Seán Power (Kildare South, Fianna Fail)

Moreover, the HSE may still consider such individuals for enhanced subvention and consequently, although the figure of €10,400 could be raised, it would be futile to so do. It could also raise public expectations unfairly and arguably, it could be seen as being misleading, as people with houses valued at more than €365,000 and with income of €20,800 would not be eligible for subvention, by virtue of the means test and the income imputed from their properties.

Senators Henry and Browne both mentioned the possibility of indexation. While I appreciate their argument, it is inappropriate on this occasion. Later this year, the Government will introduce a new nursing home support scheme, namely, a fair deal on long-term nursing home care. As it will not contain any income, property or wealth thresholds, including indexation in this Bill would serve no purpose. Under the proposed new scheme, which will take effect from 1 January 2008, everyone will be eligible to apply for support.

As for the issue on social welfare raised by Senator Browne on Committee Stage and again today, the earnings disregard for non-contributory pensions is now €200 per week. This means that income from employment of €200 per week is disregarded in the means test for State pensions. The underlying reasoning is simple, namely, those who wish to continue in employment after reaching the normal retirement age should be, as far as possible, facilitated and supported. While this in no way affects the financial assessment for subvention applicants, it should be noted that this is less than the amount of income that is disregarded under the financial assessment for subvention.