Mary Harney (Dublin Mid West, Progressive Democrats)

The Deputy makes a legitimate point. This is the reason we introduced exclusions for farms and businesses. We are trying to encourage the early passing on of businesses and farms to a younger generation. This has been the policy of the farm organisations for many years and it is the reason they welcomed the five-year rule on when one starts to tick the financial box against a farm or business. This cannot happen, however, if a person suddenly falls ill at a relatively young age, can no longer run the farm, requires someone else to run it on his or her behalf and needs care. A person aged 45, 55 or even 60 years cannot reasonably anticipate such an eventuality and an exception has been made for such circumstances.

On Deputy O'Sullivan's point, the relevant provision has been introduced to ensure the Health Service Executive is able to get its money back through contract law, irrespective of whether the mortgage is secured. That is not to say the HSE will have a prior claim. Priority is decided at the time the loan is advanced and registered. For example, a mortgage on a property will clearly have first priority. Moneys owed elsewhere that are registered will be the next priority and so forth. The priority is decided at the point of registration and the HSE claim does not supersede other entitlements.

I emphasise that the scheme is voluntary. The HSE will advance an interest-free loan, known as the ancillary State support, to pay for care. It is capped at three years and, in the case of a couple, the maximum payable is 7.5% of the value of the property. The property's value can be reassessed at any stage if it is in the interests of the care recipient or their representatives to do so and I have no doubt revaluations will occur. When the legislation was being drafted it was assumed property values would increase, whereas the opposite has occurred.

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