Tom Parlon (Laois-Offaly, Progressive Democrats)

The recommendation proposes a change to the definition of "qualifying hospital" in the tax Acts so as to introduce a new scheme of capital allowances for psychiatric hospitals based on the existing scheme that exists for private hospitals. When the scheme for capital allowances for the construction of private hospitals was introduced in 2001, the question of including psychiatric services within the scheme's ambit did not arise. Several representations were made on the issue and it was raised on Committee Stage in the Dáil. The Minister for Finance, Deputy Cowen, stated that he was not without sympathy to the proposition. However, given the announcement in the budget of a review of tax reliefs and exemptions, it may not be an opportune time to introduce a significant new relief. I hope the Senators will agree to allowing consideration of the proposal for capital allowances for psychiatric hospitals between now and the next budget.