Finian McGrath (Dublin North Central, Independent)
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Question 206: To ask the Minister for Finance the reason the tax system favours caring for the elderly in nursing homes and penalises home care of the elderly due to the fact that there is tax relief on carers' fees, agency fees, day-care fees, transport costs and no exception on VAT service charges on agency fees; and if he will investigate these matters. [16864/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The assertion made by the Deputy is wrong. As indicated in my reply to previous questions from the Deputy on 25 April 2006, tax relief is available in respect of home care of the elderly in the form of the employment of a carer tax allowance as well as under health expenses relief in the circumstances previously outlined.

The Deputy will, of course, be aware that there is also significant direct expenditure, primarily channelled through the health and social welfare systems, to support care of the elderly both in residential and community settings. Most recently, Budget 2006 provided funding for an additional package of measures at the level of €150 million in a full year. This additional funding includes provision for new home care packages, increased home help provision, more day care support and additional palliative care.

There is also substantial tax relief for all aged 65 and over via exemptions from income tax on income up to €17,000 per year single and €34,000 per year married and via the age tax credit which I have increased substantially since I became Minister.