The Government is determined to develop a national children's hospital at the Mater site in Dublin despite the decision by the State's largest paediatric centre not to co-operate with the project.
Minister for Health Mary Harney last night emphasised the Government's commitment to the project.
She expressed disappointment at the decision of the directors of Our Lady's Children's Hospital in Crumlin not to participate in the planning of the proposed facility on foot of concerns raised by staff.
However, she expected the 1,500 personnel at Our Lady's would move to the new hospital at the Mater when it was developed.
Ms Harney said funding for the facility, which could cost about €500 million, would be contained in the Government's forthcoming national development plan.
She said she hoped the board of directors at Our Lady's would rethink its decision. The project was moving to a crucial stage where engineering and architectural issues would be addressed, she added.
The board said its decision was taken "against a background of very significant concerns expressed by the medical staff, nursing, allied healthcare professionals and administrative staff in relation to the inadequacy of the site at the Mater hospital, access to the site and the process set up to progress the project".
Hundreds of nurses, doctors, administrative and professional staff had signed letters to the board expressing concerns about the proposed move.
The chairman of the medical board at Our Lady's hospital and a member of the board of directors, Dr Pat Doherty, said last night that staff believed the Mater site was too small, had inadequate transport links and would have limited facilities to accommodate parents of sick children undergoing procedures.
He said the plan would also involve key personnel having to work off-site.
However, in a statement last night, the chairman of the hospital's board of directors, Catholic Archbishop of Dublin Dr Diarmuid Martin, said he had not been present at the directors meeting, had not been made aware that such a decision was imminent, and had had no opportunity to listen to the arguments and make his views known.
Hospital sources said the archbishop generally attended one board meeting each year and largely delegated responsibility to the deputy chairman and other directors.
Archbishop Martin said he was aware of the high level of frustration felt by the staff at Our Lady's. He called for "transparent dialogue" that reached out to and engaged more sensitively with the interests of all involved.
Concerns have also been raised by the National Children's Hospital in Tallaght and by the Church of Ireland.
The HSE said it was disappointed and baffled at the decision of the board of Our Lady's.
