Michael Harty (Clare, Independent) | Oireachtas source

Thank you. To open proceedings, I will ask three questions. First, having listened to the evidence given to us last week by the development board of the hospital, we heard of the two-phase tendering process. We feel the cost overrun is particularly identified in that two-phase tendering process. Phase A was tendered on the basis of full design but phase B was tendered on the basis of preliminary design, with approximate and re-measureable bills of quantities, and this is where the cost escalation arises. Phase A was agreed without knowing the cost of phase B or agreeing the cost of phase B. When it came to agreeing the cost of phase B, the cost had escalated by €320 million. Mr. Desmond might comment on that.

The second question is in regard to the reporting process. In his opening statement Mr. Desmond outlined the reporting process, which seems overly cumbersome. We have the National Paediatric Hospital Development Board, which receives funds from the HSE and provides regular updates to the HSE. We have the children's hospital project and programme board, which is chaired by the Secretary General of the Department of Health and is tasked with the integration of clinical and non-clinical services; preparing for the opening of the outpatient department, OPD, and urgent care centres; and managing dependencies across various components. We then have the children's hospital project and programme steering group, which is chaired by Mr. Sullivan and is to direct the overall programme. Mr. Desmond might go into detail on those reporting processes.

The third question is in regard to the knock-on effects this will have on other capital programmes. The Department has identified that where contractual arrangements have already been entered into, projects will continue, such as at the forensic hospital and the National Rehabilitation Hospital in Dún Laoghaire, but all other projects seem to be subject to the knock-on effects of the excessive cost of the children's hospital. Mr. Desmond might comment on those three items.