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Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: It just stated that there was a budget. The Department almost indicated that because it did not know the extent of the problem overall, it decided not to mention it until it could give a figure. There should have been some indication that there was a potential problem, however. It would have been relevant given that the Oireachtas was discussing the budget on 14 October or 15 October and...

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: Mr. Breslin gets the point. I asked a question earlier in respect of which I need a figure. Mr. Breslin kind of skimmed over it. I want to know what will be the annual operating budget for the hospital when it is in full swing.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: How does that tally with the cost of running Temple Street in Crumlin-----

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: Not that there is an issue. The last thing people want is these spanking new facilities not up and running. That has been the history of extensions to hospitals over the years. For the public record, what will be the cost of running the operation per year by comparison with that of running the existing children's hospital? What will the increase be? Given that everything is to be...

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: It is only a matter of providing a headline figure because other committees, systems and processes can interrogate this. I refer to headline figures, a bit like the €1.7 billion, just to give us an understanding. To my knowledge, the NDFA has a role in advising on all major capital infrastructure projects. We were involved with it regarding the Mater Hospital site. It seems to have...

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: If the NDFA has competence in that area, why was it not used to check the financial robustness of all the main contractors. Mr. Costello stated that there is some other method of doing it.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: The obvious question, from having listened to Deputy O'Connell earlier, concerns whether there is a bond in place if something major happens.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: What is the scale? What is the schedule of payments? Do they get any advance payments for work or is it for-----

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: In arrears.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: If something happened to a major contractor with which there is direct involvement – there are a number of them – the cost of another contractor tendering and picking up the pieces would result in an additional cost. What kinds of performance bonds or completion bonds – there are different words for bonds – has the board in place?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: In other words, if something happens the main contractor, the board has €40 million available to cover the costs of the project stopping, retendering and appointing a new contractor. Is that reasonable, from Mr. Costello's experience?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: I understand that.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: Mr. Costello can understand the concern, particularly in view of what occurred with schools building projects. Fortunately, there were no advance payments in those cases. Had there been, we would be in a dreadful position. Does Mr. Costello understand there is heightened public concern regarding these issues?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: Sammon is gone.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: There is a lot of talk about the preliminary design. Who produced that?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: Mr. Costello might send us a note on that. The underestimation associated with the preliminary design seems to be a core issue. There is an argument not that costs escalated to the extent they did but that, to begin with, the figures given at an earlier stage were incorrect. The comment has been made at the Committee of Public Accounts over the decades. There is often a tendency for public...

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: It looks a bit like that.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: When was the main contract signed? Was it early 2017?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: So they were on site in October 2017. When was the detailed design completed because it was at that stage, you started to see the issues. When was the detailed design?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (31 Jan 2019)

Seán Fleming: Approximately a year.

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