Written answers

Tuesday, 7 March 2017

Department of Health

National Children's Hospital

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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524. To ask the Minister for Health if plans for the new National Children's Hospital will be reviewed in view of the fact that the hospital will be the most expensive children's hospital in the world, according to international data; and if alternative sites will be considered and costed. [11480/17]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The Government decision in 2012 to locate the hospital on St James’s Hospital campus was made in the best interests of children from a clinical perspective. St. James's has the broadest range of national specialties of all our acute hospitals, in addition to a strong and well-established research and education infrastructure, making it the hospital that best meets the criteria to enable the children’s hospital achieve our vision of excellence in modern paediatric practice. A major milestone was achieved in this long awaited, much needed project when An Bord Pleánala granted planning permission in April 2016 to build a state of the art hospital on a campus shared with St. James’s Hospital, together with two Paediatric Outpatients and Urgent Care centres at Tallaght Hospital and Connolly Hospital. The first phase of construction (site clearing works) on the site of the new children’s hospital began in August 2016 and will be substantially completed within a matter of weeks. The new children’s hospital will open and provide services to children and young people in Ireland in 2021, and the Urgent Care Centres at Tallaght Hospital and Connolly Hospital will open on a phased basis from 2018.

The National Paediatric Hospital Development Board (NPHDB) was appointed in 2013 to design, build and equip the new children’s hospital for children, young people and families in Ireland. An internationally recognised design team supported by an experienced Board and Project Team are in place, have followed best international design, planning and procurement process at each stage of the project. The Project Team, during the design, planning and tendering phases, has constantly monitored the external environment – tracking construction inflation and market costs. The cost estimate for the core construction elements of the new children’s hospital and the Paediatric Outpatients and Urgent Care centres at Tallaght and Connolly Hospitals was prepared in early 2014. This estimate, prepared at a time when annual construction inflation predicted at 3% per annum, was €650m. The recently concluded tendering process for the main construction works determined the actual market cost of the construction elements of the project. Due to annual construction inflation rising from 3% in 2013 to more than 9% in 2017 and the lengthened project timeline in the planning, design and procurement process, the cost of the core construction of the hospital and Paediatric Outpatients and Urgent Care Centres has increased from the original estimate. The increase reflects the increasing volume of activity in the Irish construction industry which is having a significant impact on construction inflation.

The Final Project Brief sets out the costs and funding proposals for the construction of the core hospital and satellite centres, including VAT provision, risk provision, all fees, decant, external works, enabling costs and project management costs. Importantly, it also includes commercial spaces (underground carpark and retail space), higher education facilities, the Children’s Research and Innovation Centre, and equipment.

While I am not in a position to comment on cost at this stage, I understand that the final construction elements of the project compare favourably to the costs of international projects of a similar size and scale. I intend to bring a Memorandum to Government in the coming weeks on the new children’s hospital. Full details of the costs will be set out in the Memorandum for Government and will form the basis upon which the approval decision will be made. The costs and funding will span the period up to and including 2021 in line with project requirements.

The NPHDB and the Children’s Hospital Group Board continue to work closely with the HSE and the Department of Health to deliver this much-needed world-class hospital. My priority, as I have stated before, is to make progress on the new hospital as soon as possible so we can ensure children, young people and their families have the facilities they need and deserve.

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