Vol. 566 No. 1
253 Ms M. Wallace asked the Minister for Finance the length of time the capital allowance tax relief for nursing homes has been in place; if it has been effective in establishing sufficient beds; the controls there are to ensure appropriate location in terms of supply and demand; and if there is a danger of over supply in some locations and under supply in others. [12209/03]
In budget 1998, I introduced a system of capital allowances for expenditure on the construction or refurbishment of nursing homes that are registered with a health board. The purpose of this measure is to encourage investment in increased nursing home capacity and in improved facilities for the elderly and incapacitated for which there is a growing demand. The Department of Health and Children does not have any figures indicating how many nursing home owners took advantage of the allowance.
As the construction and running of private nursing homes is a private venture, the Government does not control where they are to be built. However, when prospective nursing home owners inquire from the Department of Health and Children about setting up a nursing home, the Department refers them to the health board in that area, which is in a better position to advise them of the potential demand for their services in that location.
In relation to the fact that there may be a danger of there being a surplus of vacant beds in nursing homes in certain locations, my Department has been informed by the Department of Health and Children that there are a number of reasons this may be the case, including the fact that specialised medical facilities may not be available in certain nursing homes to cater for a particular patient who may otherwise have resided in that home. There are also geographical reasons as to why certain nursing homes may be unsuitable for potential residents, who very often prefer to reside in nursing homes close to relatives and friends.
