Thomas Pringle (Donegal South West, Independent)
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Question 398: To ask the Minister for Health and Children his plans to amend the fair deal plan to end the anomaly where farms are fully assessed for the levy on the residence of nursing home residents to pay for their care; and if he will make a statement on the matter. [10691/11]

Kathleen Lynch (Cork North Central, Labour)
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Under the Nursing Homes Support Scheme, individuals contribute up to 80% of their assessable income and a maximum of 5% of the value of any assets per annum towards their cost of care. The first €36,000 of an individual's assets, or €72,000 in the case of a couple, is not counted at all in the financial assessment. The scheme includes a safeguard that nobody will pay more than the actual cost of care.

An individual's principal residence is only included in the financial assessment for the first three years of their time in care. This is known as the 15% or 'three year' cap. It means that individuals pay a 5% contribution based on their principal residence for a maximum of three years regardless of the time they spend in nursing home care. After 3 years, even if an individual is still in long-term nursing home care, they will not pay any further contribution based on the principal residence. This 'three year' cap applies regardless of whether an individual chooses to opt for the loan or not. The intention of this three year cap is to protect the family home.

The 'three year' cap also extends to farms and businesses in circumstances where:

i. the person has suffered a sudden illness or disability which causes them to need long-term nursing home care, and

ii. the person or their partner was actively engaged in the daily management of the farm or business up until the time of the sudden illness or disability,

and

iii. a family successor certifies that he or she will continue the management of the farm or business.

In the case of couples, the measure applies where the applicant suffered a sudden and unforeseen illness and either or both members of the couple have been engaged in the running of the family farm or business. This stipulation is in keeping with the key principle of joint assessment of couples.

The 'three year cap' was extended to farms and businesses at Report Stage in the Dáil because a number of Deputies and farming interest groups, expressed concern, at both Second and Committee Stages, about the treatment of farms under the legislation. In particular, there was concern about the potential impact of the 5% annual contribution on the sustainability of family farms and businesses, specifically, in situations where care is required from an early age and for a prolonged period.

This measure is intended to ensure the financial sustainability of farms and businesses in cases where a person suffered a sudden illness and did not have an opportunity to put appropriate succession arrangements in place. It affords additional protection because it ensures that a person's maximum contribution is fully quantifiable.

If a farm or business has been transferred more than five years prior to an individual's application for the Nursing Homes Support Scheme, the asset will not be taken into account at all in the course of the financial assessment.

The Minister for Health does not propose to amend the legislation underpinning the scheme to make the treatment of farms and businesses any more beneficial than at present. Individuals in possession of such assets may already avail of the three year cap. In contrast, the 5% contribution based on assets other than the principal residence or farms and businesses that meet the criteria outlined above is ongoing for the duration of the individual's time in long-term nursing home care.