Dáil Éireann díospóireacht -
Tuesday, 26 Jun 2001

Vol. 539 No. 1

Written Answers. - Nursing Homes.

Trevor Sargent

Ceist:

210 Mr. Sargent asked the Minister for Finance if he has assessed the impact of the capital allowance provisions in the 1998 budget which were designed to proliferate investment driven nursing homes; and if he will ring-fence these capital allowances, as requested by the nursing home industry. [18965/01]

Minister for Finance (Mr. McCreevy)

I am aware of the Irish Nursing Homes Organisation's call for capital allowances for nursing homes to be ring-fenced to profits generated within the sector by those actively engaged in the industry, on the basis that quality of care may not be met by passive investors.

Issues relating to the quality of care rests, in the first instance, with the health boards and ultimately with my Department. I am satisfied that the capital allowances provision which I introduced in budget 1998 for investment in nursing homes are an appropriate measure specifically designed to increase the supply of nursing home places.

In the case of those investors actively engaged in the industry, there is no limit on the use of the capital allowances. Individual passive investors may offset only a maximum of £25,000 against non-rental income. The nursing homes in question must be registered with a health board in accordance with the Health (Nursing Homes) Act, 1990. If the Deputy or the Irish Nursing Homes Organisation are aware of any case where these standards are not being complied with, either the relevant health board or my Department should be contacted.