Oireachtas Joint and Select Committees

Wednesday, 18 November 2020

Joint Oireachtas Committee on Health

National Children's Hospital

Mr. David Gunning:

I will deal with the other issues raised by Deputy Durkan, and then hand over to Ms Hardiman for the questions relating to Blanchardstown. Starting with the issue of progress, let me speak about Tallaght. We expect the substantial completion of the Tallaght facility in September 2021, which is seven months behind the contractual completion date of February next. Turning to the completion of the national children's hospital on the St. James's campus, the contract date for completion is August 2022. It is fair to say that we have no expectation at this time that that date will be met. In the absence of a compliant programme from the contractor, it is a challenge for the development board to state specifically when that facility will be completed. We are working closely with the contractor to identify and progress that issue. We have been working on this matter for more than a year, we have had significant engagement on it and we really need to move it forward. That element of the project is certainly clearly in delay and that message has been clearly communicated.

Turning to the issue of costs, the cost budget for the completion of the project, that is, the approved budget, is €1.433 billion. We are currently operating within that budgetary scope. However, it is fair to say that there are considerable pressures on that budget. Referring back to my point in respect of delays, time on any project tends to impact on costs and this project will not be an exception. In respect of other matters, we have a significant number of claims from the contractor for moneys additional to the agreed contract price. We are defending these claims. I reiterate that in circumstances where the contractor is entitled to additional payments, we are making and will continue to make such payments.

On the High Court, and in order to correct the perception, I must state that the development board has referred a particular issue to the High Court. This was done when the dispute mechanisms within the contract were exhausted and the issue had not been satisfactorily resolved. The matter in respect of which we have issued proceedings relates to the contractor's position that the instruction to commence the phase B works, namely, works above ground, was invalid. We cannot say a great deal about this. We obviously disagree with that position. The contractor is completing the works and we are paying the contractor for the completion of the works, so we would say that it is somewhat odd to consider that the instruction is invalid. However, that issue is before the High Court. Regarding the Deputy's question about whether there are other issues before the High Court, that is the only issue before the High Court now.

That is a summary of the key issues Deputy Durkan asked about. The unit in Blanchardstown has opened and I will hand over to Ms Hardiman to address how it is operating and the various questions from the Deputy in that regard, such as how the staff and others feel about it.

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