Mary Harney (Dublin Mid West, Independent)

I propose to take Questions Nos. 83, 87, 99 and 122 together.

The renewed programme for Government reaffirms the Government's commitment to the current co-location programme. The procurement process which is under way will continue. Projects will be developed within the terms of those project agreements which have been signed or which may be signed.

It is an essential requirement that each co-location project demonstrates clear value for money to the taxpayer. There is a requirement on each of the preferred bidders to pay a non-refundable deposit to the HSE on the signing of the project agreement. The intention of this requirement is to allow the HSE to recoup the expenses that it has incurred in this context.

The Finance Act 2009 provides that the schemes of capital allowances for all private hospitals and certain other health facilities will be terminated, subject to transitional arrangements for projects already in development. Provided that a co-located private hospital project conforms to the requirements of these transitional arrangements, and otherwise satisfies the general requirements of the scheme of capital allowances, the tax relief will apply. The value of the tax relief in each case will depend on the level of qualifying capital expenditure. I would add that additional revenues will accrue to the Exchequer from the extra activity generated by the construction of the hospitals, the employment arising and the related services provided on which taxes will be paid.

Preferred bidders have been selected for the Beaumont, Cork University, Limerick Regional, St. James's, Sligo and Waterford Regional projects. The total number of beds proposed in these six facilities, exclusive of critical care capacity, is in excess of 1,200. Project agreements have been signed in respect of the first four of these developments and the proposed capacity associated with these projects comes to 917 beds altogether.

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