Monday, 6 May 2024

€2bn Children's Hospital: Harris is accused of 'running for cover' as he insists there will be 'personnel changes'

Health Minister Simon Harris has moved to shift the blame for the spiralling costs of the National Children’s Hospital (NCH).

The escalating costs have sparked a massive blame game, leading to accusations that Mr Harris and his predecessor as health minister, Leo Varadkar, are “running for cover”.

The Government has now indicated that individuals involved in the back-room planning face repercussions.

Mr Harris insisted there will be “accountability” and suggested there will be “personnel changes” in the governance structure of the project.

The Labour Party has called for Mr Harris to seek resignations from the National Paediatric Hospital Development Board (NPHDB), which is overseeing the building project, including its chairman Tom Costello.

The Children’s Hospital has been at the centre of controversy since it emerged that construction costs soared from €983m to more than €1.4bn. Another €300m is due to be spent fitting out the hospital with ICT equipment. The total cost is expected to be more than €1.7bn.

Concerns were raised at a meeting of the Dáil’s spending watchdog, the Public Accounts Committee (PAC) that costs could top €2bn.

A review of the soaring costs is being carried out by PWC.

The terms of the review say it will “stop short of determining culpability at the individual level”, prompting Opposition criticism.

Mr Harris said yesterday: “Let me be clear – there will be accountability in relation to this”.

He added that: “There will be personnel changes in relation to some people involved in the governance structure.”

Earlier this week he said he has not asked anyone to resign adding: “I will allow due process. But I need accountability. Something went seriously wrong here.”

Labour’s health spokesman Alan Kelly claimed a review which won’t hold any individuals culpable is “pointless”.

He said that if Mr Harris is to “stick to his word”, he should ask NPHDB chairman Tom Costello and project director John Pollock “to step down with immediate affect”.

Chartered Engineer Mr Costello is a former managing director of construction company Sisk at a time when it was involved in major building projects like Croke Park and the Dundrum Town Centre.

Mr Pollock meanwhile, told a PAC meeting on Thursday that the board is “deeply disappointed” at the increase in costs but the focus now is on delivering a hospital of “outstanding quality” for the care of sick children.

Attempts to seek comment from Mr Costello and Mr Pollock through the NPHDB’s PR representatives were unsuccessful last night.

A spokesperson for Mr Harris said the PWC report into the escalation of costs will be finished by the end of March.

She said it will “examine failings and weaknesses” and if it finds the requirement for governance or personnel changes “the minister has stated clearly today he will act upon those.”

She said that Mr Harris acknowledges there are “serious concerns regarding the overrun and particularly with the governance of the project.”

She added: “The minister has powers under the Children’s Health Act to review the composition of the NPHDB and he will keep these matters under review.”

Mr Kelly claimed Government departments are “running for cover because this issue is becoming so toxic” and singled out the Departments of Public Expenditure and Reform (DPER) and the Taoiseach.

He said that officials from DPER – including secretary general Robert Watt – should appear before the Dáil’s spending watchdog, the Public Accounts Committee (PAC) to be quizzed about the cost overrun.

Another PAC member, Sinn Féin’s Jonathan O’Brien, said he has asked that Mr Watt come before the committee to answer questions on what his department knew.

Mr Watt refused to appear before the Oireachtas health committee to face question on the NCH. A statement from his Department last night suggested he will also turn down a PAC request.

It said DPER officials attend the Public Expenditure and Budgetary Oversight Oireachtas committees and it would be “unworkable and completely impractical” them to attend the meetings of each of the 14 Sectoral Committees.

It also said that the Department of Health is the accountable Department and it established the reporting and governance arrangements for the NCH project.

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