Investors will be able to get major tax breaks to build small, multi-storey nursing homes under tax changes to be made in this year's Finance Bill.
The cost of building and fitting out nursing homes with 10 beds, rather than the 20 required by the Revenue Commissioners until now, can be written off over seven years.
"New beds are always welcome, but the problem is the size of the subvention available from health boards," said Mr Paul Murray, Age Action Ireland spokesman.
Figures from the Irish Registered Nursing Homes Association show that just 21 per cent of such homes have less than 25 beds, while 43 per cent have between 26 and 39 beds.
Health boards currently pay a subsidy of between €125 and €190 per week for each nursing home bed occupied. It can rise to €600 in hardship cases, but that is increasingly rare.
Nursing homes will no longer have to be kept below two storeys, as long as the buildings secure a fire safety certificate from the relevant local authority.
Seeking details of any lobbying carried out, Labour TD Ms Joan Burton said "potentially lucrative tax breaks" are being offered "to particular investors".
"Many voluntary organisations, such as the St Vincent de Paul, spend a great deal of time and money making detailed representations on the Finance Bill," she said.
However, these representations "have little influence compared to the behind-the-scenes representations" from vested business interests, she declared.
In a letter to the Minister for Finance, Mr McCreevy, she asked that copies of representations be made available to her, and posted simultaneously on the Department of Finance's website.
Meanwhile, hoteliers will be able to claim tax breaks to refurbish older buildings following lobbying of Mr McCreevy by the Irish Hotels Federation.
In his Budget speech in early December, the Minister extended a number of tax reliefs until July 2006 that had been due to expire at the end of 2004, including special capital allowances for hotels.