I thank Senators for facilitating me in make my contribution. As I am required, by schedule, to be elsewhere, my colleague, the Minister of State, Deputy Moffatt, will listen to the remainder of the debate.
I welcome the report of the Ombudsman on the nursing home subvention scheme recently laid before the Dáil and Seanad. While it is critical of my Department, nonetheless I welcome its close examination of the scheme. I do not believe in shirking criticism, I believe in welcoming it, taking it on board and learning from it. We should apologise to those adversely affected by decisions taken regarding the operation of the scheme, decisions which, as the Ombudsman points out, disadvantaged people in their entitlement to nursing home subvention between the years 1993 and 1999.
My colleague, the Minister of State, apologised on behalf of the Executive last evening in the Dáil. However, we are only Ministers in the overall scheme of things. The scheme has been operated under more than one Administration and all political parties need to reflect on what happened in recent years. The Ombudsman points in that direction in highlighting the relationship between the Executive and the Legislature.
I was disappointed that Deputy Gay Mitchell and others, during a recent debate on Private Members' time in the other House, tended to concentrate on officials within the Department to the exclusion of all others. While those involved in the administration of the scheme have answers to give, we all have lessons to learn, irrespective of which political party to which we belong.
The Ombudsman makes an important point regarding the relationship between the Executive and the Legislature. He also raises issues about the relationship between the Department and the Minister of the day. Although Ministers presided over the scheme since 1993, the Ombudsman points out that they would not have been aware of the legal advice available suggesting that the regulations were ultra vires the Act.
The issue of whether relatives should contribute to the care of the elderly was hotly debated during that period. Parliamentary questions on the issue were tabled by many Deputies. One may get the impression from the Ombudsman's report that this is a surprise and that there was no issue about whether relatives should be means-tested or make a contribution, but Ministers are on public record as stating they believed that relatives should pay. Deputy Noonan, for example, when Minister for Health, made it clear to Deputy Harney in 1996 that he believed that sons and daughters who were in a position to contribute towards the cost of a parent's nursing home fees should do so and that the State recognised this contribution by way of tax relief. There were questions from Deputies about this aspect of the scheme in June and October that year. The Irish Nursing Homes Organisation also raised the issue successively with Ministers. There may have been an understanding in both Houses that regulations provided the basis for means-testing of relatives. Nonetheless, there were broader issues in funding the scheme etc. which needed to be honestly and openly examined.
The issue to which the Ombudsman draws attention is that there was no legal authority to means-test relatives. He makes the point that Ministers were not made aware of this. It is important, in that context, that that issue be explored further when referred to the joint committee. The Ombudsman, in his conclusions, states that this is a complex issue and that the apportioning of blame is also complex. He suggests that it be assessed in the context of the complexity of how Government is operated and, in particular, the relationship between the Legislature and the Executive.
The policy of the Government on health services for older people is as outlined in the report, The Years Ahead, first published in 1988 and reaffirmed in the review of The Years Ahead, published in 1997. The policy is to maintain older people in dignity and independence at home in accordance with their wishes, as expressed in many research studies, to restore to independence at home those older people who become ill or dependent, to encourage and support the care of older people in their community by family, neighbours and voluntary bodies, to provide a high quality of hospital and residential care for older people when they can no longer be maintained in dignity and independence at home.
It is an inescapable fact that the anticipated change in demographics in the period 1996-2011 has, and will continue to have, significant implications for all service planners, service providers and all in government, whether at local or national level. The changing health and social needs of older people present a major challenge to society. The longer older people remain in good health and disability free, the better will be their quality of life and the greater their contribution to society. Ageing is a normal dynamic process, it is not a disease. While ageing is inevitable and irreversible, the chronic disabling conditions that often accompany it can be prevented or delayed, not only by medical interventions, but by social, economic and environmental policies. These policies need to be informed by a wider, more positive view of old age.
Since taking office in 1997, the Government has allocated significant resources to services for older people, particularly health services, in an attempt to deal with this change and the resulting issues which will emerge. Additional funding for the development of health services for older people has increased significantly from £10 million in 1997 with an additional £36 million being provided in the year 2000 and an additional £57 million being provided in 2001. This has resulted in approximately 880 posts being approved for services for older people between 1997 and 2001.
Under the national development plan, £2 billion is being made available for investment in health services, that is, a trebling of investment compared to the previous seven year period. The purpose of this plan will be to create an infrastructure that will bring significant and tangible advances in delivering a more patient centred and accessible service. We are keen to have a balance between the community services side and hospitals. That is the reason we made it clear from the start that we wanted a 50-50 split between the spend on hospitals and the spend on community services, which is of particular importance to the elderly. We have made this clear to the health boards.
Over £200 million will be available for the capital development of services for older people over the period of the plan. A broad range of facilities will either be provided, replaced or upgraded as a result, including assessment and rehabilitation facilities, ambulatory care facilities, community hospitals, community nursing units, convalescent and respite beds, day care centres and services for the elderly mentally infirm.
With considerable investment in health board facilities and the area of community care, substantial additional resources have been made available for the nursing home subvention scheme. Members will be aware that the Health (Nursing Homes) Act, 1990, under which subvention regulations were made, has two principal objectives: to ensure high standards of accommodation and care in all nursing homes registered under the Act and to provide a new system of nursing home subvention in order that dependent persons most in need of nursing home care will have access to such care.
