Mary Harney (Dublin Mid West, Independent)

The renewed programme for Government reaffirms the Government's commitment to the hospital co-location programme. Preferred bidders have been selected for six co-location projects, including those at Beaumont, Cork University, Limerick Regional and St. James's hospitals. The Beacon Medical Group was awarded the Beaumont, Cork and Limerick projects. Synchrony Healthcare was successful in the case of the St James's project. Project agreements have been signed and planning permission has been granted for these four projects.

The co-location programme is a complex public procurement process. A core principle underlying the co-location initiative is that the private sector should bear all normal business risks. It is a matter for each successful bidder to arrange its finance under the terms of the relevant project agreement. The co-location initiative, like other major projects, must deal with the changed funding environment.

The HSE has been considering proposals put forward by the Beacon Medical Group to advance the projects. For reasons of commercial confidentiality I am not in a position to comment on the elements of these proposals or the specific issue raised in the Deputy's question at this time. I recently met representatives of the Beacon Medical Group at their request and was briefed on progress on the banking issues and other factors they consider to have a bearing on this matter.

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