Finian McGrath (Dublin North Central, Independent)
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Question 166: To ask the Minister for Health and Children the position regarding a matter (details supplied). [43029/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Board of the HSE has approved preferred bidder status for the development of co-located hospitals at Beaumont Hospital and at five other public hospitals. Project Agreements for the Beaumont Hospital project and for two of the other projects were signed in March 2008 and preparatory work for the Project Agreements for the three remaining projects is proceeding. Planning permission was granted by An Bord Pleanála for the Beaumont project earlier this month and the decision of An Bord Pleanála is awaited in the case of the other two projects where planning has been granted and appealed. Two further projects are at earlier stages of the tendering process.

I am satisfied that co-location remains the fastest, most efficient means of increasing public bed capacity in acute hospitals. While it is certainly the case that the funding environment has changed radically in the last six months — in relation to both public and private sectors — the co-location initiative, like other major projects, has to deal with this.

I understand that the successful bidders are working on the details of contractual terms with banks and other arrangers of finance in the very difficult and changed credit environment. The HSE is continuing to work with the successful bidders to ensure that the co-located hospitals can be built and brought into operation as soon as possible and that the goal of achieving new public acute bed capacity at value for money to the State is achieved.