Michael Harty (Clare, Independent) | Oireachtas source

I visited the site and, having done so, my anxiety regarding the premium for building the hospital in that location as opposed to on a greenfield site was heightened. That premium is adding substantially to the cost. The State is locked into a contract and a process which is very difficult to control. The difficulties started with the two-stage procurement process, which was a mistake. The resignations that have taken place this year could not give anybody confidence that there is financial control over this project.

The Minister made reference to residual risk and I would like him to answer my questions on same. If building inflation goes above 4%, there will be an increase in the guaranteed maximum price. It is my understanding that building inflation is now at 10%. If the project goes over time, there will be a considerable addition to the guaranteed price. If there are additional design or planning requirements, these too will increase the price. If there are any unexpected contingencies or claims, they will add to the price, as will any change to any regulation, such as VAT rates. I would like the Minister to respond to those five points. If he does not have the time to do so now, I would like a response in writing. There are five residual risks which will add substantially to the final cost.

Regarding the letter of resignation, I ask the Minister to confirm to whom it was sent. Was it sent to him? Can he tell us what was in the letter of resignation? Finally, what is the estimated total cost overrun above the guaranteed maximum price? Obviously, there is going to be an overrun.

See this speech in context