Taoiseach says BAM cannot be barred from State contracts despite children’s hospital delays

Government advised EU procurement rules prevent factoring past performance into contract awards despite ongoing delays at flagship project

A construction worker at the construction site of the new National Children's Hospital in Dublin. File Picture: PA

Taoiseach Micheál Martin has said there is no legally possible way to preclude the main contractor of the National Children’s Hospital from tendering for or being awarded contracts for other major projects.

The beleaguered National Children's Hospital has faced ongoing delays, with no current date provided to the Government, the National Paediatric Hospital Development Board (NPHDB), or CHI for its completion by contractor BAM. It has already been delayed 19 times.

In September 2024, then health minister Stephen Donnelly wrote to the Government leaders enquiring whether measures could be taken to ensure the State could “factor [in] current performance on public works into the future awarding of work so that the State is not seen to be either a soft touch or to reward poor performance and behaviour”.

Speaking in Athlone on Friday, Mr Martin said it would not be possible to do this, regardless of whether there is a desire to do so.

“It was looked at in terms of the general policy area and within the European legal framework in terms of tendering that's not possible, was a very clear advice to us,” the Taoiseach said.

“No matter how one might wish to look at past performance as an indicator in terms of the awarding of new contracts, we have been told that we cannot do that legally.

“Without question, I think what's important is that we steadily work protecting the taxpayer here, because there's been lots of pressure in terms of when will the hospital open

“In my view, the hospital will open when everything has been sorted with the company. The company needs to put more people on site and to fulfil the commitments that it has made.”

Mr Martin said BAM has submitted claims which have been “independently arbitrated” and will be “robustly defended” through the mediation process.

“There potentially have been pressure put on the government to sort of say, look, ‘pay a lot more just to get the thing finished’,

“I think we took the correct stance some time back to do this professionally, robustly at all times, defending the taxpayer.

“We will get that hospital open. It will be state of the art. It will make a huge difference. The terrible thing is that there are children today who need access to a world class hospital environment, and they are being denied that.”

Elsewhere, Mr Martin said he would have “concerns” about reports that lender “Nua Money” would provide mortgages up to five times a person’s income.

He argued that “all companies should align with Central Bank regulations”, which limit loans at four times a first-time buyer’s income, and 3.5 times a second or subsequent buyer's income.

Banks are allowed to offer 15% of their mortgages annually with a loan to income exception.

The Taoiseach said: “Even though this is, in so far as a percentage of the loan book is allowed, you can make exceptions.

“Nonetheless, I think given the uncertainty that's out there, I would have concerns about five times.”