John Deasy
Question:10 Deputy John Deasy asked the Minister for Health and Children the status of her co-location hospital plan; and if she will make a statement on the matter. [20590/09]
View answerThursday, 21 May 2009
Questions (13, 14, 15)
Ruairí Quinn
Question:44 Deputy Ruairí Quinn asked the Minister for Health and Children the co-located hospitals on grounds of public hospitals which are considered to be advanced sufficiently to be included for tax breaks following Budget 2009; the information she has regarding plans to proceed with the co-located hospitals proposed; and if she will make a statement on the matter. [20475/09]
View answer
Bernard J. Durkan
Question:132 Deputy Bernard J. Durkan asked the Minister for Health and Children the number of public hospital sites which have to date been the subject of co-location plans and expenditure; the extent of the site works undertaken and completed to date; the locations identified for such proposals in the future; and if she will make a statement on the matter. [20903/09]
View answerWritten answers
I propose to take Questions Nos. 10, 44 and 132 together.
The aim of the co-location initiative is to make available additional beds for public patients in public acute hospitals through the transfer of private activity to co-located private hospitals. While the co-location initiative is an efficient means of delivering extra bed capacity, it is a complex process. The funding environment has changed significantly in the last number of months and this has affected both the public and private sectors. The successful bidders are working on the details of contractual terms with banks and other arrangers of finance. The HSE is continuing to work with the successful bidders to provide whatever assistance it can to help them advance the projects.
Significant progress has been made in advancing the individual projects. The Board of the HSE has approved preferred bidder status for the development of co-located hospitals at Beaumont, Cork University Hospital, the Mid-Western Regional Hospital Limerick, St. James's, Waterford Regional and Sligo General Hospitals. Project Agreements for the Beaumont, Cork, Limerick and St James's projects have been signed.
Planning permission was granted by An Bord Pleanála for the Beaumont project late last year. Planning permission for the Cork and Limerick projects has been granted by the local authorities concerned and appealed in each case to An Bord Pleanála. A planning application for the St James's project has recently been submitted.
The necessary preparatory work for the Project Agreements in respect of Waterford Regional Hospital and Sligo General Hospital is proceeding.
Two further projects are at an earlier stage of the procurement process. A tender in respect of Connolly Hospital has been received by the HSE and is under consideration. Work is being undertaken on the drafting of the Invitation to Tender (ITT) for Tallaght Hospital.
The Minister for Finance announced in the Budget on 7 April that the schemes of capital allowances for private hospitals and certain other health facilities were being terminated subject to transitional arrangements for projects already in development. The relevant provisions are set out in the Finance Bill 2009 which is currently before the House. The termination date is 31 December 2009 but under the transitional arrangements, if certain qualifying criteria are met, the termination date for qualifying expenditure is extended.
Provided that co-located private hospitals conform to the requirements of these provisions the tax relief will apply. The qualifying conditions depend on the type of work to be carried out and whether or not the work requires planning permission. Where planning permission is required, the qualifying condition for a termination date beyond 31 December 2009 is that a valid application for full planning permission be submitted on or before that date and be acknowledged by the relevant planning authority. In such cases, the termination date in the case of qualifying hospitals is 31 December 2013. Under the capital allowances scheme applying to private hospitals, allowances are available to investors only from the year in which services at the relevant hospital have commenced. No tax expenditure has been incurred so far and none will be incurred until construction is completed and services are opened.