Taoiseach: National Children's Hospital will proceed as planned

The Taoiseach has said the National Children's Hospital will proceed fully as planned.

Brian Cowen also said there is no issue with funding for the €650m hospital, contradicting concerns expressed by the hospital's former chairman.

The Taoiseach is the latest to comment on the increasing controversy over the National Children's Hospital project. He thanked the outgoing chairman, Philip Lynch, for his work.

Mr Lynch dramatically quit the chairmanship over "fundamental differences" with Minister for Health Mary Harney, including funding for and design challenges at the Mater site.

Mary Harney moved to dismiss those assertions last night saying she had asked Mt Lynch to resign.

Temple St's Children's Hospital chairman Donal Walsh this morning backed Ms Harney's decision, saying the Minister was right to seek Mr Lynch's resignation.

The new hospital is due to be built by 2015.