Indra every two weeks with Irish Rail.

“Indra have not delivered on this contract,” he added.

Sinn Féin Senator Joanne Collins asked whether there would be compensation for Irish Rail.

Fine Gael TD Emer Currie said that in 2025, Irish Rail recommended that the contract be terminated and a plan B be considered.

She added: “I don’t have confidence that the proper learnings have been taken on board.”

She also asked if higher fares could be considered to deal with funding pressures.

Ms Shaw responded: “We have to take all of the funding pot into account.”

In her opening statement, Ms Shaw said despite record public funding, the NTA has been unable to add any new bus services in 2026 due to cost inflation.

She said that the organisation was working with the Department of Transport to assess funding alongside fare revenues.

NTA executives said plans for new services in Cork and the redesign of the network for Dublin had been put on hold due to funding constraints.

Politicians on the committee grilled the NTA on local transport issues in Wicklow, Mayo, Meath, Tipperary, Limerick and west Cork.