Simon Coveney (Cork South Central, Fine Gael)
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Question 286: To ask the Minister for Health and Children the moving of the breast cancer treatment unit from the South Infirmary Hospital Cork to the Cork University Hospital; the impact the move will have on patients; the timescale involved; and the cost of the overall move. [27860/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The issues raised by the Deputy are operational matters and have been referred to the Health Service Executive for direct reply.

Simon Coveney (Cork South Central, Fine Gael)
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Question 287: To ask the Minister for Health and Children the position regarding the co-location hospital proposals; the number of these projects which will proceed; the cost of each project to the taxpayer; and the timescale involved in each of these projects. [27861/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
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Significant progress has been made in advancing individual co-location projects. The Board of the HSE has approved preferred bidder status for the development of co-located hospitals at Beaumont, Cork University Hospital, the Mid-Western Regional Hospital Limerick, St. James's, Waterford Regional and Sligo General Hospitals.

Project Agreements for the Beaumont, Cork, Limerick and St James's projects have been signed. Planning permission has been granted for the first three of these projects. A planning application has been submitted in respect of the St James's project.

The necessary preparatory work for the Project Agreements in respect of Waterford Regional Hospital and Sligo General Hospital is proceeding.

Two further projects are at earlier stages of the procurement process.

It is the responsibility of the successful bidders to arrange the financing of the projects. The HSE is continuing to work with the successful bidders to provide whatever assistance it can to help them advance projects in the context of the challenging financial environment.

It is an essential requirement that each co-location project demonstrates clear value for money to the taxpayer. The Finance Act 2009 provides that the schemes of capital allowances for private hospitals and certain other health facilities will be terminated, subject to transitional arrangements for projects already in development. Provided that a co-located private hospital project conforms to the requirements of these transitional arrangements, and otherwise satisfies the general requirements of the scheme of capital allowances, the tax relief will apply. The value of the tax relief in each case will depend on the level of qualifying capital expenditure. I do not accept that, relative to its value, a high proportion of tax would be forgone by the Exchequer in respect of co-location projects as additional revenues would accrue to the Exchequer from the extra activity generated by the construction of the hospitals, the employment arising and the related services provided on which taxes will be paid.

As regards the costs incurred by the HSE on its legal and other expenses in respect of the co-location initiative, there is a requirement on each of the preferred bidders to pay a non-refundable deposit to the HSE on the signing of the project agreement. The intention of this requirement is to allow the HSE to recoup the expenses that it has incurred in this context.

The HSE estimates that, from the start of building, the overall construction and commissioning period for the projects will be about 28 to 36 months.