John Curran (Dublin Mid West, Fianna Fail)

): I understand this issue has been raised on a number of occasions, including on Report Stage in the Dáil. Reference was made to the report recently published by the Oireachtas Joint Committee on Health and Children on primary medical care in the community. The report contains a recommendation for a suite of tax incentives and other supports to be considered to facilitate investment in primary care centres. It is understood the report which was published last month has been submitted to the Minister for Health and Children. It is a matter for that Minister in the first instance to consider the detail of the report and its various recommendations. It is important to bear in mind that the Government's primary health care strategy is being advanced on a number of fronts and the specific issue raised of tax incentives cannot be considered in isolation.

With regard to the funding of the physical development of primary care centres, the HSE is utilising a number of approaches involving both direct funding of the building of such centres with public funds and the development of other centres via leasing arrangements. This would involve the private sector funding and building the centres and the HSE leasing space from the private sector to provide accommodation for HSE staff assigned to primary care teams. In this regard, in the region of 200 primary care centres are under consideration for leasing arrangements, with more than 90 being the subject of contract negotiations. More than 30 of these developments are expected to open this year. All of these developments involve some form of Exchequer funding. If the Government is to be asked to further supplement the existing and prospective levels of direct Exchequer funding in this area with further moneys via tax reliefs, there will need to be a very compelling reason for so doing. It is particularly important, given the fact that other property-based tax incentive schemes in the health sector, including the child care facilities scheme, have also been terminated in the Bill. We are making a worthy contribution to the debate on primary medical care in the community.

The report from the joint committee does not include a reasoned rationale for its recommendation of various tax incentives. Arguments have been made by some that it is necessary to provide tax incentives to encourage doctors and others to move from their existing premises into the new primary care centres. These arguments are not compelling at this time and while a reasoned case on the matter will be examined, it will be very difficult in the current economic environment to provide tax reliefs in a situation where the incremental benefit is neither clear nor certain.

It might be noted that expenditure incurred by doctors or health centres on diagnostic or treatment equipment wholly used for the purpose of their trade already qualifies for tax relief as expenditure on plant and machinery. Capital allowances are available on such expenditure at a rate of 12.5% per annum over eight years. These allowances are provided in recognition of the fact that plant and machinery suffer wear and tear and must ultimately be replaced.

I realise that this recommendation implicitly recognises the process I have outlined in my response involving, for example, the Minister for Health and Children, and does not ask for the introduction of tax reliefs in the Bill. The process will take its course. At this stage I do not intend to accept the recommendation.