Written answers

Wednesday, 8 March 2017

Department of Health

National Children's Hospital Expenditure

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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100. To ask the Minister for Health the details of all moneys provided by the State toward the development of a national paediatric hospital since 2006, including all costs associated with development such as design, planning, land acquisition, consultation, media and public relations, board payments, bonuses and so on; if approvals have been sought for an increase in the original estimate for the current National Children's Hospital project; the details of the increase; if such an increase has been approved; and if he will make a statement on the matter. [10850/17]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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There has been much speculation about the cost of building this hospital. 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. While I am not in a position to comment on contract prices and funding implications at this stage, the pricing proposed by the tenderers in the recently concluded tendering process for the main construction works 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. 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.

The National Paediatric Hospital Development Board is the statutory body charged with delivery of the capital project, I have asked it to respond to you directly regarding all costs associated with the development of the project since 2006.

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