HSE cannot afford to build national children’s hospital, says chief

The head of the Health Service Executive (HSE) has said it cannot afford to build the €1 billion new national children's hospital.

The HSE cannot progress the project at St James’s Hospital in Dublin “within the current capital envelope,” director general Tony O’Brien has warned TDs.

The health service is not even in a position to sign contracts on the project at present, Mr O’Brien told a private session of the Dáil Committee on the Future of Healthcare yesterday.

He was responding to questions from members after telling the committee the HSE needed €1 billion a year to renew its infrastructure but is currently receiving less than half this amount.

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Last Friday, the contract to build the much-delayed project was awarded to BAM Ireland at a price close to €1 billion. This is more than €300 million more than the projected price when planning permission was granted last year and more than €500 million more than the predicted cost when St James’s was chosen in 2012.

The contract has to be approved by the HSE directorate before a final decision is made by the Government.

Additional funds

Anti-Austerity Alliance–People Before Profit health spokesman Mick Barry said extra funds must be provided to finance the project. He called on Minister for Health Simon Harris to make a statement on the issue without delay.

Mr O’Brien said there was not sufficient funding to complete Government priority projects in health due to construction inflation, and higher specifications to comply with clinical standards and building regulations.

Aside from the children's hospital, these projects include the €380 million renewal of nursing homes, the €295 million transfer of the National Maternity Hospital to St Vincent's hospital, and the €160 million move of the Central Mental Hospital to Portrane. It is also proposed to spend €110 million on oncology services, and €100 million apiece on primary care centres and disability projects.