Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I thank the Deputy for raising the issue. As he knows, in respect of financing the children's hospital project, €150 million has been included in the 2019 capital profiles for the project. Based on the outcome of the guaranteed maximum price, GMP, process in December 2018, an additional €100 million was required to fund the project this year. The Government decided that €24 million of this additional requirement would be provided from the health capital allocation. The balance for 2019 of €75 million will be met by rescheduling capital allocations in other Departments, which has been the subject of discussion in the Chamber many times. This is out of a total proposed capital allocation in the State of €7.33 billion in 2019. It is important to note that this is an increase of €1.33 billion, or 22%, on the 2018 allocation.

The new children's hospital is a vital and much needed project and the Government has examined the funding pressures associated with delivering this important project. In meeting these funding pressures, the Government examined all projects and programmes throughout government and has made adjustments to ensure the much needed new children's hospital will be delivered and will be facilitated as part of the overall capital investment programme. Projects in construction and contractually committed projects will not be affected, as the Minister has said many times. With regard to meeting the additional funding requirements for the project in future years, the Department of Health is engaged with the Department of Public Expenditure and Reform and the HSE.

The Minister for Public Expenditure and Reform announced the State is speeding up reforms to our public procurement processes, and certainly lessons will be learned from this project. As the Deputy said, the HSE is finalising the capital plan for this year. The requirements of the new children's hospital and other health capital projects at various stages of development are being considered as part of this process. The capital allocation for health in 2019 is €642 million for the construction and equipping of health services. When that work is finalised, of course it will be subject to debate in the House. When the HSE has it ready, it will present it to the Minister.

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