The Minister for Finance has said he takes “full responsibility” for decisions made regarding funding for the new National Children’s Hospital.

An independent review into the cost overrun of the project has warned that the final cost could exceed €1.7bn.

It also found that, at this stage, there is little scope for reducing the cost.

In all, the report uncovered weaknesses in terms of set-up, planning, budget, execution and governance of the project.

Responsibility

On the Pat Kenny Show this morning, Finance Minister Paschal Donohoe rejected claims politicians were trying to shirk responsibility for the scandal.

“I take full responsibility for decisions that were made in relation to funding and the resourcing of that hospital,” he said.

“There was a time when a politician would have sat in front of somebody like you Pat and said I did this on the basis of information and advice that was available to my department or to me and seek to put the focus there.

“Yes information and advice was made available to me but the responsibility does sit with me as Minister for Public Expenditure.”

New Childrens Hospital. Image: RollingNews.ie

St James's site

He said the huge increase in cost of the project came about because the Government “underestimated the complexity of it and underestimated the risk of it.”

He said he still stands behind the decision to locate the facility at St James’s Hospital.

“A number of different locations were considered for the hospital – including in my own constituency beside the Mater Hospital – and I believe the policy decision that was made in relation to co-location at James’s Street was the right decision,” he said.

“The consequence of that however is that it has had a material effect on the cost.

“But as I have said, even though the cost estimate was low I accept that when that was presented to us, on the basis of what we now know from the PwC report, it is clear that we underestimated the complexity of it and underestimated the risk of it.”

Children's Hospital

He said he shares the “sense of outrage” and “the sense of disappointment” the public feels about the scandal noting “that is my money as well, I am a tax-payer too.”

He said the Government will do all it can to maintain the costs of the project “better in the future” and pledged to ensure that all major projects in the future will have a “tendering process the reflects our learning’s from this.”

He said he would be held to account if the cost of the project deteriorates further.