James Reilly (Dublin North, Fine Gael) | Oireachtas source

The increase in asset contribution helps balance the decrease in property values as the income asset disregard has not been changed. I know the Deputy made some points that will be considered in the context of the review of the fair deal. It is based on ability to pay and the rent generated from a property is considered income for the purpose of the scheme. The property is also considered an asset and assessed accordingly. All those in receipt of subvention are entitled to remain on subvention. This was to ensure those in residential care on the introduction of fair deal would not be disadvantaged by the scheme. However, if they choose now to go on to fair deal, it will be at the 7.5% rate.

See this speech in context