Seán Ardagh (Dublin South Central, Fianna Fail)
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Question 167: To ask the Tánaiste and Minister for Health and Children the steps she is taking to provide affordable residential care for older persons, particularly taking into account the aging of the population (details supplied). [14559/06]

Seán Power (Kildare South, Fianna Fail)
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The Tánaiste and I regard supporting older people to stay in their own homes and communities as a key policy priority, thereby moving away from the practice of placing people in residential care as a first option. Research has shown this is the expressed wish of the majority of our older people.

Additional funding has been allocated for services for older people and palliative care amounting to €150 million in the budget for 2006 —€110 million for 2006 and €40 million more for 2007. The investment package is a major step in focusing new resources on home care first and foremost, while still supporting appropriate residential care.

For those who do require residential care, the nursing home subvention scheme was introduced in 1993 on foot of the Health (Nursing Homes) Act 1990, and regulations made thereunder to give some financial assistance towards the cost of private nursing home care. It was never intended that the scheme would subsidise the full costs of private nursing home care.

The Nursing Home (Subvention) Regulations 1993 are administered by the Health Service Executive. There are currently three rates of subvention payable, €114.30, €152.40 and €190.50 for the three levels of dependency which are medium, high and maximum.

The HSE has discretion to 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 these provisions 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. Additional funding of €20 million was provided for the administration of the nursing home subvention scheme in 2006, bringing the total available budget to €160 million.

The Tánaiste and the Minister for Social and Family Affairs, Deputy Séamus Brennan, established a working group to identify the policy options for a financially sustainable system of long-term care. The report of that working group on the future financing of long-term care has been presented to Government and is currently being considered by Cabinet.