Children’s hospital board knew of €95m overrun in June
Children’s hospital officials knew the cost of the facility was already €95m over-budget in early June 2018 and discussed the potential need for a “contingency” cost containment plan almost a year earlier.
The situation has been outlined in the latest tranche of documents relating to the project which also show repeated concerns about unexpected cost claims by the firms involved.
Records sent to the Dáil’s health and public accounts committees yesterday, which have been seen by the Irish Examiner, show that in June last year, the board was told of a €95m overspend in the project.
The board repeatedly raised concerns in subsequent weeks, before deciding in October 2018 to ask Mazars to conduct a “construction cost escalation” report given to the department and HSE in December.
Minutes of board and finance sub-committee meetings throughout 2018 repeatedly refer to additional cost claims from firms at the centre of the project.
In a separate tranche of files also given to the health committee and PAC yesterday, it was confirmed the National Paediatric Hospital Development Board discussed a “contingency” cost plan in October 2017.
“Discussion took place regarding the overall budget variance versus approved business case,” read the minutes from an October 2017 meeting.
“The committee confirmed that they will have to review this over the coming months and ascertain if there is any possibility to reduce this variance.
In particular it was noted that a backstop/contingency plan will need to be prepared including possible descoping.
Such a backstop plan was prepared but was rejected by the board two months later.
Concerns over the costs of meeting Dublin City Council’s conditions for a fire certificate — and the impact on costs — was also raised.
The June 2017 minutes state that the project had been granted a fire certificate with conditions “which had not been expected”.
“The potential cost of the changes were not yet known but was estimated to be significant,” the minutes read.
There are also references in the memos to a previously unknown “construction and finance sub-committee” of the hospital board whose discussions will be crucial to finding out who knew what about the costs crisis.
Labour health spokesman Alan Kelly said that, despite days of meetings with those involved, he has never heard of the sub-committee.
Sinn Féin counterpart Louise O’Reilly said in a statement that the group’s meeting minutes must also now be released.
