Róisín Shortall (Dublin North West, Labour)

I am taking this Adjournment matter on behalf of the Minister for Health. I thank the Deputy for raising the issue as it provides an opportunity to update the House on the matter and to outline the background to the current situation and the action taken by the Health Service Executive.

The Health Service Executive has operational responsibility for the delivery of health and social services, including the construction of health care facilities such as the new accommodation at Letterkenny General Hospital. The Minister for Health is not a party to the construction contracts and has no legal standing in the matter. The delay to the construction is a result of the legal complexities of the receivership process. The HSE is doing its best to expedite matters. This is a difficult situation which has arisen through no fault of the HSE.

The project at Letterkenny General Hospital will deliver a new accident and emergency department and a new medical assessment unit with an additional 29 beds. A total of 72 replacement beds will be provided in the medical ward block over the accident and emergency department and the medical assessment unit. Following the appointment of a receiver, the Health Service Executive took control of the construction works and terminated the contractor's obligation to complete the works under clause 12 of the contract. Notwithstanding this, the contract terms remain in force and the HSE is legally bound by these terms. The HSE must at all times operate within the terms of the contract. There is no basis on which it can be asked to do otherwise.

As is best practice, an insurance bond is an important condition contained in this construction contract. The purpose of an insurance bond is to ensure a construction project can be delivered to the satisfaction of the contracting authority in the event that the contractor is not in a position to complete the project. This is a complex legal procedure and all parties are bound by the conditions of the bond.

The executive and its legal advisers are working with the insurer, sometimes called the bondsman, to ensure the completion of the project. Subject to contract and legal constraints, the HSE will, where possible, take into account the interests of subcontractors but, under the legal circumstances now prevailing, cannot give guarantees in this regard. In accordance with the terms of the bond, the insurer is entitled to nominate a contractor who will complete the project to the satisfaction of the HSE.

Discussions with the insurer are well advanced and the most recent meeting of parties took place late last week. The HSE now awaits the formal proposal from the insurer as to arrangements for completion of the construction. When contracts have been signed and construction commences on site, the best estimate of the HSE at this stage is that the remaining construction work could be completed in approximately 12 weeks. Following this, the building must be equipped and commissioned, which the HSE estimates could take a minimum of six to eight weeks.

I wish to assure the House regarding the management of the accident and emergency services at Letterkenny. The management of Letterkenny General Hospital states that the admission of patients presenting as emergencies is undertaken as promptly as possible and any delays in the emergency unit for admission to a bed are minimised. This focus on managing the emergency workload is reflected in the excellent rating on HealthStat that Letterkenny General Hospital continues to receive when compared with peer hospitals. I thank the Deputy for raising this matter and assure him everything possible is being done by the HSE to ensure the project is completed as quickly as possible.

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