Yesterday, the Joint Committee on Health met to discuss the construction of the national children's hospital. Not for the first time, the public heard revelations that there are more rising costs, and this is an issue of major concern for people. This project was originally costed at €790 million in 2013. It went up to €983 million in 2017, and then we were told in December of last year that there was a guaranteed maximum price of just over €1.4 billion. However, yesterday we were informed by the chair of the National Paediatric Hospital Development Board, Mr. Fred Barry, that in addition to the final costing, there has now been a considerable amount of claims for additional money from the contractor. Time extensions are also being requested, which will undoubtedly push up the price far beyond the guaranteed maximum price the Taoiseach cited. This, we are told, is a result of construction inflation, which is higher than the 4% provided in the contract that was signed with the contractor, BAM. It was well flagged by many people, including my colleague Deputy Jonathan O'Brien, that construction inflation, which is at 7.5% at present, was running at nearly double what is set out in the contract. We are told that this project is facing risks of delays in meeting important milestones, and these delays would add around €10 million for every month it fails to meet its target. This is very concerning, and it demands a robust response from both the Government and the Minister for Health. What is being done here, because this is simply a runaway train? The amount of public money being spent on this project is not warranted to this level, and the public sees that. We cannot allow this situation to get further out of control. A plan needs to be put in place by the Government to ensure these costs are controlled once and for all.

The cost overrun is already having an impact. There are real concerns in communities right across the State about the impact it is having on them and the commitments that have been made to fund other projects. We heard from the Irish Fiscal Advisory Council that unless the Government gets a handle on dealing with major infrastructure projects, or if those projects continue to run over at their current level, €2 billion per annum will have to be cut from smaller projects. These include flood defences, road repairs, school extensions, and other projects that are vital in local and rural communities. That is the reality. This is an issue in the paediatric unit at Cork University Hospital, for example, as well as in the Regional Hospital Mullingar, where the commitment for a new MRI scanner is now in question. What is happening with the second cath lab in University Hospital Waterford, which is also in question as a result of these overruns? What about the proposed upgrades in Cavan, or the community hospitals in Stranorlar and Ramelton in County Donegal? I could go on. The public wants to know what is the final price of this project. How much more is this project going to run over? We need answers to that. The public demands straight answers from this Government as to what projects will be cut or delayed as a result of these overruns. It is now June. We are six months into this year and there has been no clarity in respect of the HSE's capital plan for 2019. It is ludicrous that we still do not have a capital plan six months into the year. We need straight answers. We need to know what the final figure is and we need a Government that is getting a handle and a grip on runaway projects.

First, the new head of the National Paediatric Hospital Development Board, Mr. Fred Barry, appeared before the Joint Committee on Health yesterday and he answered the questions in full. There was no effort to spin this in any way. This is an honest answer. The position we have is that we know mistakes were made in the early development of this project. The Government has been very open on that, and Ministers have been before the committee on numerous occasions dealing precisely with this. A new approach has been adopted that included appointing a new development board, which is now in place. No project of this scale is going to be risk-free. If the Deputy thinks this can be run without having some risks managed between the State and the contractor, that is not the reality. As the Deputy is aware, one issue in the contract was that if there was construction inflation beyond a certain figure, the State would share some of that risk. That was in the contract. No one concealed that, and it is not a new revelation that came from Mr. Barry's presentation. That was part of the contract that is in place. In terms of the mistakes that were made, the PwC report issued recommendations, and those recommendations are being implemented. A final plan will be presented as to how we make sure this project is managed in the most effective way, and that is being put in place. The Deputy mentioned that Mr. Barry suggested there were delays in some parts of the works but Mr. Barry equally emphasised that at this point, there are many opportunities to mitigate these delays over the lifetime of the project. While this project is expensive, there is no evidence anywhere that it could be done any cheaper.

In July, we will start to see the project take shape within Blanchardstown, where patients will be treated for paediatric and other needs. This project is going live. Substantial progress is being made on the construction, and it is going to be managed tightly, with tight oversight, drawing on the lessons we have learned. Honestly, mistakes were made. There had not been a major hospital project built in 25 years. One may ask why that was the case, but this one will be managed carefully. Mr. Barry has a very strong track record, and the contract will be managed. Any overruns that have to be paid for by the State, because they fall under the contract, will only be paid after a full audit and due diligence is applied to ensure that we are only paying for provisions that were under the contract. We have to manage that contract tightly, and it will be, but we still have to remember that this is providing state-of-the-art care for very sick children and their families. There will be 23 operating theatres, and it will provide a suite of services for which Members on all sides of this House have been calling for years. It is a project that is worthy of support. We have to manage the costs but we also need to deliver the services for the children.

Nobody disputes the need for a national children's hospital. What people question is why we are providing private units within that public hospital, and why mistakes continue to be made. Why were we told that there was a guaranteed maximum price of €1.433 billion and are now hearing that the contractor is making additional claims? It will cost €10 million extra per month for every month that the project is delayed, and we are told there are risks of delay. Why did the Government sign off on a contract in December which stated that the contractor could apply for additional claims if inflation ran over 4%, when we know that construction inflation is 7.5%?

It is not just that mistakes were made in the past. We know about them and they have been well ventilated. The Government is still making mistakes with this project.

The Minister did not answer the question on what projects will be cancelled or delayed as a result. It is madness that we are six months into the year and still do not have the HSE's capital plan for 2019. This goes to the heart of the Government's mismanagement of the health service's funding. For the past two days, we have raised the issue of home help hours. It costs €6,000 per week to keep someone in an acute hospital bed, but home care packages cost €160 per week. The Government and the HSE have decided to suspend all home help hours for new applicants up until November. It makes no sense whatsoever.

The Minister to respond.

Will the Minister answer the questions about the initiatives that would deal with this issue? What projects will be delayed? What will be the final figure? Why did the Government approve a contract when it knew that construction inflation was nearly double what was laid out? Will the Government support our Bill-----

Deputy, please.

-----which would allow for abnormally low tenders to be ruled out and for contractors’ past experience to be factored into the equation?

I have to facilitate others.

The provision for private care will be at a low level. There are type B consultant contracts in place that allow for on-site private practice of up to 20%. The new building had to include some outpatient department, OPD, consulting facilities in the form of a private clinic, comprising eight outpatient consulting rooms.

It is a shame that-----

It is not a major element in what is a major public project to provide care to children who are in need.

The Deputy continues to pretend that the contract does not make provision. There are conditions whereby, if the contractor can show that certain events have happened and been duly audited, there is an exposure to the State. That is contained within the contract and it is not going to go away by shouting louder. It is a provision in the contract that was negotiated. The Deputy may say that a different contract should be negotiated, but we are not proposing to retender the project. If we did so, we have every reason to believe that we would incur a more expensive bill and do contrary to what the Deputy is advocating.

The HSE's capital budget will be presented when it is completed.

Well, that is an answer.

Work is progressing on that.

It should be well worked now.

I cannot comment on Sinn Féin’s Bill. I will have to refer that to the Minister, as I have not had a chance to read its content.