Jim Daly (Cork South West, Fine Gael) | Oireachtas source

I thank the Senator for his continued interest, assistance and guidance. I look forward to working closely with him on the matter, one of many in the health area in which he has a particular expertise and interest. As I come to terms with getting on top of my brief, I look forward to working with the Senator more closely.

The nursing homes support scheme, NHSS, provides financial support towards the cost of long-term residential care services in nursing homes and ensures that long-term nursing home care is accessible to everyone assessed as needing it. Participants contribute to the cost of their care according to their means, while the State pays the balance of the cost. The scheme aims to ensure that long-term nursing home care is accessible and affordable for everyone and that people are cared for in the most appropriate settings.

Under the scheme, an applicant will contribute up to 80% of their assessable income and a maximum of 7.5% of the value of any assets per annum. The State will then pay the balance of the cost of care. It is Government policy, as the Senator is aware, to encourage orderly succession arrangements for farms, and this is also endorsed by farming organisations. The Revenue Commissioners have a number of schemes in place designed to protect the value of a transferred family farm, such as tax relief schemes relating to capital gains tax, capital acquisitions tax and stamp duty. In most cases, early succession arrangements in families should ensure that farm assets are transferred well in advance of five years before nursing home care is required, meaning that a levy on the farm asset is avoided entirely.

It is important to note that an applicant’s principal private residence will only be included in the financial assessment for the first three years of their time in care. This is known as the three-year cap. The scheme ensures that nobody will pay more than the actual cost of care and contains a number of important safeguards. For example, where an applicant’s assets include land and property held in the State, the contribution based on such assets may be deferred and collected from the estate. This is the optional loan element of the scheme. It is important to note that the scheme already contains provisions for the treatment of income generating assets such as farms. In an acknowledgment that unexpected health events can occur that prevent early succession arrangements, a farm or relevant business can also qualify for the three-year cap. This applies where the person has suffered a sudden illness or disability that causes them to need long-term nursing home care; the person or partner was actively engaged in the daily management of the farm 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.

When the scheme commenced in 2009, a commitment was made that the scheme would be reviewed. The report of the review was published in July 2015. Arising out of that review, a number of key issues have been identified for more detailed consideration across Departments and agencies, including the treatment of business and farm assets for the purposes of the financial assessment element of the scheme. In a further acknowledgement of the importance of this issue, we have committed in the Programme for a Partnership Government to reviewing the scheme to remove any discrimination against small business and family farms. An interdepartmental and agency working group has been established to progress many of the recommendations contained in the review of the scheme, including the examination of the treatment of family farm and business assets. This examination is ongoing and at an advanced stage.It is important to remember the NHSS is largely underpinned by primary legislation and any changes to the scheme will require legislative implementation. A commitment has been made to prioritise and fast-track the examination of the treatment of family farms and business and the Department of Health will bring forward changes to the legislation to deal with the uncertainty that is being felt by many farming and business families in line with A Programme for a Partnership Government commitments.