Oireachtas Joint and Select Committees

Thursday, 5 December 2019

Public Accounts Committee

National Paediatric Hospital Development Board: Financial Statements 2018

9:00 am

Mr. Fred Barry:

There were a number of questions. First, it is already in the public domain, and we referenced the figures in the PwC report, that if inflation is over 4%, there will be extra costs over the €1.433 billion. I reiterate that inflation this year is running at about 7%. It is an absolute certainty that we will pay extra money on foot of that inflation. If inflation runs at 7% for the life of the project, the total additional cost from inflation will be in the order of €50 million. If it is higher, it will be more, while if it is less, it will be less. There is no suggestion on our part that there is not going to be an additional cost from inflation over the €1.433 billion. If I have given the impression that we think there will not be a cost through inflation, I did not mean to give that impression.

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