Séamus Kirk (Louth, Fianna Fail) | Oireachtas source

I thank the Ceann Comhairle for the opportunity to raise this Topical Issue. It relates to the fair deal nursing home scheme and the treatment of farmland assets within the context of the formula for calculating liability. Some 80% of assessable income - pensions, other forms of liquid income, etc. - is factored into the equation, as is a maximum of 7.5% of any asset such as farmland or dwellings. A disregard for an individual is €36,000 or €72,000 for a couple.

My query is based on a particular circumstance in my constituency. An applicant was a recipient under the early retirement from farming scheme and, having gone through that phase, is now in receipt of the old age pension. There is a three-year cap on the family home. Under the regulations, a three-year cap may be placed on land assets in certain circumstances. In this case, I understand that the applicant has opted for the ancillary loan facility from the State. The farm is small to medium-sized and the mix of enterprise is such that the cashflow and general income position is not what it might be in another enterprise. Hence, repaying at a later stage or even meeting the ongoing annual commitments had the person gone down that road would have been significantly problematic.

The lady in question, who had suffered a stroke, and her husband leased the farmland to their eldest son, who was actively farming it. They were in receipt of the early retirement from farming payment.

They have gone through that phase and are now on the State pension payment. In those circumstances will they be eligible to apply to apply for the three year cap on the farmland assets? It is not clear, and the phrase "may in certain circumstances" is not very definitive. The Minister of State might not be in a position to provide a definitive reply, but I hope he is. If not, he might refer to me afterwards. It is a genuine case and the circumstances are quite dire. There might be other similar circumstances coming down the tracks that could prove problematic for the fair deal nursing homes scheme in general.

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