Government cannot say what final cost of National Children's Hospital will be
The National Children's Hospital in Rialto, Dublin. Picture: Gareth Chaney/Collins
The Government cannot say how much the new National Children's Hospital will cost or when it will be completed.
Tánaiste Leo Varadkar has defended the project, which has spiralled to at least €1.7bn, saying it is his "firm view that when this project is complete, few people will think it was a bad investment".
Mr Varadkar said a detailed analysis of the project is being carried out and it would therefore be "premature to speculate on any definitive budget or timeline updates".
"In December 2018, the previous government approved an investment decision of €1.433bn for the capital project. Several items are not included in this figure because there is no price certainty for them, nor can there be any for the duration of the project, including construction, hyperinflation and the impact of Covid-19.
"Since the analysis relates to a live contract, it is commercially sensitive and must remain confidential to ensure that the contractual relationships are not adversely affected and that the Government gets the best price at the end of the day," Mr Varadkar told the Dáil.
However, Social Democrats co-leader Catherine Murphy accused the new secretary general of the Department of Health, Robert Watt, of refusing to release details of the review.
The Sec Gen of the Dept of Health, Robert Watt, is refusing the release details of a review into the Children’s Hospital to the PAC.
— Social Democrats (@SocDems) June 17, 2021
The last estimate, in 2019, was €1.7 billion.
How much is this totem to Fine Gael fiscal prudence going to cost, asks @CathMurphyTD pic.twitter.com/MIaDeZLLqi
She referred to a recent letter to the Public Accounts Committee (PAC) from Mr Watt which stated: "There is an extremely high likelihood that any discussion on costs or dates, however hypothetical, even from the draft stages of the process, would prejudice enforcement of the existing contract and very likely undermine the role of the Development Board in its ongoing engagement with the main contractor."
She said: "It is, essentially, telling us to butt out, that it is none of our business," Ms Murphy told the Dáil.
She said between 2017 and 2019, 11 separate reviews and audits of the project were commissioned at a cost of €700,000 and another report was then sought, which PricewaterhouseCoopers carried out at a cost of €450,000.
She said the current review started last year and the PAC was told back in February that the report would be concluded within weeks.
Higher Education Minister Simon Harris has called on the Department of Health to reverse its decision not to engage with the Public Accounts Committee in relation to the National Children's Hospital.
He said transparency is key and said it was important there is engagement.
"For my four and a half years experience in the Department of Health, it's the norm obviously for the Department of Health, the accounting officer there to go before the Public Accounts Committee. I presume that will continue. I'm not sure of the reasons, but it certainly it's important that there is transparency over the projects that he's going to be a significant cost but also there's going to be a massive investment. I think it's very important that there is transparency, and that there is engagement," he said.
Separately, Solidarity-PBP TD Bríd Smith raised concerns about the governance and ethos of the new National Maternity Hospital.
She said a recent statement from the Religious Sisters of Charity claimed they will have no involvement in the management of St Vincent's Hospital Group, but she told the Dáil this is technically incorrect as they may still be able to appoint directors to the hospital.
Mr Varadar admitted that there are "problems in going forward with the maternity hospital.
"First is the ownership of the land the hospital will be built on. That is not being gifted to the State but to a private charity. It is proposed that there be a 99-year lease to the State. We have a difficulty with that. We do not think the safeguards around that are strong enough."
He added that there are also difficulties with the governance of the proposed new hospital as the board will not be appointed by the Government.
"That is a real difficulty because a hospital that is almost fully funded by the State should have a significant number or majority of members of the board appointed by the Government.
"That is the problem we face at the moment," said Mr Varadkar.
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