Brian Lenihan Jnr (Dublin West, Fianna Fail)

In respect of the cost of capital allowances, we have stated from the outset that we can achieve 1,000 new public beds for a tax cost of approximately €420 million, less than half the full cost. This estimate is conservative and does not take account — in favour of the Government argument — of the VAT and income tax that will accrue to the Exchequer during construction. This rationale is frequently used for film relief, which has attracted strong support on all sides of the House. There is, therefore, no €2 billion. Deputy Twomey's calculations are wrong.

The Minister published the policy direction and supporting documentation relating to this area last year. The latter include details of the investment appraisal framework suggested by Prospectus Consultants for the HSE. I assure the House that, in respect of each co-location proposal, a rigorous value-for-money assessment will be carried out by the HSE to demonstrate the net benefit to the State. The Minister has required this of the HSE from the start and no project can proceed without the value to the State being demonstrated first. The National Development Finance Agency is assisting the Department of Health and Children to ensure that the financial assessment method being applied by the HSE is robust.

Our policy is to achieve the best possible care for all people, using the mix of public and private finance and provision that has been a long-standing feature of our health services.

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