Co-location ‘could cost taxpayers €1bn’

CONTROVERSIAL plans to build private clinics on public hospital grounds could cost taxpayers more than €1 billion, Labour last night warned.

Party leader Eamon Gilmore claimed figures he has been given by the Taoiseach’s office show tax breaks for developers and loss of income for HSE beds no longer used by private patients would leave taxpayers footing the bill for a “two-tier” health service.

Health Minister Mary Harney insists the eight-site co-location project will free up public beds currently being used by companies like VHI and prove a value for money solution for HSE patients. Calculations by Brian Cowen’s office show that for every €100m spent by developers over seven years, the gross rate of tax relief would be €41m, said Mr Gilmore.