MINISTER FOR Health Mary Harney has called on Fine Gael health spokesman Dr James Reilly to provide her with any information he may have in relation to the tax issues of companies involved in private hospital co-location.

She suggested that he provide her with the information after Dr Reilly asked the Minister: "Are all companies involved in the co-location process tax compliant, and have such companies filed tax returns on time?"

Ms Harney said "the tax situation of companies is a matter for the HSE. However, I will seek to establish the facts." Dr Reilly seemed "to be operating on foot of some information he may have which I would be very happy to receive".

Dr Reilly said he was also concerned about the legal implications "for those who have signed contracts which do not materialise."

Co-location was an "ongoing quagmire" and "has not delivered a single extra bed to the country. The Minister has removed 500 beds this year and will remove a further 600 next year," he added.

"What recourse is there for the taxpayer if these companies do not proceed with these contracts?"

He believed there was a funding issue "long before it was known the economy had turned".

Ms Harney was unaware of the tax position of any firm involved. "It is not a matter for me," she said.

She said she was "not involved in the selection of tenders or in negotiations with bidders".

The co-location initiative aims to free up more public beds in hospitals by creating private facilities in the grounds of public hospitals.

Ms Harney said she was satisfied that co-location remains the fastest, most efficient means of increasing public bed capacity in acute hospitals.