Mr. Fred Barry:

The contract has an inflation rate of 4% covered within it. Inflation in excess of 4%, therefore, will lead to additional payments and costs. As to the likelihood of that happening, a continuous rate of inflation in excess of 4% going on for another four or five years would be unusual. If that happens, it will be because the economy continues to boom. The inflation rates are high at the moment. That is particularly the case regarding the skilled trades that will be needed for the construction of the hospital.

Many of them are the same as those needed for some of the major industrial developments. There are some very big life sciences developments taking place in the country. Many members will have seen that Intel has started a huge programme of work, while another is to follow hot on its heels if planning permission is received. Therefore, there are many cost pressures. Certainly, the construction inflation rate is running in excess of 4%. Depending on whose measure one takes, the rate is probably about 6% plus, but I would be surprised to see the rate of 6% continue for another four or five years, only because it would imply a very superheated economy during that period. However, I do not know.