David Cullinane (Waterford, Sinn Fein)
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26. To ask the Minister for Health the additional funding stream which has been allocated to his Department for 2017 and 2018 to cover the cost of the National Children's Hospital in view of public comments by the Minister for Public Expenditure and Reform on funding for the National Children's Hospital on 7 February 2017 and the remarks by the Director General of the HSE on 7 February 2017 that there is not enough money at present to ensure the project is carried through to fruition; if there is no additional funding available, the suggestions his Department has made as to the areas in which cuts and savings could be made to cover the cost of the National Children's Hospital; and if he will make a statement on the matter. [10851/17]

Simon Harris (Wicklow, Fine Gael)
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Following decades of discussion and debate, Ireland is about to get the new children’s hospital that it badly needs and deserves. An internationally recognised design team, supported by an experienced National Paediatric Hospital Development Board and Project Team is in place to drive the project to develop the new children’s hospital.

The tender process for the core construction elements for the new children’s hospital and the satellite centres was highly competitive and a company has been notified that it is the preferred bidder.

A cost estimate was completed in early 2014 when construction inflation was estimated at 3%. The pricing proposed by the tenderers took account of construction inflation (now running at higher than 9%), the extended project timeline, now scheduled to complete in 2021 and the final market cost of the build.

There has been much speculation about the cost of building this hospital. While I am not in a position to comment on contract prices and funding implications at this stage, it is not accurate to compare the €650 million of Exchequer funding approved in 2014 for the core construction of the new children's hospital and two satellite centres with the full programme costs set out in the Final Project Brief.

The costs set out in the Final Project Brief provide 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.

The updated capital costs have now been incorporated into the Final Project Brief which has been submitted to my Department by the HSE and is currently under consideration. As identified by my colleague the Minister for Expenditure and Reform and by the HSE, the new children’s hospital is a priority Government project. I intend to bring a Memorandum to Government in the coming weeks on the new children’s hospital. Full details of the costs and funding 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.