BAM Ireland have been awarded the contract for the hospital
An extra €300m is now expected to be added to the cost of the new National Children's Hospital.
It's reported that one of the country's largest building contractors BAM Ireland have been awarded the contract to build the hospital in Dublin - at a cost of almost €1bn
Fianna Fáil has criticised the HSE and the Department of Health - saying lack of leadership has led to the cost being more than expected.
Labour spokesperson on health Alan Kelly TD has called on the Minister Simon Harris to urgently explain today how the costs for the children's hospital have spiralled out of control by over 50% when inflation has been practically zero.
"Minister Harris needs to explain how in the space of 2 years the projected costs of the Children's Hospital have increased by almost €350 million to a billion euro.
"This will have serious impact on other capital projects including the National Maternity Hospital, new Emergency Departments and increasing bed capacity across the country.
"Answers are needed on when the Minister knew about the increased costs and what planning has been done to address it.
"It's incredible that the Department and the HSE are accepting cost increases of over 50% when inflation is practically zero."
Mr Kelly said "He needs to provide answers to the following questions today:
Senator Katherine Ardagh says that the project needs to get moving.