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Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: We will now move to the Fine Gael committee members, starting with Deputy Durkan.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: The Deputy is referring to the Pythagoras theory.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: I call Senator Colm Burke.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: In the preamble to the recommendations in the PwC report, it states that the guaranteed maximum price, established through the two-stage tender process, does not provide a contractual ceiling on costs and significant residual risks remain to further cost escalation. The report was tasked with looking at the cost escalation and the reasons for it, and to identify solutions. Can Mr. Barry...

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: When the National Paediatric Hospital Development Board was here at the end of January, its representatives identified a number of risks to the guaranteed maximum price. One was construction inflation, which was pitched at 4%. If construction inflation were to increase to 7%, it would add €47 million to the cost of the project. If it increased to 10%, €96 million would be...

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: Regulatory changes.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: In addition, at the end of January the National Paediatric Hospital Development Board was going to conduct another scenario analysis in order to identify costs that were as yet unidentifiable. Has that analysis been completed and has the board identified other costs? If the project is not completed in 2022 as planned, each month by which it is extended will add a considerable cost, most...

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: On the maximum guaranteed price, there are at least five factors that could lead to a significant escalation in cost.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: So the cost of €1.433 billion is most likely to be exceeded.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: Has the board introduced into the process the recommendation in the PwC report to the effect that there should be an independent body sitting between the National Paediatric Hospital Development Board and the design team and quantity surveyor companies to oversee that what they are billing for in respect of the project is absolutely correct?

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: Have additional bills been submitted by the design team for amounts above what was expected or what was within the maximum price?

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: Is that acceptable?

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: Is that the norm with projects like this or has the two-stage procurement process led to this capacity to continually submit additional claims?

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: When the whole project is complete, the satellite centres in Connolly and Tallaght will be ambulatory centres. There will be no overnight beds.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: If someone needs admission, he or she will be transferred to St. James's Hospital.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: Eventually, the opening hours will be 8 a.m. to midnight.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: Does Deputy O'Connell want to come in?

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: We will return to our second round of speakers. I call Deputy Donnelly.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: We have dealt with that issue.

Joint Oireachtas Committee on Health: National Children's Hospital: Discussion (12 Jun 2019)

Michael Harty: The information we received was on the Coombe hospital rather than Holles Street hospital.

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