John Cummins (Fine Gael) | Oireachtas source

I welcome these proposed changes to the fair deal scheme. I understand and appreciate the concerns in some quarters that these provisions encourage the movement of people into nursing homes. We need to look at them in the reverse and see the benefit of these homes, which are vacant in the case where a family member is already in a nursing home, being brought back into productive use for housing purposes.

I believe that the legislation does not go far enough with the 40% level. There is probably an acknowledgement of that within the framing of this legislation in saying that there is going to be a review after six months. I anticipate that the review will recommend further reducing the rate of 40% of assessed income because we need to incentivise people. It is a great burden on families to get a loved one's home into a particular state to be able to rent it out. I mean there are valuables in that house that have belonged to family members for generations. To clear a house when somebody is in a nursing home brings a final realisation that he or she will not be moving back into his or her home, which is a step that many families are not ready to take.Families are certainly not ready to take that step when the income is being used to pay for the fair deal scheme in the first instance. It is welcome that we are moving to a rate of 40%. We need to go further in reducing the assessed income to encourage more properties to come back into circulation for individuals and families. That is what we are all about in Government. I believe we have not gone far enough at this time but I believe we will move a little further on it by the end of the year.