The National Transport Authority (NTA) has been criticised by members of the Oireachtas for a failed €50 million rail traffic management system that was recently abandoned.The NTA is currently reviewing a recommendation from Irish Rail to terminate a contract with Spanish company Indra for the development of a much-delayed IT system for the country’s railways.The traffic management system was supposed to be in place two years ago but has experienced considerable delays and budget overruns.Irish Rail’s board last month wrote down by €50 million the value of its investment in a new national train control centre. Much of this impairment related to spending on the traffic management system.Executives from the NTA appeared before the Oireachtas transport committee on Wednesday morning where they faced criticism from politicians.Fine Gael TD Grace Boland said €50 million had been “wasted” and that it was a “total cost failure for the taxpayer”, while Sinn Féin Senator Joanne Collins asked whether there would be compensation for Irish Rail.“We take that seriously that public money is being spent on something that is not working,” NTA chief executive Anne Shaw said.There had been problems with the contract with Indra “for a number of years” and they had “not delivered” on the contract, said Hugh Creegan, director of transport and planning at the NTA. The NTA also faced criticism from the committee for stating it would not be able to add any new bus services this year due to funding constraints.[ New €30m Irish Rail IT system failed key safety testsOpens in new window ]“With increasing costs due to inflationary and congestion impacts, we have not been able to add any new services during 2026,” Shaw told the committee.“We are, however, working closely with the Department of Transport to assess funding alongside fare revenues which will maintain existing services,” she added.The NTA is working to introduce new phases of BusConnects in Dublin and Cork and increase capacity on routes where there is higher demand.TFI Local Link recorded almost seven million journeys, and town bus services carried 1.2 million passengers in 2026, with more than 90 per cent of passengers reporting satisfaction with their most recent journey.But this success “also highlights the constraints we face,” Shaw said.[ MetroLink legislation may be fast-tracked by MinisterOpens in new window ]“Demand is exceeding supply in many areas, particularly at peak times, and there is strong demand for further expansion,” she said. “Our ability to respond is limited by driver and mechanic availability, fleet supply, depot capacity and the time required to plan and deliver major infrastructure.”