Written answers

Wednesday, 17 February 2021

Department of Health

National Children's Hospital

Photo of Carol NolanCarol Nolan (Laois-Offaly, Independent)
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717. To ask the Minister for Health the details of the legal costs incurred by the National Paediatric Hospital Development Board in challenging claims brought against it by contractors associated with the national children’s hospital from 2017 to date; the anticipated legal costs until 2022; and if he will make a statement on the matter. [8150/21]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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The National Paediatric Hospital Development Board (NPHDB) has the statutory responsibility and resources to plan, design, build, furnish and equip the new children's hospital.

In line with the recommendations of the PwC report on the national children's hospital in April 2019, the NPHDB has strengthened its project controls, including in respect of claims management. This is in addition to the agreed Dispute Management Process in place between the NPHDB and the Main Contractor.

The Contractor continues to make claims, which it is entitled to do, but where it is considered that such claims are being made on matters within the contractual obligations of the contractor, the NPHDB is using all levers available to it to manage and defend against any such claims so as to protect the public purse.

The legal costs incurred to date are outlined below.

Year - Legal Fees

2017 - €409,121

2018 - €128,142

2019 - €691,712

2020 - €466,747

There were also legal expenses incurred relating to the dispute of the validity of the Phase B above ground works instruction. As the matter is now before the High Court, it would be inappropriate to comment further at this stage, even as regards the legal fees.

The Contractor continues to make claims and future costs to robustly defend such claims are yet to be determined.

Photo of Carol NolanCarol Nolan (Laois-Offaly, Independent)
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718. To ask the Minister for Health the details of the costs associated with implementing the recommendations contained within the new children's hospital independent review of the escalation in costs prepared by a company (details supplied); and if he will make a statement on the matter. [8153/21]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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In January 2019, PwC was commissioned by the HSE, on behalf of the Government, to conduct a review of the cost escalation associated with the children's hospital project. The report made 11 recommendations. The Government accepted the recommendations of the PwC report.

Substantial progress has been made in putting into effect measures that will address the recommendations of the report. Some of the recommendations are fully implemented and a substantial number of the actions to implement the remaining recommendations are complete, with some ongoing.

The HSE, National Paediatric Hospital Development Board (NPHDB) and Children's Health Ireland have indicated that there will be additional costs to their organisations arising from the implementation of the PwC recommendations, and the Department of Health is working with stakeholders to ensure that any such implementation costs are met from existing resources within each organisation to the greatest extent possible.

At this time, there has been no additional funding approved to meet any additional costs of implementation.

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