Edward Timmins (Wicklow, Fine Gael)

I will highlight a totally unfair flaw in the operation of the fair deal scheme as it relates to land transfers. This is causing great financial hardship for families. I will explain how this operates. This rule must be changed. In over 20 years in politics, I have never come across such an unfair system. I have raised this matter previously. If a family transfers land within five years of the owner entering a nursing home, this land is valued and, if the recipient leases the land, he or she must pay the nursing home 7.5% of the value of the land on an annual basis with no time limit. I will give an example. If 40 acres of land was transferred and valued at €400,000, the recipient would be liable to pay €30,000 per annum to the nursing home. This land might be rented for approximately €8,000. The person who has the land would have to cover the shortfall of €22,000. Where are they supposed to get this money? No three-year time limit such as that which applies to the assets of the person in the nursing home, for example, their house or farm, applies to this so it could go on until such time as the total value of the land has been paid over, perhaps 14 years. This is totally daft. There is no possibility of deferment of payment as there is in the case of the family home. This is therefore a very substantial financial burden on families. Where are these families to get the funds? I know of a case in which this financial burden is causing great financial hardship. I am sure the Minister of State will agree that it is totally unfair and must be changed immediately. I do not want to speak on the other anomalies I have found in the fair deal system because this flaw is so great that the Government must focus on it fully and get it resolved.

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