Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

103. To ask the Minister for Public Expenditure and Reform the additional costs in terms of inflation and other costs that will be incurred as a result of delays to infrastructure projects in view of the overrun in the cost of the national children’s hospital; and if he will make a statement on the matter. [8769/19]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Government has not changed the overall capital spending envelope under the NDP. An important rationale for Government to commit to a ten year spending ceiling is, precisely, to mitigate the risk of cost inflation by giving stakeholders a basis for their capacity planning. I would not expect construction cost inflation to change in any meaningful way because an individual project is rescheduled within the existing budgetary envelope.

I might add that the National Development Plan 2018-2027 explicitly points to the need for a healthy, sustainable, competitive and well-functioning construction industry as essential for NDP delivery. I have therefore initiated the Construction Sector Group, as envisaged under the NDP, as a mechanism for engagement with the sector. This will ensure that any strategic capacity bottlenecks, which could accelerate cost inflation, are identified and addressed.