Paul Gogarty (Dublin Mid West, Green Party)
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Question 117: To ask the Minister for Health and Children if her attention has been drawn to the background of companies involved in public private partnerships; if she is satisfied on the basis of this information that the Irish taxpayer will get value for money from the co-location projects. [29563/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I presume the question refers to allegations published in a number of newspapers in relation to a company which, I understand, has expressed an interest in operating private hospitals on the sites of public hospitals. The company in question has refuted the charges made in the newspaper articles.

The Health Service Executive are currently engaged in a public procurement process in relation to the co-location of private hospitals on the sites of public hospitals. In view of this, I am not in a position to say anything further in relation to any particular company which may be involved in bidding to build a private hospital on the site of a public hospital. However, I wish to assure the House that bids will be subject to a thorough evaluation by the HSE. There will be a rigorous value for money assessment of any proposal and this 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.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 118: To ask the Minister for Health and Children the status of her strategy to co-locate private for-profit hospitals on public hospital lands; the discussions she has had on this matter since the adjournment of Dáil Éireann; and if she will make a statement on the matter. [29603/06]

Paul McGrath (Westmeath, Fine Gael)
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Question 119: To ask the Minister for Health and Children if the co-location of public and private hospitals on the grounds of public hospitals is still Government policy; and if she will make a statement on the matter. [29577/06]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 143: To ask the Minister for Health and Children to report on progress in implementing her policy of building private hospitals in the grounds of public hospitals. [29585/06]

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 210: To ask the Minister for Health and Children the way the policy of co-locating private hospitals on public hospital lands relates to the commitment to provide 3,000 additional public beds under the health strategy; and if she will make a statement on the matter. [29602/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 118, 119, 143 and 210 together.

This Government is committed to exploring fully the scope for the private sector to provide additional capacity in the health system.

In this context, I issued a policy direction to the Health Service Executive in July 2005 which is aimed at freeing up 1,000 additional beds for public patients. This will be achieved through the development of private hospitals on the sites of public hospitals and the transfer of private activity to those hospitals thereby freeing up capacity for public patients.

The provision of up to 1,000 additional beds for public patients in this way will contribute to the achievement of the Government's commitment in the Health Strategy to increase acute hospital capacity by 3000 beds. It will also have the following benefits:

maximising the potential use of public hospital sites;

promoting efficiency among public and private acute service providers;

promoting greater competition in the supply of hospital services; and

offering improved quality and choice to all patients.

The HSE recently advertised for expressions of interest for the construction and operation of private hospitals on the sites of ten publicly funded hospitals. The project will be procured by utilising the new competitive dialogue tendering procedure. The HSE received a large number of expressions of interest. The HSE has pre-qualified a number (approx 6 bidders per hospital site) of successful candidates to progress to the next stage. Invitations to participate in dialogue issued to the pre-qualified bidders in mid September 2006 with a deadline to submit outline proposals by late October. The aim is to select up to three bidders in respect of each site who will be invited to tender to build and operate a private hospital on the site. An operator may be a not-for-profit organisation or a for-profit organisation. Both types are already providing services in Ireland.

Proposals will be subject to detailed evaluation by the HSE. The procedure 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 foregone. 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.