Willie O'Dea (Limerick East, Fianna Fail)

There is very little difference between them. The effect of this recommendation would be to remove the minimum bed capacity requirement of 20 beds provided for in the proposed legislation, which introduces a scheme of capital allowances for specialist palliative care units. The minimum bed number of 20 was decided on following discussions with the Department of Health and Children on the scheme. The limit was inserted in the legislation to ensure that developments seeking pre-approval, and the benefit of the capital allowances, will have sufficient capacity and critical mass to provide the necessary palliative care services in the areas where such services are needed. It is important that any palliative care unit developed in the context of this legislation is feasible and sustainable in terms of fitting into the existing plans and needs assessment for the overall development of palliative care facilities in the State.

Minimum capacity requirements are a common feature of other schemes of capital allowances. The scheme of allowances for qualifying mental health centres, for example, has a minimum bed capacity requirement of 20. The same figure applies to the scheme for qualifying sports injuries clinics, which is being phased out at present. The scheme of capital allowances for private hospitals has a 70-bed minimum requirement in respect of a private hospital providing outpatient services and accommodation on an overnight basis and a 40-bed minimum requirement if it provides day care outpatient medical and surgical services only. As the Tánaiste indicated during the Report Stage debate on this Bill in the Dáil, there may be room for some flexibility in this area. This will be examined if and when specific difficulties arise.

The first hurdle for any proposed development is to obtain pre-approval from the HSE, with the consent of the Minister for Health and Children. The HSE must find that it is in line with national plans and needs assessment for the development of palliative care facilities in the State. This requirement, which applies to developments which seek the benefit of capital allowances, has been included for a number of reasons, one of which is to ensure the facility fits in with the overall plan for the delivery of palliative care services in the State. We have discovered that there are gaps in such provision throughout the State. The requirement will also encourage private investors to create more palliative care places where they are badly needed. It has the full support of those involved in this sector. I understand it was put in place at the suggestion of the hospice movement.

Almost anybody can invest in palliative care units. However, EU regulations prohibit those who are running such centres from investing in this manner. I think that is the reason — I will check it for the Deputy. I can inform him that the tax relief system that will apply to palliative care units is almost exactly the same as the system used for nursing homes. I do not know if a minimum amount of beds is required to qualify for nursing home relief. I am informed by officials from the Department of Finance that such developments must involve a minimum of 20 beds. Therefore, the same conditions apply to private nursing homes.