Seán Power (Kildare South, Fianna Fail)

Home care packages for older people deliver a wide range of services. They are delivered through the Health Service Executive by a range of providers, including the Health Service Executive, voluntary groups and the private sector. They consist of a mixture of grants, contracted care services, therapeutic input and equipment and other such community services to facilitate the older person to remain living in his or her home.

Home care services provided directly by the Health Service Executive do not generally come within the scope of VAT, as public bodies are not regarded as taxable persons. It does not charge VAT on the services it provides and cannot recover VAT incurred on its input costs.

Where home care services are provided by private companies for a consideration in the course or furtherance of business, the provider may be obliged to register and account for VAT at the appropriate rate depending on the type of service provided. Home care provided to individuals consists of services which may be liable to VAT at different rates. The current VAT treatment of such services is in accordance with the EU Sixth VAT Directive, with which Irish VAT law must comply.

Officials from the Department of Health and Children, the Revenue Commissioners, the Department of Finance and the Health Service Executive are examining VAT liability for home care services provided by private companies to older people. In particular, they are trying to ensure the home care services provided under home care packages are exempt from VAT in a manner that complies with EU law.

The Government has made services for older people a priority. This means supporting older people in dignity, to live in their own communities, for as long as possible. Additional funding for services for older people and palliative care, amounting to €150 million, has been allocated in the 2006 budget. This is the largest ever increase in funding for services for older people. It is important to have a high quality of residential care available for those who require it and additional funding was also made available in the 2006 budget for the subvention scheme.

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