Oireachtas Joint and Select Committees

Thursday, 31 January 2019

Public Accounts Committee

National Paediatric Hospital Development Board: Financial Statements 2017

9:00 am

Mr. Jim Breslin:

The main issue, as highlighted in the footnote on page 2 of the briefing note, is that there are items that have been excluded from the contract that has been entered into. They are set out in the footnote. One is a change in scope, so if the development board or indeed any of us decided this is a different hospital, we want to make it bigger, that would involve more money. Another is excess national construction inflation beyond July 2019 and beyond 4%. If inflation in 2019, 2020, 2021 and 2022 goes above 4%, then the contractor can come back and look for that based on a defined index. Another is changes in legislation; if the Minister for Public Expenditure and Reform increased VAT rates, the overall VAT rate would go up.

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