Denis Naughten
Question:15 Mr. Naughten asked the Minister for Social and Family Affairs her plans to amend the non-contributory old age pension income calculation for land owners; and if she will make a statement on the matter. [4876/03]
Written Answers - Pension Provisions.
I understand the Deputy is referring in particular to the current arrangements applying in the case of old age pension where a landholder leases land or is otherwise in possession of land which is lying fallow or idle.
Where land is let on short-term lettings such as the 11 month system, the income from such lettings is calculated as cash income for the purpose of the means assessment for old age pension. Necessary expenses incurred by the owner, such as auctioneer fees, fencing or fertilising between lettings is deducted from the gross letting income.
Where land is lying fallow or idle, there are two options for the assessment of means. If the social welfare inspector is satisfied that the pension claimant is depriving himself or herself of an income in order to qualify for a pension or a pension at a higher rate than would otherwise be the case, the assessment would be the income which would be received if the land was let; where the inspector is satisfied that this is not applicable, the value of the land is obtained from the Valuation Office and is assessed as capital for means purposes. Any such change could only be considered in a budgetary context.