Enda Kenny (Mayo, Fine Gael)

I asked the Taoiseach about page B.6 of Budget 2009, which states, "Health Expenses relief will be granted at the standard rate only from 1 January 2009, with the exception of nursing home expenses which will be standard rated from 1 January 2010". The fair deal legislation will not take effect until some time next year. Is what I quoted a mistake? Alternatively, is the commitment made by the Minister for Defence, Deputy O'Dea, yesterday and repeated by the Minister for Finance incorrect? In other words, will the higher rate continue to apply and not be reduced to 20% from 1 January 2010?

We do not know when the fair deal legislation will take effect, how it will be amended or the circumstances that will arise between now and its passage. This measure has caused consternation for thousands whose elderly kith and kin are either in or are likely to be in nursing homes. If the measure is to apply at a reduced standard rate, it will cause mayhem among families that will not be able to pay. As Deputy Noonan pointed out yesterday, charges in Dublin can amount to €60,000 per year. They may be somewhat lower in other places around the country.

Is what I quoted from page B.6 a mistake? It should be very clear to everybody that it is a mistake and that the intention of the Government, as outlined by the Minister for Defence yesterday, is that the higher rate of tax in respect of medical expenses relief will continue to apply. The measure in page B.6, if introduced, will affect many thousands of elderly folk and, as a consequence, their families. Will the Taoiseach clarify whether it is a mistake and whether the rate of 41% will continue to apply in respect of medical expenses relief for patients in nursing homes?

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