Dáil Éireann Debate, Wednesday - 27 February 2019
112. Deputy Mick Wallace asked the Minister for Health his views on the fact that the public spending code guidelines may have been ignored with regard to the construction of the national children's hospital; if he is satisfied that in relation to the hospital the public spending code guideline of money being spent as efficiently as possible avoiding waste has been followed; and if he will make a statement on the matter. [9822/19]
View answerI am advised that the approval and appraisal process for the new children’s hospital project has been in accordance with the requirements of the Public Spending Code.
As the Deputy will be aware, an independent review of the escalation in cost in relation to the new children’s hospital review has been commissioned by the HSE and is being undertaken by PwC. The terms of reference have been published. The review will establish the sequence of events in relation to the cost increases experienced by the project; establish what was known, when and by whom, and the reporting of relevant information from the project team to the relevant oversight and governance bodies including NPHDB Board and also its Committees, the HSE and the Department of Health.
The review will also comment not just on the major residual risks and the robustness/completeness of the current forecasts, but also identify and where possible quantify those risks contractually excluded from the Guaranteed Maximum Price/adjusted contract sum. The terms of reference also require the review to develop any further recommendations which may identify any areas of potential cost savings or reductions, which are consistent with the applicable contractual undertakings and the delivery of the project, in light of its current status, address major residual risks, control and oversight issues and bring greater oversight of performance and value for money.
The review will be completed by the end of March, subject to availability of relevant documentation and personnel and will inform any governance or other changes required.
