Seán Power (Kildare South, Fianna Fail)

I thank the three Senators for their contributions, in which a number of issues were raised. I do not propose to accept the amendment and I will explain the reason.

The figure of €10,400 contained in Committee Stage amendment No. 14 is not a simple income threshold. An individual with the State pension as his or her only income and with no other assets would be eligible for the maximum level of subvention. Instead, this threshold should be read in conjunction with the property threshold. The increase in the basic maximum rate of subvention to €300 per week means that a person in receipt of the State pension with a house worth up to €364,000 and with no other income and assets may now just qualify for basic subvention. This constitutes a significant improvement on the past. In order not to hinder the potential for people to now qualify under this new increased rate, it was necessary to increase the property threshold and the related income threshold, to €365,000 and €10,400, respectively.

However, these are only technical amendments and will not prevent someone from receiving a subvention as the means assessment, as previously mentioned, will enable those with assets of up to €365,000 and a modest income to qualify for support. This is because it is the financial means assessment and the imputation of income from the principal private residence under that assessment that affects people's qualifying subvention and the amount they receive. The 5% imputation in the means assessment kicks in and makes all the difference.

However, it should be noted that the HSE has issued guidelines on the standardised implementation of the nursing homes subvention scheme for 2007. The guidelines clarify that the HSE will assess all applicants for subvention and will not automatically refuse an assessment on the basis of property thresholds. Although in general, applicants with properties in excess of €365,000 will not qualify for basic subvention, the 15% cap now means that after three years, the value of the property will be disregarded. In other words, if someone who has been in long-term care for more than three years now applies, no imputation will be taken in respect of the value of his or her home.