Dáil Éireann Debate, Monday - 11 September 2023
1556. Deputy Rose Conway-Walsh asked the Minister for Health the reason for capital expenditure running €77 million behind profile, as outlined in the Mid-Year Expenditure Report; and if he will make a statement on the matter. [37474/23]
View answerOverall Capital expenditure was €77.4m under-profile to the end of June 2023. €72.8m of this underspend is from the M2 subhead which is for building and equipping of healthcare facilities. The Capital Plan 2023 sets out the capital programme and lists the projects across the sector and the country to be progressed this year. Good progress is being made in the implementation of the plan. At the end of June, non-New Children's Hospital (NCH) M2 expenditure was €8.2m under profile, with full allocation and profile planned to be drawn down by year end.
The key driver of the capital underspend against profile to end of June 2023 was an underspend in respect of the New Children’s Hospital (NCH).
The NCH project is well advanced with the construction and equipping phase 89% complete against contract value. However, BAM continues to underperform against its own scheduled programme up to end June 2023 and this is negatively impacting cashflow vs projections for the year to date. The National Paediatric Development Board (NPHDB) is continuing to engage with BAM to increase productivity on the project and to ensure it is completed as soon as possible. The NCH cashflow projection also included allowances/ contingencies that would only be needed in the event of unsuccessful outcomes from the disputes resolution processes under the public works contract.
I, officials in my Department, the HSE, and the NPHDB will continue to work on the implementation of the Capital Plan over the remaining course of the year.
