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Written Answers — Department of Health: Hospital Appointments Status (16 Jan 2019)

Michael Harty: 185. To ask the Minister for Health when a person (details supplied) in County Clare will receive an appointment with University Hospital Limerick; and if he will make a statement on the matter. [1951/19]

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: The purpose of this morning's meeting is to examine in detail the reasons for the significant projected cost overruns at the new children’s’ hospital and to hear evidence from the National Paediatric Hospital Development Board. I welcome Mr. Tom Costello, chair, Mr. John Pollock, project director, Dr. Emma Curtis, clinical director, and Ms Eilísh Hardiman, chief executive...

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: I thank Mr. Costello. Will he explain why these overruns were not anticipated? Was it a fault in procurement, tendering or both? An expression of deep disappointment does not reflect the frustration and anger felt by this committee over what has happened. We want to find out who was responsible for these failures as this is an unprecedented overrun in one of the largest infrastructural...

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: My question was why those were not anticipated.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Has Mr. Costello estimated what percentage of the costs relates to the premium of building on the site at St. James's Hospital?

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: This particular site has certain costs built into it relating to demolition and decanting of buildings as Mr. Costello described in his opening statement.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Would Mr. Costello be able to provide that to the committee?

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Why would that not have been anticipated in the original design, procurement and tendering?

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Thank you.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Thank you. We will return to that point. We will take a break at 11.30 a.m. for 20 minutes or so to give people an opportunity to recharge their batteries.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: The premium now, unfortunately, is that every other capital project in the health service is going to be set back some years because all moneys are going to be directed to the national children's hospital. That includes money from other Departments to try to pay for the hospital, as far as we can gather. The premium is excessively high. I call Deputy Donnelly.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: I am sorry to interrupt but if a bid comes in at 20% lower than the next bid, there must be a reason for it being 20% lower. The person making that bid is using the same materials and has the same criteria. A reduction of 20% in respect of the nearest bidder is huge so there must be a reason for that. Did you find out what the reason was?

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Does the Senator want to bank his questions until after the break or is he happy to keep going?

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: We will break for 15 minutes.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: I propose we resume. Deputy Durkan was the next speaker.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Yes.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Before bringing in Deputy Donnelly on the second round of questioning, I will ask some questions. Does the contractor bear any responsibility for the financial overrun? In other words, are there any penalty clauses built into the contract or have any of those been triggered by targets not being reached?

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: That did not apply up to now.

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: Given the transition from the first to the second phase, would it not be pretty obvious that the party with the phase A contract would get the phase B contract? There is a penalty for a contractor in the form of incurred costs of €300 million if horses are changed mid-stream. There may also be a delay in the delivery date by two years. It would be pretty obvious to BAM Ireland that...

Joint Oireachtas Committee on Health: National Children’s Hospital: National Paediatric Hospital Development Board (16 Jan 2019)

Michael Harty: That clause had two serious elements. One was the extra €300 million and the second was the potential two-year delay.

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