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Memo reveals Harris was informed of €191m children's hospital cost overrun in August

Health Minister Simon Harris has again insisted he did not know about the full scale of the cost ...
Newstalk
Newstalk

12.54 7 Feb 2019


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Memo reveals Harris was inform...

Memo reveals Harris was informed of €191m children's hospital cost overrun in August

Newstalk
Newstalk

12.54 7 Feb 2019


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Health Minister Simon Harris has again insisted he did not know about the full scale of the cost overrun for the new children's hospital until November.

It comes after it emerged that health officials were told in August and September last year of rising costs at the national children's hospital.

In a memo dated August 27th 2018, Minister Harris was informed construction was €191 million over previous estimates.

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However, the memo separately highlights that the main contractor had submitted €200 million more in additional cost claims.

A spokesperson for Minister Harris said the board viewed that second figure "as being a late submittal which was an attempt to deliberately frustrate the process".

The final cost relating to the €200m claim was 'significantly reduced', officials suggest.

The spokesperson adds: "It remains the position he did not know about the final figures until November 9th. He informed the Taoiseach and the Department of Public Expenditure and Reform on that date. 

"The work undertaken from August on was essential to enabling the Minister to bring to Cabinet a thorough assessment and a clear recommendation."

Artist's image of planned National Children's Hospital

Minutes from the Hospital Project Board, meanwhile, show Department of Health and Health Service Executive (HSE) officials were told in September 2018 about the possible cost overruns of €391m.

Minutes of the Children’s Hospital Project and Programme Board meeting in September show the head of the Department of Health raised "significant concern" about the cost of the project.

The Government has repeatedly said it only became aware of the full-scale of the estimated €450 million overspend in November - a figure detailed in a memo dated November 9th.

Opposition reaction

Opposition parties have this evening been reacting to the release of the memos.

Sinn Féin claimed the Taoiseach must now remove Minister Harris from his position.

The party's health spokesperson Louise O'Reilly said in a statement: "[Minister Harris] was aware of a massive cost overrun at the hospital while he and his government were putting together the budget for this year yet he never mentioned it till after the budget was announced.

“Minister Harris’ position is completely untenable.  The Taoiseach must remove him from his position."

Fianna Fáil's Stephen Donnelly, meanwhile, said the memos contain "very serious revelations".

Deputy Donnelly argued: “The statement issued tonight by Minister Harris looks like at attempt to avoid accountability and the pressing need to acknowledge error on his part. His remarks make matters worse.

“The drip-feeding of important documents that we have seen up to this point is not good enough. In the best interest of the public and this vital project, all documents related to this National Children’s Hospital overspend must be immediately published."

Overrun

Speaking at the Oireachtas Health Committee on Wednesday, Minister Harris said he was "frustrated" at some of the coverage of the hospital scandal.

Reports had suggested the increasing cost of the hospital was talked about at meetings in 2017, almost a year before Minister Harris found out.

However, he told the committee those overruns were a different situation that did not require Government action or extra funds.

Health Minister Simon Harris (left) with Taoiseach Leo Varadkar for the official sod turning ceremony on the national children's hospital site in 2017 | Image: RollingNews.ie

Minister Harris said this was made clear to Oireachtas committees last week.

He also hit back at some of the coverage of the story.

"I'm somewhat frustrated at the characterisation that I've heard of this - because I've heard a characterisation that 'the Minister heard in August and nothing happened till November' - nothing could be further from the truth.

"The paper trail that you have and the testimony that you from my officials, from the members of the National Paediatric Hospital Development Board, from the HSE and indeed from my own mouth at this committee last week show that not to be the case."

He said he could not possibly have known about the scale of the overrun at until November last year.

He said that, in 2017, the extra expense was estimated at €61m and the board was told the project had to come in on budget.

Further overruns were raised in August of last year - but Minister Harris said he could not have known about the scale of them until later in the year.

"I didn't know accurate figures until the 9th of November," he said.

"I have learned as Minister for Health - I have learned the hard way at times - the importance of actually establishing accurate and factual information before throwing it out into the public domain under the record of the Dáil."

Reporting by Sean Defoe, Jack Quann and Stephen McNeice


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