Mr. Seamus McCarthy:

As the committee members are aware, the National Pediatric Hospital Development Board is a special purpose agency that exists to deliver the planning, design, construction and fit-out of the new children's hospital at the St. James's Hospital campus in Dublin and of two associated paediatric outpatient and urgent care centres located at Tallaght and Connolly hospitals. Children's Health Ireland will operate the services in the completed buildings into the future. Construction and fitting out of the centres at Tallaght and Connolly hospitals have been completed and they are now being operated by Children's Health Ireland. As members are aware, construction of the main hospital at St. James's is ongoing.

The development board is funded by Exchequer capital grants provided via the Health Service Executive. In 2022, the grant funding provided amounted to €316 million, matching the board's expenditure in the year. Note 2 to the financial statements indicates the total accumulated project costs incurred by the board to end 2022 amounted to €1.24 billion, including VAT. In note 8, the board indicates that it also had future capital payment commitments estimated at €217.6 million as at end 2022. Combined with the expenditure already incurred, this implies total committed project expenditure of at least €1.45 billion as at end 2022. This exceeded the budget of €1.433 billion allocated to the board in 2019. Further planned commitments yet to be contracted for will raise the overall expenditure further.

Notes 12 and 13 to the financial statements disclose that the board has also been notified of a large number of payment claims submitted by the main contractor. A small number of claims received have been certified and paid in line with contract terms. The board does not present an estimate of the additional costs it estimates it will incur arising from the remaining claims. However it discloses that a revised budget for the board's deliverables amounting to €1.88 billion was approved by the Government in February 2024. This represents a budget increase of approximately €450 million, or 31%. The budget for the parallel Children's Health Ireland projects was also increased in February 2024, from a previously estimated €300 million to €360 million, a 20% increase. The overall project budget to get all of the plant facilities up and running is, therefore, an estimated €2.24 billion.

The National Pediatric Hospital Development Board's 2022 financial statements were certified by me on 11 April 2024. In my view, except for the manner in which the board accounts for retirement benefit entitlements, the financial statements give a true and fair view of the assets, liabilities and financial position of the board at 31 December 2022.