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Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Can Mr. Gunning clarify something before we get into this properly? How much is being paid to BAM in terms of claims at this point? Is the €27 million the total?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: delete

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: It is over and above. In other words, the board carried that risk over and above the 4%.

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: There are many moving parts from Mr. Gunning's opening statement. I call Deputy Kelly.

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Mr. Gunning, do you wish to answer that, please?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Mr. Quinn, do you want to comment on that. You are the Department representative. The question is whether not a penny more out of that half a billion will go to the contractor.

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Yes, so it is not a statement. In my opinion it is a difficult statement to stand over. I call Deputy Murphy.

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Thank you, Deputy. I will continue on that. On penalties, is Mr. Gunning telling us that no financial penalties have been levied on the contractor to date? Is that correct?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: In Mr. Gunning's opening statement, which I read carefully last night again, it seemed to indicate that the board is using all levers. Is that right?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: We accept that. Those are the tools that they were handed. What the opening statement and what Mr. Gunning has just confirmed to me tells me that the taxpayer, the Government, the State and the board, and Mr. Gunning is the representative of the Oireachtas and the public there, does not have the necessary levers built into this contract to levy penalties against the carry-on that has gone...

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: I think some of us in this room have made this point before. It does. We will come back to inflation in a minute. There has not been one penny. This company has not suffered one penalty of loss because of any of this. Can we establish that is the case? From what Mr. Gunning said, that is a fact.

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: This is outrageous stuff. This is absolutely outrageous stuff. Mr. Quinn is representing the Department here this morning. Was either Mr. Quinn or Mr. McKeith in situ in the Department of Health when this contract was being awarded? Did they have any role in this?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Who oversaw this in the Department of Health?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: I am trying to figure this out. I want to go back a bit and figure out where the buck stops. As some of the members alluded to earlier, there is also a national maternity hospital to be built. I think we all accept that there has been substantial inflation in the wider economy and in the construction sector given forces beyond our control like war and Covid but the point is about us not...

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: I am sure there are legal advisers and technical people who advise the board. Have the board’s legal advisers and other people who are involved in the technicalities of all of this examined and drilled right down to see if there are any instruments or levers, to use Mr. Gunning's word, that can be used to get the contractor to comply at this point?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Let me follow on from that. Does that advice indicate that you are not going to be able to keep the contractor to the commitment in respect of February of next year?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Let us refer to penalties for the sake of the public.

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: We know that all of those have been missed. Mr. Quinn, who is from the Department, is obviously keeping a close eye on this. I ask for his point of view and for those of the Secretary General and the assistant secretary. Is it his assessment and that of the Department that there has been too much risk and that all the risk in terms of timelines and costs has been loaded onto the board,...

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Is Mr. Quinn identifying flaws in this?

Public Accounts Committee: Financial Statements 2022: National Paediatric Hospital Development Board (30 May 2024)

Brian Stanley: Careful notes are therefore being taken of this so that lessons can be learned for future contracts.

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