Mary Butler (Waterford, Fianna Fail) | Oireachtas source

I move amendment No. 2:

In page 18, lines 7 and 8, to delete "first cousin, great-grandchild, great-nephew or great-niece" and substitute "great-grandchild, great-nephew, great-niece or first cousin, or a child, grandchild or great-grandchild of a first cousin,".

This is one of a group of identical amendments I intend to move to expand the definition of those eligible to be considered as the family successor to a family farm or productive business assets under the nursing home support scheme. The definition of “family successor” appears in several sections of the Act, which has led to the need for these identical amendments.

As Deputies will be aware, in 2022 I introduced the changes to the nursing home support scheme that extended the three-year cap that applied to the applicant’s principal private residence to the family farm and business assets where a family successor was appointed. This family successor must continue to run the farm or business for at least a period of six years and have at least consistently applied to running the family asset for at least three of the last five years. This was a really important change to safeguard and protect the viability of family farms and businesses and ensure more family farms and businesses would be handed down to the next generation.

Since introducing these amendments, it became clear that there was a small group of individuals with no close relatives who had sought to benefit from the relief but who could not do so because they did not have a person who met the eligibility criteria for a family successor provided for in the legislation. This was not intended; it was an unintended consequence, and it is important that it be rectified.

The published Bill already includes a provision to expand the definition of “family successor” by including a great-grandchild, great-nephew, great-niece or first cousin. The amendment I am proposing seeks to broaden the definition of first cousin to include more blood relatives in the grandparental lineage to include a child, a grandchild or a great-grandchild of a first cousin, commonly known as first cousins once, twice and thrice removed. This is to address those instances where the choice of a family successor may be limited to a first cousin who is of similar age to oneself and is not in a position to take on the responsibilities associated with running the family asset. This amendment will facilitate the inclusion of younger second- and third-generation relatives in the successor scheme while still remaining under the first-cousin parameters. It is important to emphasise that this is a measure for all family businesses, which we all know are so important to local communities around the country.

In proposing this amendment, I want to emphasise that the role of a family successor under the nursing home support scheme is completely different from that associated with inheritance. By appointing someone as a family successor, they do not become the owner of the farm or business, and there are no implications or changes in terms of inheritance law.

See this speech in context