Dáil Éireann Debate, Thursday - 2 March 2017
201. Deputy David Cullinane asked the Minister for Health the original costs approved by his Department in respect of the national children's hospital; the projected costs as they stand today; the reason for any variation; and if he will make a statement on the matter. [10887/17]
Amharc ar fhreagraThe project to develop the new children’s hospital is an extraordinary opportunity to enhance paediatric services for children. The Government decision in 2012 to locate the hospital on St James’s Hospital campus was made in the best interests of children from a clinical perspective. St. James's has the broadest range of national specialties of all our acute hospitals, in addition to a strong and well-established research and education infrastructure, making it the hospital that best meets the criteria to enable the children’s hospital achieve our vision of excellence in modern paediatric practice.
A major milestone was achieved in this long awaited, much needed project when An Bord Pleanála granted planning permission in April 2016 to build a state of the art hospital on a campus shared with St. James’s Hospital, together with two Paediatric Outpatients and Urgent Care centres at Tallaght Hospital and Connolly Hospital. The first phase of construction (site clearing works) on the site of the new children’s hospital began in August 2016 and will be substantially completed within a matter of weeks.
The previous Government committed to making €200m available from the sale of the National Lottery for the new children's hospital, adding to the existing €450m Exchequer funding and underlining the Government's commitment to the project. The cost estimate for the core construction elements of the new children’s hospital and the Paediatric Outpatients and Urgent Care centres at Tallaght and Connolly Hospitals was prepared in early 2014. This estimate of €650m was prepared at a time when annual construction inflation predicted at 3% per annum.
The National Paediatric Hospital Development Board was appointed in 2013 to design, build and equip the new children’s hospital. An internationally recognised design team supported by an experienced Board and Project Team are in place, have followed best international design, planning and procurement process at each stage of the project. The Project Team, during the design, planning and tendering phases, has constantly monitored the external environment – tracking construction inflation and market costs.
The recently concluded tendering process for the main construction works determined the actual market cost of the construction elements of the project. Due to annual construction inflation rising from 3% in 2013 to more than 9% in 2017 and the lengthened project timeline in the planning, design and procurement process, the cost of the core construction of the hospital and Paediatric Outpatients & Urgent Care Centres has increased from the original estimate. The increase reflects the increasing volume of activity in the Irish construction industry which is having a significant impact on construction inflation.
The updated capital costs have now been incorporated into the Final Project Brief, and were submitted to the HSE for review. The HSE has now submitted the Final Project Brief to the Department of Health. While I am not in a position to comment on updated costs at this stage, I intend to bring a Memorandum to Government in the coming weeks on the new children’s hospital. Full details of the costs will be set out in the Memorandum for Government.
