John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 234: To ask the Tánaiste and Minister for Health and Children if she will consider extending the nursing home subvention scheme to cover the full cost of care and to ensure that pensioners availing of such subvention also continue to retain at least half their pensions; the likely cost to the Exchequer of such measures; and if she will make a statement on the matter. [12147/05]

Seán Power (Kildare South, Fianna Fail)
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Responsibility for the administration of the Nursing Home (Subvention) Regulations, 1993 rests with the Health Service Executive. There are currently three rates of subvention payable under the regulations, that is, €114.30, €152.40 and €190.50, for the three levels of dependency, which are medium, high and maximum.

Under Article 10.6 of the Nursing Homes (Subvention) Regulations 1993, the executive may pay more than the maximum rate of subvention in a case, for example, where personal funds are exhausted. The application of these provisions in an individual case is a matter for the executive in the context of meeting increasing demands for subvention subject to the provisions of the Health Act 2004. Under Article 8 of the regulations, the executive in assessing the means of an applicant shall ensure that one fifth of the weekly rate of the old age non-contributory pension is disregarded for the purposes of such assessment. The average rate of subvention paid by the executive generally exceeds the current approved maximum rate of subvention.

The Mercer report on the future financing of long-term care in Ireland, which was commissioned by the Department of Social and Family Affairs, examined issues surrounding the financing of long-term care. A working group chaired by the Department of the Taoiseach and comprising senior officials from the Departments of Finance, Health and Children and Social and Family Affairs has been established following publication of the report. The objective of this group is to identify the policy options for a financially sustainable system of long-term care, taking account of the Mercer report, the views of the consultation that was undertaken on that report and the review of the nursing home subvention scheme by Professor Eamon O'Shea.

This group has been requested to report to both the Minister for Social and Family Affairs and the Tánaiste by mid-year 2005. Following this process, it is the intention that there will be discussions with relevant interest groups on the proposals for the future financing of long-term care for older people.