Seán Power (Kildare South, Fianna Fail)

Deputy Twomey raised this on Committee Stage and amendment No. 9 will deal with a number of the issues raised about the donations fund.

This amendment will allow for the fund to be established and managed by the Health Service Executive. The fund will be also be able to receive donations of property and the proceeds of any dispersal shall be placed in it. The HSE will be able to invest the money in the fund but only in institutions that have been authorised by the Irish Financial Services Regulatory Authority. The fund will be monitored and audited to ensure the money in the account will be used appropriately and for what it was intended. Reports on the operation of the fund will be made to the Minister and these reports will be laid before each House of the Oireachtas.

Any money that is donated to this fund will not be subject to capital acquisitions tax liability and the individual making a donation to the fund can specify how he would like that money to be applied within the health services. The HSE will have regard to the wishes of the person making the donation to the fund but, due to practical and administrative difficulties, it cannot provide assurances that the money will be used for the specific institution requested. It can, however, provide assurances that the money will only be used for service improvements in the area of older people or the disability sector.

The HSE has provided initial indications of how it is proposed to administer the fund and any fund allocation decision by the HSE will, as far as possible, assign funds as close as possible to the service and unit that was the source of the funds and it is intended to specify this on the application form.

It is envisaged that the fund will be administered by the HSE, which will include managing and assigning money and accounting for and reporting on the fund. If it is not practical to assign funds to a specific unit, funding should be ring-fenced for the same service in the same area. The HSE intends as soon as possible to establish a working group incorporating representatives of the service areas and the finance unit to agree the criteria for selecting the service improvements that will benefit from the disbursement of the fund.

Any further issues around the administration of the donation fund can be addressed by way of secondary legislation. Section 21 of the Bill also allows the Minister to deal with any emerging difficulties in the scheme.

The fund will be separate from money from the Department of Finance and from the annual expenditure in the Department of Health and Children. It will be used specifically for services for older people or those with disabilities.

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