Éamon Ó Cuív (Galway West, Fianna Fail)
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192. To ask the Minister for Health the underspend to date in 2022 of the capital allocation of his Department; the amount of this that relates to expenditure by the HSE; the steps that he intends taking to ensure that HSE estates have the expertise, staff and organisation to progress capital projects big and small expeditiously; if he has considered appointing process consultants to examine the way that this section of the HSE might work more efficiently; and if he will make a statement on the matter. [58370/22]

Stephen Donnelly (Wicklow, Fianna Fail)
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The total capital allocation in 2022 of €1,060m covers capital projects in my Department and other agencies (€15m), HSE ICT projects (€130m) and HSE Building and Infrastructure (€865m core projects €50m Covid projects). In addition, an amount of €100m was being retained within central government contingency funding in relation to capital measures which may be required in the response to the COVID-19 pandemic.

As the end of October, the capital spend is €120m under profile, of which €112m relates to the HSE. The construction environment in 2022 has been very challenging across all sectors, not just Health, given inflationary pressures, labour and supply chain issues and in particular the shock of the war in Ukraine. These unprecedented factors have had an impact on project progression in 2022 (e.g., contractors not willing to stand over bids or tenders taking a long time to conclude) in all sectors including Health.

There is proactive management and oversight of the health capital vote across the HSE and the Department at individual project and programme level and across the capital vote. Based on this ongoing management and oversight, actions taken during the year, and evidence informed projections of expenditure and cashflows to year end, the projection is that the full capital allocation for 2022 as set out in the NDP and in Capital Plans will be required to meet health capital commitments and cashflows by year end. In addition, there is a projected requirement by way of supplementary estimate to access €90m of the original €100m provided in contingency funds.

Regarding the workings of the HSE Capital & Estates function, the operation of and experience and expertise of the function was assessed and recognised by EY in their report for the Department of Public Expenditure & Reform as part of the NDP review, “Capital Project and Programme Delivery Capability Review”, 2021. In this report it is identified that the HSE Capital & Estates function has a high degree of experience and specialism in asset management and delivery.

However, it is recognised that as activity increases, the successful delivery of the capital programme will be dependent upon having people with the right skills and experience available across the programme lifecycle. Although there is an experienced cohort of capital programme professionals in HSE Capital & Estates function, there is an increasing challenge in recruiting, retaining and developing this professional talent.

The need for additional resources in this area in the context of delivery of the NDP and capital plans has been highlighted and is understood. I, and officials in my Department, are working with the HSE in development of the National Service Plan and Capital Plan cognisant of this resourcing need for the current and future delivery of Capital Plans and projects.