The Prince Charles Hospital

Part of 2. Topical Questions – in the Senedd at 1:55 pm on 12 December 2018.

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Photo of Vaughan Gething Vaughan Gething Labour 1:55, 12 December 2018

Thank you for the questions. On the slightly mischievous suggestion that there should be a ban on future contracts, well, we'll take a prudent approach to anybody bidding for a future contract within the national health service or any other major capital challenge where the Welsh Government is seeking to award a contract. And, obviously, the challenges around the financial health of this company would be a factor in taking into account any future choices.

What we currently have, though, is that Interserve have already completed phase 1A of the refurbishment in Prince Charles Hospital, and this work is required because of a fire safety notice— so, undertaking that work and removing asbestos from the building. They've been awarded the next phase—phase 1B—and that was ordered several months ago, before the concerns were as sharp or as highlighted as they are now. So, they're continuing work that is already under way, and it is the point that that work is being undertaken in phases and resource being delivered in phases. We're not paying all of this money upfront and taking a huge risk with either the public finances or indeed with the work being undertaken.

It is the case that our 'Designed for Life' building framework agreement is in use and that does allow for us to both monitor the work that's been done and also, potentially, to move to an alternative supplier on that framework if any company should fail to meet their obligations. And that has happened in the past on smaller contracts, either part way through the delivery of a project, or, indeed, having won a tender. For example, a project in Ceredigion—the Cardigan Health Centre—after the initial award on 'Designed for Life', there was a need to relook again at who that person was, because the initial bidder couldn't meet the obligations they had undertaken.

So, yes, there is monitoring, yes, there is a plan, yes, there are obvious mitigation measures being considered by both the health board and the Government should Interserve fail to meet their obligations. But, at this point in time, the best information I have, and the health board have indeed, is that we expect Interserve to meet their obligations. But, obviously, it is a matter we'll keep under close review.