Vol. 534 No. 5
125 Mr. Stanton asked the Minister for Health and Children the grant aid or other financial assistance or incentives available to support and encourage private operators to build, develop and operate nursing homes for older people and for Alzheimer patients; the various ways of accessing such supports available from State and semi-State bodies; and if he will make a statement on the matter. [11210/01]
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, Deputy McCreevy, 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 clawback 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 Finance Act, 1999. 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 refurbishment of a convalescent home as well as the conversion of an existing building into a convalescent home. I understand that further details may be obtained from the Office of the Revenue Commissioners.
