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Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: I have some questions on the timelines. We became aware of the cost escalation at the end of May 2018. Ms Conroy asked for a memo to be sent to the Government at the end of May 2018. Is that correct?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: Yes.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: She stated the Government needed to be advised of potential cost escalation in advance of the budget estimates.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: When did that memo actually go out?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: Was Ms Conroy happy-----

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: Ms Conroy was happy with that timeline and she was not concerned that it did not go earlier.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: When did it actually go to the Government? I am trying to get the timeline.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: That was after the budget.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: That was not what was intended initially. It was due to go prior to the budget to form part of the Estimates.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: But the hope-----

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: Okay, but nobody told the Department of Public Enterprise and Reform a potential cost overrun was going to take place. Even though some of the figures had been crystallised prior to the budget nobody decided to tell the Department of Public Enterprise and Reform there was an issue coming up. The Department decided to wait until it had the final figure to go to the Government.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: Of €200 million.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: The Minister for Health knew in September of the €190 million.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: That was crystallised at that stage because a detailed memo was sent-----

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: The memo that was sent to the Minister on 7 December details the €191 million.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: The memo also states that the estimated €191 million over the value did not include VAT or contemplate the sectoral employment order or hyperinflation. It is grand for the Department to state that it did not have a final figure, that it knew there was going to be a cost overrun at that stage but that it just did not know how much this would be.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: The reason it was not brought to the attention of the Department of Public Expenditure and Reform was because there was no crystallised figure.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: In hindsight, was that the correct approach?

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: Surely somebody could have said to the Minister, Deputy Donohoe, that there was a potential overrun and that while there was not yet a final figure, it would, based on reports that the Department of Health had received, be significant. He could have been told that perhaps he should take that into account in the Estimates.

Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2017 (Resumed) (16 May 2019)

Jonathan O'Brien: There were no conversations about the potential cost overrun in respect of the national children's hospital.

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