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Good morning,
The big political controversy of the past two weeks has centred on the Government’s multi-billion euro broadband plan and whether it represents value for money for the taxpayer.
It’s not just the cost to the voter that has Ministers caught up in knots – there is a potentially serious political price to pay at a time when a general election looms.
People Before Profit TD Bríd Smith laid it out for Minister for Communications Richard Bruton during an Oireachtas committee yesterday.
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“For a party like Fine Gael, known for its prudence in dealing with the public funds, your reputation from here on in will be utterly changed.”
The cost of the national children’s hospital rose from an estimated €800 million in 2014 to €983 million in 2017 and €1.43 billion now. With IT costs this reaches €1.73 billion and does not include the cost of family accommodation, a research centre, excess construction inflation and any other changes to clinical standards.
The broadband plan was originally tagged to cost €500 million but will now require an investment of €3 billion from the taxpayer.
In this context it was not surprising to learn that Minister for Finance Paschal Donohoe recently gave a “stark warning” to Cabinet colleagues about the need to control spending.
He is to hold special bilateral meetings with Ministers running big-spending departments in an attempt to rein in expenditure and hold them to their budgets. Fears abound about another potential large overspend in the Department of Health.
That is why our lead story today makes for very interesting reading indeed.
Martin Wall writes that new HSE director general Paul Reid has said the health service will no longer spend money it does not have and breaching budgets “can no longer be considered an option”.
In a memo to senior management on his first day on the job, Mr Reid has laid down the law.
He said: “We must deliver a financial break-even in 2019, while prioritising the safety of those services that can be delivered within our budget”. This would “build credibility and confidence” so that the health service would secure a sustained and additional investment over the next five to 10 years, he said.
Wall also writes that Mr Reid told senior managers they would be held to account for their role in securing a financial break-even.
The hardline position shouldn’t come as a shock. Late last year, following the revelation the HSE had incurred a €600 million deficit, Paschal Donohoe warned a new budget oversight group would be set up.
He said he would introduce “a new structure in relation to investment in [the] health service for next year”, adding: “we are going to do it because we cannot normalise the level of supplementary that has happened this year.”
The plan was to stop the spiralling costs through an early warning mechanism. The figures would suggest the situation is far from remedied.
The HSE is understood to have recorded a financial overrun of more than €38 million in the first two months of the year, with further losses incurred in March. It received a record €16.05 billion for this year.
Brexit’s back
For almost a month, there was a glorious reprieve from the onslaught of headlines and punditry on Brexit.
But there were some important developments last night. The British government confirmed a Bill implementing the Brexit deal will be introduced in the first week of June as the Conservative Party and Labour Party continue their efforts to agree a deal.
The Irish Government is watching these developments warily.
Taoiseach Leo Varadkar said yesterday: “Nobody can predict the future with any certainty in respect of Brexit, and we must continue to prepare for the various potential outcomes.”
He said the Government does not know if the talks between the Tories and the Labour Party will be successful. But if they aren’t, prepare for yet more votes.
“I am told by the Prime Minister that if those talks fail, Westminster will move to a further set of indicative parliamentary votes, which may help to guide the outcome,” he said.
Denis Staunton has more here. The success or failure of these talks could, of course, also determine the date of our own general election. If Theresa May somehow manages to pass a Brexit deal in a fourth vote, the cover of holding off on an election is wiped away for Fianna Fáil, and indeed Fine Gael. Watch this space.
Best reads
Miriam Lord on how the Taoiseach stunned Labour by telling the party broadband was its idea too.
Colin Gleeson reports on how young people believe climate change is one of the biggest threats.
Paul Cullen and Anne Lucey report that a Kerry hospital says seven patients whose scans were misread have died.
Catholic schools want most preparation for sacraments such as Confirmation and Communion to take place outside the classroom, according to a survey by the Archdiocese of Dublin. Carl O'Brien reports.
Playbook
Dáil
At 10.30am Minister for Health Simon Harris takes parliamentary questions.
Leader’s Questions will be up at noon.
At 12.32pm there will be questions on promised legislation.
Topical Issues will be taken at 14:02pm.
A motion on illegal adoptions in the Mother and Baby Homes is up at 14:50pm.
At 16.50pm Government business will be taken, and the first item is the Coroners (Amendment) Bill 2018. After this the Aircraft Noise (Dublin Airport) Regulation Bill 2018 is up with amendments in from the Seanad.
The Gender Pay Gap Information Bill 2019 will also go through its second stage.
The Dáil adjourns at 22:15pm.
Seanad
Commencement matters kick off at 10.30am.
At 11.30am the Order of Business will be taken.
At 12.45pm, senators will discuss the Copyright and Other Intellectual Property Law Provisions Bill 2018 which, predictably, deals with issues around copyright.
At 14.00pm the Residential Tenancies Amendment No. 2 Bill 2018 will undergo committee stage. This Bill provides for powers to carry out investigations of landlords and impose administrative sanctions. Afterwards, the Civil Registration Bill is up.
Committees
At 9.00am the Joint Committee on Children and Youth Affairs will receive an update on the LGBTI+ Youth strategy from Minister for Children Katherine Zappone
Also at 9.00am the Joint Committee on Health will discuss the national oral health policy with representatives from the Irish Dental Association.
At 09.30 the Joint Committee on Housing, Planning and Local Government will discuss the need for energy-efficient homes.
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