Children’s hospital a ‘runaway train’ with costs now €1bn

Anticipated costs for the new National Children’s Hospital are like a “runaway train” and have more than doubled from €480 million to €1 billion, it has been claimed in the Dáil.

Independent TD Mattie McGrath, who opposes the location of the proposed facility at St James’s Hospital in Dublin, said the original estimate was €480 million, but the Government had been quoted as admitting it had breached the €1 billion mark, “which more than doubles the cost”.

The Tipperary TD said “what is staggering about this number is that it excludes the cost of any fit-out or IT equipment, and we all know the cost of fit-out and equipment for hospitals is millions and millions”.

He said the €500 million over-run could have dealt with the public pay problems and covered the cost of the Garda pay claims 12 times over, dealt with the concerns of childcare workers, and it could have funded many crisis points in the health service, including Clonmel hospital in south Tipperary.

“While we all accept that the original budgets are liable to be exceeded, this is phenomenal and staggering, and must be reined in.”

Government spending

Mr McGrath claimed “this is the kind of runaway cost that threatens to deliver a disastrously located hospital that will put children’s lives in danger”.

“I do not say that lightly. But it also substantially increases the likelihood of future costs to other areas of Government spending.”

Mr McGrath asked Taoiseach Enda Kenny if he wanted “to be remembered in 25 or 30 years’ time for a report into this waste and these absurd costs”.

And he questioned what the Taoiseach would do to curtail costs and “try to rein in this runaway train”.

Mr Kenny told him the costs would be the subject of a formal Cabinet memo by Minister for Public Expenditure and Reform Paschal Donohoe and Minister for Health Simon Harris.

“The issues raised in general about the range and costs will be central to that memo.” He said there would be a “focus on the value-for-money process involved”.

Oversight

Mr McGrath said a memo from any Minister was not going to stop the runaway train of costs.

He said there would be a need for serious oversight by the Comptroller and Auditor General and perhaps an inquiry from the Public Accounts Committee. No tendering process could account for a doubling of costs.

Mr Kenny said there had been years of discussions and a decision made on locating the hospital at St James’s Hospital. A maternity hospital would be co-located at the site.

He added that "money is on the table" for Holles Street to move the National Maternity Hospital to the St Vincent's Hospital site.