Brian O'Shea (Waterford, Labour)
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Question 124: To ask the Tánaiste and Minister for Health and Children when she will announce the terms for private investors in regard to public private partnerships to co-locate private hospitals in the grounds of public hospitals; and if she will make a statement on the matter. [25427/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Health Services Executive has advertised for expressions of interest for the construction and operation of private hospitals on the campuses of 11 publicly funded hospitals. Interested parties have been invited to express an interest for one or more projects and required to complete and submit a pre-qualification questionnaire before the end of June 2006.

Proposals to build and operate private hospitals on the sites of publicly funded hospitals will be subject to a thorough evaluation by the HSE which will have regard to a detailed assessment of need, and existing and planned capacity on a particular site and within the relevant region. It will also provide for a rigorous value for money assessment of any proposal and will take account of the value of the public site and the cost of any tax expenditure. Any transaction will be on a commercial basis and will fully protect the public interest. In addition, there will be full adherence to public procurement law and best practice.

Persons who invest in such private hospitals may be able to avail of the capital allowance scheme for investment in private hospitals if they meet the terms of the existing legislation on capital allowances.