Written answers

Tuesday, 6 July 2010

Department of Health and Children

Hospitals Building Programme

10:00 am

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 304: To ask the Minister for Health and Children the dates preferred bidders were selected for co-located projects at hospitals (details supplied) in tabular form; and if she will make a statement on the matter. [30081/10]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 305: To ask the Minister for Health and Children the dates project agreements have been signed for co-located projects at hospitals (details supplied) in tabular form; and if she will make a statement on the matter. [30082/10]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 306: To ask the Minister for Health and Children the dates planning permission were granted for co-located projects at hospitals (details supplied) in tabular form; and if she will make a statement on the matter. [30083/10]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 307: To ask the Minister for Health and Children if building work has begun on any of the co-location sites; and if she will make a statement on the matter. [30084/10]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 308: To ask the Minister for Health and Children the estimated length of time it will take to build co-location projects; and if she will make a statement on the matter. [30085/10]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 309: To ask the Minister for Health and Children if she will provide details of capital allowances to co-located projects; the estimated cost of tax reliefs to co-located hospitals; and if she will make a statement on the matter. [30086/10]

Photo of Mary HarneyMary Harney (Dublin Mid West, Independent)
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I propose to take Questions Nos. 304 to 309, inclusive, together.

The Renewed Programme for Government re-affirms the Government's commitment to the current co-location programme.

The Board of the HSE approved the selection of preferred bidders for the Beaumont, Cork University, Limerick Regional, St James's, Sligo and Waterford Regional Hospital co-location projects in July 2007. Project agreements were signed for the Beaumont, Cork, and Limerick projects in March 2008. The St James's project agreement was signed in December 2008. Planning permission was granted by An Bord Pleanála for the Beaumont project in November 2008 and for the Limerick project in May 2009. The Cork project received planning permission from An Bord Pleanála in June 2009. An Bord Pleanála granted planning permission for the St James's project in June 2010.

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

The co-location programme is a complex public procurement process. It is a matter for each successful bidder to arrange its finance under the terms of the relevant project agreement. The co-location initiative, like other major projects, has to deal with the changed funding environment. The HSE is continuing to work with the successful bidders to provide whatever assistance it can to help them advance the projects.

The Finance Act 2009 provides for the termination of the schemes of capital allowances for private hospitals and certain other health facilities, subject to transitional arrangements for projects already in development. Where planning permission is required, the qualifying condition for a termination date beyond 31 December 2009 is that a valid application for full planning permission must have been submitted and acknowledged by the relevant planning authority on or before that date. In such cases, the termination date in the case of qualifying hospitals is 31 December 2013.

Provided that a 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. This includes co-location projects if they arrange their financing on the basis of the capital allowances scheme. The value of the tax relief in each case will depend on the level of qualifying capital expenditure incurred. No tax expenditure has been incurred so far and none will be incurred until construction is completed and services are opened.

The HSE has estimated that, from the start of building, the overall construction and commissioning period for the projects will range from about 28 to 36 months, depending on the scale of the project.

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