Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 28: To ask the Minister for Health and Children, further to Parliamentary Question No. 327 of 8 July 2008, the position regarding the issue of interest owing to long stay patients and the recommendations and conclusion as a result of these meetings; the estimate of the value of interest which is owed to patients; when repayment will commence: the cost of the administration of this repayment programme; and if she will make a statement on the matter. [35282/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Department has been advised by the Health Service Executive (HSE) that it is progressing with the task of transferring past interest retained on invested patient private property accounts and a process to undertake this transfer, initially for the period 2005-2006 has been agreed. The HSE has advised that the issue of tax liability for clients in receipt of such payments has now been clarified by the Revenue Commissioners and that the refund will not give rise to any tax implications for either the individual client or the HSE.

The HSE advises that initial testing of the computer programme to calculate payments to clients is now complete and that the validation of data on details of clients and their patient private property account balances for the first planned tranche of payments is also complete.

The HSE also advises that the final proposal on the process and rules around making payments is currently being completed. Proposals on a number of key issues have been considered including, dealing with very small payment amounts, situations where it is not possible to locate the person entitled to receive the payment and situations where complete information is not available. Final agreement on these processes will then allow for an estimation of the overall cost of administering the refund process.

The overall estimate for total refund of interest remains as previously advised, approximately €31m or approximately €48m when adjusted for inflation by reference to the Consumer Price Index.