The Office of Public Works has admitted that the cost of the Dáil bike shed was “completely not acceptable” in terms of value for money.

In a statement this morning, the Chairman of the OPW said that from now on management Board members will be required to oversee and approve all works above €200,000.

It comes after it emerged yesterday that civil servants employed at ‘principal officer’ level within the OPW were empowered to sign off on up to €500,000 worth of spending.

“The Chairman of the OPW acknowledges that, while the costs for this project can be explained, the overall cost of delivering a covered bicycle shelter at Leinster House is completely not acceptable in the wider context of value for money and value for the taxpayer,” the OPW said this morning.

“It is an extraordinary cost for the provision of a covered bicycle parking facility and one which the OPW has to seriously reflect on.”

It said the chair was taking “immediate measures” to ensure that value for money is front and centre when it comes to projects of this scale.

“The chair has revised downwards the project approval thresholds that currently apply and is also putting in place new governance measures to ensure that Management Board members oversee and approve all works above €200,000,” it said.

The body also acknowledged that governance and reporting on projects requested by the Houses of the Oireachtas (HOC) need to be strengthened and need “to have regard to value for money on a project-by-project basis”.

Moving forward, it said the cost of all HOC works will be provided at monthly meetings with the Oireachtas Commission.

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