Children's Hospital: 'Fair assumption' that project will exceed €1.7bn budget

Robert Watt told the PAC that he may be able to provide an update to the public regarding costs and completion dates of the hospital “hopefully when we reach another milestone in the contract”.

The head of the Department of Health has acknowledged it is a “fair assumption” that the controversial National Children’s Hospital will eventually cost more than its €1.7bn budget.

However, Robert Watt has refused to clarify for the Public Accounts Committee (PAC) where those costs currently stand, and has also refused to release a report detailing future cost estimates of the hospital for reasons of “commercial sensitivity”.

Asked at this morning’s committee hearing if the project will likely breach the €2bn mark, Mr Watt said: “We’re not speculating, there is no benefit in speculation at this stage. We’ve said there are pressures.”

The report of the National Paediatric Health Development Board (NPHDB) regarding the future of the massive project was delivered to the Department of Health in May.

In a heated exchange with Sinn Féin’s Imelda Munster, Mr Watt said he could provide the PAC with that report “but I don’t think it represents the best interests of the taxpayer or the State”.

“If the Taoiseach and Minister for Health want us to send the report, and PAC considers it sensible to publish, then we’ll publish it. It is definitely of interest, but it’s not in the interests of the taxpayer (to publish) if we want to complete the project with minimised costs,” he said.

My clear view is that publishing commercially sensitive information at this stage would be very damaging to the State’s interests.

Asked would he share the report in confidence with the committee, Mr Watt asked: “Who’s going to take responsibility for ensuring this information stays private?”

The meeting was dominated by the subject, and saw a deal of cross-party consensus on the matter, with Government TDs Neasa Hourigan and Cormac Devlin both also pressing Mr Watt on the matter.

“Oversight of public spending is our role, it is not your role,” Ms Hourigan said. 

“We should have access to that report.”

She said that the committee “of course” doesn’t want information on the hundreds of legal claims taken by BAM against the NPHDB. 

“We want the headline figures,” she said.

“That will impact our ability to conclude these discussions,” Mr Watt replied.

Robert Watt has refused to release a report to the Public Accounts Committee detailing future cost estimates of the hospital for reasons of “commercial sensitivity”. Photo: Gareth Chaney / Collins

He told Sinn Féin’s Matt Carthy that while the hospital is expected to be delivered in 2024, he could not give a precise time for its delivery in that year.

“We set out our assessment of the latest cost estimates, and what the risks are,” the secretary-general said. 

“I don’t accept that we’re not being transparent.”

Asked by Mr Carthy if “the reality is that (the January 2019 €1.7 billion budget) won’t be met”, Mr Watt said, “I think that’s a fair assumption yes”.

He told independent TD Verona Murphy that he may be able to provide an update to the public regarding costs and completion dates “hopefully when we reach another milestone in the contract”.

“Perhaps when the building is 75% completed, or when we have a resolution to some of these issues that are in dispute,” he added.