Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Yesterday, the Joint Committee on Health met to discuss the construction of the national children's hospital. Not for the first time, the public heard revelations that there are more rising costs, and this is an issue of major concern for people. This project was originally costed at €790 million in 2013. It went up to €983 million in 2017, and then we were told in December of last year that there was a guaranteed maximum price of just over €1.4 billion. However, yesterday we were informed by the chair of the National Paediatric Hospital Development Board, Mr. Fred Barry, that in addition to the final costing, there has now been a considerable amount of claims for additional money from the contractor. Time extensions are also being requested, which will undoubtedly push up the price far beyond the guaranteed maximum price the Taoiseach cited. This, we are told, is a result of construction inflation, which is higher than the 4% provided in the contract that was signed with the contractor, BAM. It was well flagged by many people, including my colleague Deputy Jonathan O'Brien, that construction inflation, which is at 7.5% at present, was running at nearly double what is set out in the contract. We are told that this project is facing risks of delays in meeting important milestones, and these delays would add around €10 million for every month it fails to meet its target. This is very concerning, and it demands a robust response from both the Government and the Minister for Health. What is being done here, because this is simply a runaway train? The amount of public money being spent on this project is not warranted to this level, and the public sees that. We cannot allow this situation to get further out of control. A plan needs to be put in place by the Government to ensure these costs are controlled once and for all.

The cost overrun is already having an impact. There are real concerns in communities right across the State about the impact it is having on them and the commitments that have been made to fund other projects. We heard from the Irish Fiscal Advisory Council that unless the Government gets a handle on dealing with major infrastructure projects, or if it those projects continue to run over at their current level, €2 billion per annum will have to be cut from smaller projects. These include flood defences, road repairs, school extensions, and other projects that are vital in local and rural communities. That is the reality. This is an issue in the paediatric unit at Cork University Hospital, for example, as well as in the Regional Hospital Mullingar, where the commitment for a new MRI scanner is now in question. What is happening with the second cath lab in University Hospital Waterford, which is also in question as a result of these overruns? What about the proposed upgrades in Cavan, or the community hospitals in Stranorlar and Ramelton in County Donegal? I could go on. The public wants to know what is the final price of this project. How much more is this project going to run over? We need answers to that. The public demands straight answers from this Government as to what projects will be cut or delayed as a result of these overruns. It is now June. We are six months into this year and there has been no clarity in respect of the HSE's capital plan for 2019. It is ludicrous that we still do not have a capital plan six months into the year. We need straight answers. We need to know what the final figure is and we need a Government that is getting a handle and a grip on runaway projects.

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