Dáil debates

Thursday, 16 January 2014

Topical Issue Debate

Nursing Homes Support Scheme Applications

4:50 pm

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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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.

5:00 pm

Photo of Alex WhiteAlex White (Dublin South, Labour)
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I thank Deputy Kirk for raising this issue. Under the nursing homes support scheme, individuals contribute up to 80% of their assessable income and a maximum of 7.5% of the value of any assets per annum towards their cost of care, as the Deputy mentioned. The first €36,000 of an individual's assets, or €72,000 in the case of a couple, is not counted in the financial assessment.

An individual's principal residence is only included in the financial assessment for the first three years of their time in care. This is known as the three year cap. The three year cap also extends to farms in circumstances where all three of the following criteria are met in an individual case: the person has suffered a sudden illness or disability which causes them to need long-term nursing home care; the person or their partner was actively engaged in the daily management of the farm up until the time of the sudden illness or disability; and a family successor certifies that he or she will continue the management of the farm. In the case of couples, the measure applies where the applicant suffered a sudden and unforeseen illness and either or both members of the couple have been engaged in the running of the family farm. This stipulation is in keeping with the key principle of joint assessment of couples.

The three year cap was extended to farms because there was concern about the potential impact of the scheme on the sustainability of family farms, particularly in situations where care is required from an early age and for a prolonged period. It was intended to ensure the financial sustainability of farms in cases where a person suffered a sudden illness and did not have an opportunity to put appropriate succession arrangements in place. It affords additional protection because it ensures a person's maximum contribution is fully quantifiable.

The Deputy will be aware that the nursing homes support scheme is the subject of a review which will consider the long-term sustainability of the scheme as well as looking at related aspects of home and community care. Work on the review is ongoing. It is expected that the review will be completed in early 2014 and the report will then be made publicly available.

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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I thank the Minister of State for his comprehensive reply. It is the second criterion which is problematic, the issue of the definition of "actively engaged in the daily management of the farm". There is no problem with the first and third criteria. Could the Minister of State elaborate on that point, as it would relate to the circumstances I outlined?

Photo of Alex WhiteAlex White (Dublin South, Labour)
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The Deputy will appreciate that even if I had all the details before me, it would not be appropriate or possible to address an individual case on the floor of the Chamber. I was trying to match up the circumstances related by the Deputy to the criteria set out here as best I could and I came to the same general conclusion as the Deputy in respect of the second point. I am willing to assist Deputy Kirk in this regard to see if we can nail the situation in respect of the query he made. We can address that either in correspondence or if the Deputy wishes to ask me to pursue it, I will be happy to do that.