Results 10,341-10,360 of 26,394 for speaker:David Cullinane
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: Is that one of the residual risks?
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: I will get to that in a moment and I have questions on it. What else is there?
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: When Mr. Barry referred to design changes, changes in regulations and so on, are they ones for which a claim could be made, although that does not necessarily mean that the claim will be paid? If, for example, the developer submitted a claim as a consequence of one of the residual risks relating to design changes or the regulations he outlined, I imagine there would be negotiation. Is that...
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: There is no guarantee the contractor would be paid. There would have to be a negotiation between the board and the company.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: There were already some cost controls. Mr. Barry stated the board manages the claims that are received. A range of claims could be received and there may well be pushback from the board on some of them to protect the taxpayer, as he noted.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: That can happen in certain circumstances where it is not guaranteed that simply because a developer makes a claim, he or she will be paid.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: Inflation is not one such circumstance.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: The contract is clear.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: My point is that-----
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: -----it is more clear-cut.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: Mr. Barry might confirm my understanding or, if I am wrong, correct me. My understanding is that inflation of 4% is built into the contract. Is that correct?
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: If inflation is less than 4%, will there be clawback for the State?
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: That was not the question I asked, because I know that. If it was less than 4%, would we get money back?
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: We get no money back if it is less than 4%, but if it is above 4%, we will have to pay the difference.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: The risk, in terms of inflation, will be carried by the State. Why is that? I ask Mr. Barry because he is leading the project-----
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: We have to examine where mistakes may have been made. Could that have been one such mistake, where better controls should have been put in place?
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: Why include the rate of 4% in that case? If it was included, one would expect that some attempt must have been made to mitigate the risk. In fact, there was none, given that if it is less than 4%, we will get nothing back, while it is more than 4%, the State will have to pay more.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: My point is that irrespective of that, we can all accept that at the end of the year, inflation will be above 4% and there will be an additional cost. Is that fair to say?
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: That additional cost will be on top of the €1.433 billion. At least in this area, therefore, there will be an additional cost for the taxpayer.
- Public Accounts Committee: National Paediatric Hospital Development Board: Financial Statements 2018 (5 Dec 2019)
David Cullinane: It goes back to the set of minutes that Deputy Munster mentioned earlier. It was redacted where the board discussed the risks associated with inflation. Mr. Barry stated the discussion was probably about what the board would have to pay in "certain circumstances" - those were the words he used - if inflation were to go above 4%.