Brian Cowen (Laois-Offaly, Fianna Fail)

I thank the Ceann Comhairle. As regards the whole question of contract beds, some 2,000 have been put into the system within the last three years, in addition to increased home services. More money will be spent on services for the elderly this year than in previous years. However, as regards this specific initiative, which will not come into play this year because of the enactment required in order to make it operable, that money will not now be used — so, it is a deferral. In the meantime, other initiatives for the elderly, which have totalled €500,000 in the last three years, will continue to be provided as part of the base, to enhance the service. We acknowledge it would be better if this could be brought in sooner. That was our hope, but the legal difficulties must be overcome in the first instance.

The subvention system was introduced in 1993, at a time when the whole house could have been taken under original regulations. We are trying to regularise all that now and have a proportionate response which meets the requirements of the situation. It is not possible to talk about economies on the scale of €440 million and suggest that health, education and social welfare can be exempt from the process, given that €4 out of every €5 of day to day expenditure——

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