Geraldine Feeney (Fianna Fail)

I welcome the Minister of State, Deputy Conor Lenihan. I also welcome the opportunity to contribute to this debate on the Supreme Court's decision in respect of the Bill. I am glad the debate has, with one or two exceptions, been well balanced. Senator McHugh is smiling so that may be about to change.

The Supreme Court decided that the Health (Amendment) (No. 2) Bill 2004 is constitutional in some respects. The court agreed that the Bill was justified in making charges in the future but not justified in imposing charges retrospectively. In my opinion, new legislation will be required in respect of the imposition of charges in the future. The decision of the Supreme Court, following the Bill's referral to it by the President, has at least brought legal clarity to the situation. A poorly administered system, under, as other Members stated, various Governments of all hues, has been in place since 1976. We will now have to change it.

The Minister yesterday announced the establishment of a Cabinet sub-committee to deal with the issue of compensation for those who were incorrectly charged. I have no doubt that this sub-committee will arrive at a solution which will be fair to those who were wrongly charged and to those currently paying tax. The health budget consumes an enormous amount of taxpayers' money and is under immense strain. People must realise that Exchequer funds are not unlimited. Potential figures for compensation ranging from €500 million to €2 billion have been mentioned by various parties. The Tánaiste indicated that up to 2,750 people may have been affected. It must be remembered that amounts of this magnitude must be found by cutting expenditure in other important areas, not least the existing health budget. I am glad it has been indicated, in a press release or newspaper report, that the Minister for Finance, Deputy Cowen, intends to make a once-off payment. This will, I hope, help to resolve matters.

While it is incumbent on us to ensure that elderly people are adequately compensated for being incorrectly overcharged, we must also try to ensure that the nation's finances are not put at risk. This is a problem which has been contributed to by all Governments since the days of Liam Cosgrave and Brendan Corish. Like Senator Ryan, I am of the view that it is unfair to lay the blame at the door of any Government or on the shoulders of any Minister. We must try to find an equitable solution. We must devise a reasonable system of compensation for people who have been overcharged. This must be done in a manner which prevents the future enrichment of the legal profession at their expense and that of the general taxpayer. The Health (Amendment) Bill 2004 and the Supreme Court judgment have brought some clarity to a long-running, confused and unsatisfactory situation. I have the utmost faith in the ability of the Tánaiste and the Cabinet sub-committee and I know they will come back with recommendations on a system of compensation that is not alone honest and transparent but, most important, avoids a plethora of court actions.

The Supreme Court judgment has brought about a climate in which it is timely to look at the wider debate as to how elderly people are to be looked after. After all, these are the people who have given us what we have today, and it is only right that they be looked after. I believe it is the view of every citizen that this should be properly handled so as not to rob the Exchequer of every penny.

I was impressed by what Senators Norris and Minihan had to say about people they knew that had elderly relatives in nursing homes who did not need any money back from the State. They would be prepared to invest any rebates in the homes that had looked after their elderly relatives. However, there are people who find it financially difficult when paying for their elderly relatives in care who would welcome whatever compensation is paid. It is right that the moneys are repaid in such cases, bearing in mind the wider picture in terms of the Exchequer's coffers.

Through the Minister of State, I wish the Tánaiste well with her sub-committee. I know whatever it does will be for the benefit of us all.