Joan Burton (Dublin West, Labour) | Oireachtas source

Given the scale of this particular project, there would appear to be relatively few contractors in Ireland who could bid for it. It seems to me that the contractors are able to call the shots on variations, although Mr. Watt has said that they will have to prove their case. Is there an effective cartel in operation among a chosen group of contractors? The Taoiseach was in Lisbon last week and I did some research on hospital projects in Portugal. A hospital is being built there at the moment comprising 875 rooms, so it is much bigger than our children's hospital. It is expected to come in at €330 million or, to round it off, less than €400 million. Did Mr. Watt and his Department or the Department of Health have a look at comparative costings of hospitals in different parts of the world? When this project was originally mooted, I did that. I visited children's hospitals when I went to the USA for St. Patrick's Day. The Irish national children's hospital is stunningly expensive and Mr. Watt has not explained why that is so. He made reference to the fact that it is being built on a brownfield site. Let us say that a brownfield site adds 10% or 15% to the cost. I am prepared to accept that but I ask Mr. Watt to explain to us, on behalf of taxpayers, how we got it so incredibly wrong. Is there a cartel in operation? It seems that contractors are pitching at particular prices but those prices are only a first guesstimate and they get inflated afterwards. How does that happen in Ireland when similar projects in other countries are coming in at a much lower cost? I know that wage costs in other countries may not be exactly the same but even in places like California, hospital projects are cheaper than they are here.

Mr. Watt is aware of the section 38 and 39 institutions that rely on the State for capital funding. I am talking specifically about hospice developments around the country. A voluntary project to build a hospice for one or even two counties will involve a huge amount of voluntary fundraising. Mr. Watt will know about the project in Blanchardstown which has been ongoing for years. At the end, the State comes in and tops up the funding to finish off the development and allow the hospice to open. Mr. Watt just said that €100 million is manageable but what is going to happen this year to the section 38 and 39 organisations that are due to receive capital funding? A sum of €100 million is a lot in the context of their projects. Can Mr. Watt say that no hospice in the country will be delayed for funding reasons? Where will the €100 million come from? We have heard from the Taoiseach and a range of Ministers that it will be €3 million off this and €3 million off that in a range of Departments. The Department of Health is offering up some of the budgetary reductions so what is going to happen to the section 38 and 39 allocations?