Mary Harney (Dublin Mid West, Progressive Democrats)

I propose to take Questions Nos. 1 and 2 together.

In July 2005, following Government approval, I issued a policy direction to the Health Service Executive to develop co-located private hospitals on the sites of public hospitals. The aim of this initiative is to transfer private activity from within the public hospital system to new privately-financed and managed facilities and thereby free up approximately 1,000 additional beds for public patients.

The Health Service Executive is at an advanced stage in a public procurement process on the co-location of private hospitals on the sites of public hospitals. I understand that the HSE proposes to issue invitations to tender to the short-listed bidders in the next few days and that tenders are to be returned by the end of April. The HSE will then evaluate the tenders and the successful bidders should be selected in May. Following that a "standstill" period of two weeks is required by procurement law before project agreements can be signed with the successful bidders.

There will be a rigorous value for money assessment of all proposals. Any transaction will be on a commercial basis and will fully protect the public interest. In addition, there will be full adherence to public procurement law and best practice.

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