Michael Creed
Question:161 Mr. Creed asked the Minister for Health and Children the financial incentives available to the private sector to provide private nursing home accommodation. [5385/00]
Written Answers. - Nursing Homes.
Financial assistance is not provided by my Department for the setting up of private nursing homes. However, in 1998, my colleague the Minister for Finance introduced a scheme of capital allowances for private nursing homes. The capital allowances apply to capital expenditure incurred from 3 December 1997 on building new nursing homes, upgrading or extending existing homes or converting existing buildings into nursing homes. The allowance is 15% of the capital expenditure in years one to six, with 10% in year seven. The allowances apply to nursing homes which are privately owned and registered with a health board in accordance with the Health (Nursing Homes) Act, 1990. Provision has been made for a claw-back of the allowances where the building ceases to be used as a nursing home within ten years.
The Minister for Finance also introduced a scheme of tax allowances for convalescent homes in respect of capital expenditure in the 1999 Finance Act. These tax allowances will be available for private step-down facilities which provide an alternative to hospital care for patients recovering from an operation or intensive hospital treatment. The allowances apply to expenditure incurred on or after 2 December 1998 on the construction, extension or refur bishment of a convalescent home as well as the conversion of an existing building into a convalescent home.
The Deputy will be aware that under the Health (Nursing Homes) Act, 1990, health boards provide subventions to assist persons in meeting the costs of nursing home care.