Seán Power (Kildare South, Fianna Fail)

The effect of amendment No. 25 will be to facilitate the VAT exemption on privately provided home care. Under the current system, home care services provided by health boards or voluntary bodies do not generally come within the scope of VAT. However, services provided by private home care providers, whether through the HSE or directly to the client, are subject to VAT. This amendment has been tabled due to the focus on encouraging measures to allow older people to remain in their homes and communities for as long as possible.

Irish VAT law must comply with requirements of EU VAT law under which such services cannot be zero rated. To allow for the VAT exemption the home care sector must become one which can be regulated by a Minister, which this amendment effectively does. This year's Finance Act will contain a provision referring to this new section on exempting private home care providers from VAT.

This amendment means private home care providers must supply certain information to the HSE on their services, namely, the name and address of the provider, the nature of the services being provided and the names and addresses of all persons to whom such services are provided. The amendment allows for a clearer picture to be built up of privately provided home care services as it also allows for the retention of such information by the HSE.

The amendment also defines "home care service", "home care provider" and "private dwelling". The definition of "home care service" is not limited to people over the age of 65. Rather, it focuses on persons who cannot provide the particular service in question for themselves because of illness, frailty or disability.

Although this Bill has a general commencement order, amendment No. 26 will give legal effect to the new section 11 immediately following its enactment. This will allow the VAT exemption for home care providers to come in to force as soon as the Finance Bill 2007 is enacted. Amendment No. 27 is a technical amendment which inserts the name of the Health Act 1970 into the title of the Bill.