Dara Calleary (Mayo, Fianna Fail)
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Question 58: To ask the Minister for Health and Children the financial implications for the taxpayer following his decision to axe co-location. [7524/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 68: To ask the Minister for Health and Children the total cost to the State of the now abandoned scheme for the co-location of private for profit hospitals on public hospital sites; and if he will make a statement on the matter. [7537/11]

James Reilly (Dublin North, Fine Gael)
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I propose to take Questions Nos. 58 and 68 together.

It is the Government's intention, as set out in the Programme for Government, that the existing private hospital co-location policy will come to an end.

The HSE has informed my Department that the extensions granted in respect of the project agreements for the four most advanced co-location projects expired at the end of March. This was a matter for the HSE as the Minister for Health is not a contracting party in accordance with the provisions of these agreements. The HSE has also contacted the private parties involved with the other co-location projects, which were at earlier stages of the procurement and contractual processes, to inform them that it will not be proceeding with those projects.

A core principle underlying the co-location initiative was that the private sector should bear all normal business risks. The HSE has indicated that the private partners paid a non-refundable deposit of €350,000 in respect of each of the four projects where project agreements were signed. The intention of this requirement was to allow the HSE to defray the legal and other costs involved. My Department has requested the HSE to provide the information sought by the Deputies in relation to the net cost of the co-location competition held by the Executive and I will be in further communication with them as soon as possible.