Stephen Donnelly (Wicklow, Fianna Fail)
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Annual capital ceilings are set out in the National Development Plan 2021-2030 (NDP); on a Departmental basis for the period to 2026 and on an aggregate basis out to 2030. Following the Estimates process each year, the Health Capital allocation is set out in the overall Health vote. In 2024 total funding available for the Health Building and Equipment Capital Plan is €1.138bn.

It is on the basis of this annual funding envelope that the HSE Capital Plan is developed, including capital funding for the New Children’s Hospital (NCH).

The HSE is required to prepare and submit to the me for review and approval an annual Capital Plan. In compiling the Capital Plan, first order priority is given to:

• Existing contractual commitments, i.e. the completion and equipping of all projects in construction. The NCH is one such project.
• Other contractual commitments e.g. Public Private Partnership unitary charges.

Following the allocation of funding to meet contractual commitments, priority is given to infrastructural risk projects, equipment replacement programme and the ambulance replacement programme.

Any remaining available funding is allocated to projects prioritised by the HSE National Capital and Property Steering Committee (NCPSC) in line with criteria agreed with my Department, which recognise Government and Ministerial priorities.

Inevitably there are more projects available to progress than there is funding available. Therefore, prioritisation of projects is necessary in the development of the annual capital plan. This is undertaken as set out above.

Progress of the capital programme and budget through the year must then be actively managed to ensure optimum usage of funding and resources in progression of the capital programme.

The NCH has been a contractually committed project in the Capital Plan for a number of years. On 13 February 2024, Government approved an enhanced capital budget sanction of €406m, bringing the total approved capital budget to €1.88bn (noting that in December 2023, Government had approved an interim increase of €40m to the capital budget). The approved increase in the capital budget was to address long-standing budget requirements identified in the 2019 PwC report, costs due to the extension of time to building completion, inflation, contractor claims, and to safeguard project and programme delivery to enable the hospital to open as soon as possible.

The approved HSE Capital Plan 2024 provides for the HSE to progress projects and programmes including the completion of the New Children's Hospital, advancement of the National Maternity Hospital, the Elective Hospitals, the development of Surgical Hubs, additional acute hospital capacity projects, progressing initiatives including primary care centres to bring about the delivery of care closer to home, investment in mental health facilities through the country, maintaining investment in minor capital initiatives, the delivery of the equipment and ambulance replacement programmes and to progress the Infrastructure and Decarbonisation Strategy and Implementation roadmap.

Based on the on-going review of progress, I expect the overall 2024 programme to be progressed in line with plan. I, and officials in my Department, continue to monitor progress and work with the HSE in the implementation of the plan.