Michael Harty (Clare, Independent) | Oireachtas source

This meeting is to examine in detail the reasons for the huge projected cost overruns at the new national children's hospital and the impact those increases will have on other capital projects in the health sector. On behalf of the committee, I welcome the Minister for Health, Deputy Simon Harris, Mr. Jim Breslin, Secretary General of the Department of Health and Ms Fionnuala Duffy, principal officer in the Department of Health.

I draw the attention of witnesses to the fact that by virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to the committee. However, if they are directed by the committee to cease giving evidence on a particular matter and they continue to so do, they are entitled thereafter only to a qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and they are asked to respect the parliamentary practice to the effect that, where possible, they should not criticise or make charges against any person, persons or entity by name or in such a way as to make him, her or it identifiable. Any opening statements that have been made to the committee may be published on its website after the meeting. Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the House or an official either by name or in such a way as to make him or her identifiable.

This is our third meeting on this issue. We met with the development board of the hospital and, last week, we met the Department and the HSE, amounting to almost nine hours of evidence in total. The issue relates to cost escalation. It has been explained to us that the complexity of the process was at the heart of some of the cost escalation. The proposal is to build the best hospital in the world, a digital hospital that will be environmentally friendly and appropriate for patients and parents. The fundamental factor relates to the two-stage process, which did not properly determine the total cost of the project. It would appear that the Government did not put a total cost on the project so the overall impression is that it has gone out of control and this will have a knock-on effect on the capital programme for years to come. It is not just about the children's hospital but other elements of health reform and expanding capacity.

We had requested the Department of Public Expenditure and Reform to present to the committee and we continue to make the invitation. The Department has not yet accepted the invitation but we are hopeful it will come before us as we feel it has a responsibility in allocating the extra funding of €450 million. It would also have had a part to play in the drawing up of Government contracts so we feel it should attend.

My only question to the Minister is to ask him for his overall impression of what has happened, so that we can get a sense of what the Department feels is responsible for the cost escalation.