Richard Bruton (Dublin North Central, Fine Gael)
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Question 177: To ask the Tánaiste and Minister for Health and Children if her attention has been drawn to the fact that if a person's income exceeds the non-contributory old age pension by a margin of 20% plus the current maximum subvention level of €190, he or she is deemed too wealthy to qualify for even €1 of support towards the cost of private nursing home care and cannot apply for the hardship provision under which enhanced subvention can be paid; and the way in which this income ceiling compares to the current estimate of the average cost of private nursing home care. [19042/05]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 178: To ask the Tánaiste and Minister for Health and Children when the three different levels of maximum nursing home subvention were first set; her estimate of the inflation in the cost of private nursing home care in the intervening period; and the present value of these subvention levels had they been indexed in line with rising costs. [19043/05]

Seán Power (Kildare South, Fianna Fail)
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I propose to take Questions Nos. 177 and 178 together.

The Nursing Home (Subvention) Regulations came into effect in 1993, at which time the rates of subvention were £70, £95 and £120 per week for medium, high and maximum dependency, respectively. The current three rates of subvention payable are €114.30, €152.40 and €190.50, which came into effect in April 2001. It should be noted that the nursing home subvention scheme was introduced to financially assist those in private nursing home care and was never intended to cover the entire cost.

The HSE may pay more than the maximum rate of subvention relative to an individual's level of dependency in a case, for example, where personal funds are exhausted. The application of the scheme in an individual case is a matter for the HSE in the context of meeting increasing demands for subvention, subject to the provisions of the Health Act 2004. The average rate of subvention paid by the HSE generally exceeds the current approved basic rates.

The Government is conscious of the changing demographic profile of our population, with more people living longer lives and the consequential greater demand for services, both community based and residential. 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. Following on the publication of this report, 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.

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 Tánaiste and Minister for Social and Family Affairs by mid-2005.