Health centre stands idle for two years over internal wrangling

Ballymun facility: The controversial new health centre in Ballymun in Dublin remained unopened for two years because the Department of Health believed it was unauthorised, could cost the State up to €56 million and lead to an investigation by the EU Commission into whether public procurement rules had been observed, official files on the project reveal.

The files, released at the weekend by the Department of Health, also indicate the decision by the Minister for Health Mary Harney to finally sanction funding for the project after Christmas headed off a potentially embarrassing court action between health authorities and Dublin City Council and its subsidiary company, Ballymun Regeneration.

The health centre, which is likely to be open to patients in early 2006, was beset by internal wrangling between various State agencies for several years. The plan to develop a new health centre for Ballymun, to replace existing inadequate facilities, has been on the drawing board for nearly a decade. However, following a Government decision in 1997 to press ahead with the social and economic regeneration of Ballymun, it was decided to concentrate public services including a modern health clinic in a new civic centre.

According to the department files, the centre was developed as part of an agreement between Ballymun Regeneration and a developer. Under the plan the health centre would have been leased by the local health authority at a total cost of around €2 million annually. A further €12 million in capital funding would be required to fit out the premises.

A report drawn up for Ms Harney in January maintained the healthcare element of the project had been advanced by the former Eastern Regional Health Authority (ERHA) and the Northern Area Health Board (NAHB) "without the involvement or agreement of the Department of Health and Children".

"The department, in response to a communication from the health board, raised questions in relation to various briefing, procurement and funding matters at an early stage in the process. These were not in turn responded to and work advanced without the knowledge of the department," the report stated.

The file shows that in March 2003 the department warned the ERHA in correspondence marked "very urgent" there had been no approval either from it or the Department of Finance for the project which could lead to a financial exposure of €56 million up to 2016. The report to the Tánaiste last January noted the department had also expressed concerns to the ERHA and the NEHB about the procurement procedures followed. "Their responses do not acknowledge any wrongdoing nor do they explicitly demonstrate compliance with relevant procurement procedures," it maintained.

The ERHA, it is understood, had argued to the department that the health board had been engaging with two State agencies, Dublin City Council and Ballymun Regeneration, and that it was not procuring anything from the private sector. However, the report to the Tánaiste revealed the department was worried that a complaint could have been made to the EU Commission about the procurement process.

The report also strongly recommended that both the Department of Finance and the Comptroller and Auditor General be advised of all steps taken in relation to the project. "It is essential that this department should not draw criticism on itself or on the Minister in seeking to resolve a situation not of its making," the report stated.