Tax breaks for private hospital developers slammed

The Taoiseach has been challenged by Sinn Féin Health spokesperson Caoimhghín Ó Caoláin on the massive tax breaks that the Government gives to multi-millionaire developers of private hospitals. During Leaders' Questions in the Dáil on Wednesday, Ó Caoláin said it was "crazy for this State to reward multi-millionaire developers and speculators for building private medical facilities, while at the same time our public hospital system is in crisis".

Ó Caoláin's challenge came as the Revenue Commissioners revealed some of the billions spent on tax reliefs. Many of these schemes benefit only speculators and property developers and, in the case of at least 33 of them, the cost is still not known. O Caoláin pointed to the hypocrisy of the Minister for Justice, Equality and Law Reform, Michael McDowell and his "favourite Sunday comic" (the Sunday Independent) which in a diatribe last weekend accused Sinn Féin of having "crazy tax policies". Ó Caoláin told the Taoiseach:

"A few days later we had a revelation of just some of the billions which this Government has given away to the very wealthy in this country through massive tax breaks. Earlier this year, when I put the same question to the former Minister for Finance, Mr McCreevy, he was unable to give me an answer. He could not tell us the cost of any of the battery of tax reliefs for developers and speculators. We still do not know the cost of many of these scams.

"Is it not crazy that millions of euro in public moneys are being wasted in tax breaks to subsidise private health business for private profit, while patients in public hospitals lie on trolleys for days at a time and there are not enough nurses? In addition, the masters of Dublin's maternity hospitals have indicated that they cannot cope and will probably have to limit the numbers admitted in future.

"In the forthcoming budget, will the Taoiseach and the Minister for Finance reverse this crazy dichotomy between the Taoiseach's penchant to reward the wealthiest in society and penalise the least well off? In the course of preparing the budget, will the Taoiseach ensure that public money is spent instead on addressing the crisis in our A&E units, in employing mores nurses and extending the medical card qualification to so many in our society who desperately need it?"

The Taoiseach said there were some tax exemptions he would "not defend". However, he studiously avoided answering the question on the subsidising of private hospital developers and about extending Medical Cards.