In January this year, 385 private nursing homes were registered under the Act, with approximately 6,000 in receipt of a subvention. I intend to increase the rates of subvention from their cur rent levels of £70, £95 and £120 per week, depending on the level of dependency, to £90, £120 and £150 per week with effect from 1 April. This year, the funding available for the scheme is £52 million.
The report of the Ombudsman deals with the role of the Department of Health and Children in making regulations and overseeing the introduction of the scheme and examines the administration of the scheme by the health boards since its inception in 1993. However, more importantly for us as Members of the Oireachtas, it also considers the nature of the relationship between the Houses of the Oireachtas and the Executive and within the Executive and also the relationship between the political and administrative levels. The Ombudsman states, in relation to his findings, "any attempt simply to apportion blame, without regard to the complexities of the framework within which Government in Ireland operates, runs the risk of the central message in this report being overlooked." I will return to this issue.
Two articles in the nursing home subvention regulations were the subject of critical comment: article 8.2, the "pocket money" provision, and articles 9.1 and 9.2, which allowed for the income of adult sons and-or daughters to be assessed when determining the level of subvention to be paid. My immediate priority is to ensure the two aspects of the regulations that have the most direct impact on nursing home patients and their families are fully addressed without delay. I will outline the action taken to date.
Article 8.2 of the Nursing Home Subvention Regulations, 1993, allows health boards to disregard a sum equivalent to one fifth of the old age non-contributory pension when assessing means and calculating the amount of subvention to be paid. An additional allocation of £4 million was made available in 1998 to six of the eight health boards where the regulations were applied incorrectly, to meet the costs of arrears payments in respect of the full implementation of the Health (Nursing Homes) Act, 1990, and subsequent regulations. The sum of £4 million was not provided solely for the purposes of article 8.2 arrears. Health boards were also incurring additional expenditure as a result of the easing of the family circumstances regulations in 1996. These regulations, signed in July 1996, increased the personal allowances applied by designated officers of the health board when assessing the circumstances of adult sons and daughters of an applicant for subvention. The funding was intended to address both problems and to meet funding shortfalls in the scheme generally.
Following a meeting between officials of my Department and representatives of the Office of the Ombudsman in December 1999, my Department became aware of continuing delays in paying arrears. The Department took up the matter with the relevant boards and is continuing to pursue it. I am advised that the current position is that where arrears were due to be paid, health boards have made retrospective payments in respect of persons currently resident in nursing homes. I understand some boards have also paid arrears in respect of former subvention recipients now deceased and former recipients who are no longer resident in nursing homes. My Department has instructed the relevant boards to take immediate steps to pay all outstanding arrears and the health boards have advised that, to date, approximately £900,000 has been paid out in respect of article 8.2 arrears. It is not possible at this stage to give a figure for the total cost of article 8.2 arrears payments as a number of boards have not completed the process of calculating the amounts due. My Department is, however, continuing to pursue this matter with the health boards concerned to ensure every effort will be made to pay all outstanding arrears as soon as possible.
This allocation was not intended to be used solely for the payment of article 8.2 arrears. The Department has been informed by the health boards concerned that the funding provided was used to cover arrears payments under article 8.2; additional expenditure arising as a result of the easing of the family circumstances regulations in 1996; the payment of enhanced subventions; expenditure shortfalls arising from increasing demands under the scheme; and legal and other costs associated with the administration of the scheme. I understand a proportion of the allocation was used by three of the health boards to fund other services for older people, including the provision of aids and appliances, improved home help services and the opening of a unit for the elderly mentally infirm. While this money was not expended on the subvention scheme, I am assured that it was used by the relevant health boards for the benefit of older people.
As the Ombudsman has outlined, articles 9.1 and 9.2 of the Nursing Homes (Subvention) Regulations, 1993, allowed health boards to assess the ability of the adult sons and-or daughters of older people who apply for nursing home subventions to contribute towards the cost of their parents' nursing home care. A review of the operation of the subvention scheme was conducted in 1995, following which an amendment was made to the schedule which provided that, in calculating the income of sons and daughters, health boards were to disregard income tax, rent, mortgage repayments, etc. This schedule increased the personal allowances applied by designated officers of the health board when assessing the circumstances of adult sons and daughters of an applicant for subvention. The subvention regulations were further amended from 1 January 1999 and the provision to assess the capacity of adult sons and-or daughters to contribute towards the cost of nursing home care of their parent was deleted.
This amendment was made because the provisions in question were not consistent with the assessment procedures adopted in the granting of medical cards by health boards or in the social assistant payment schemes administered by the Department of Social, Community and Family Affairs, wherein there is no consideration of the financial circumstances of adult sons and-or daughters of applicants. Nonetheless, I am concerned that the issue of making payments to those adversely affected by this regulation remains. While the legal advice received is that there is no legal liability on the State to make retrospective payments, there is a moral obligation on the State to do so. I have decided that moneys should be paid to those adversely affected by this provision and my colleagues in Government agree. We have secured the funding required to make these payments as quickly as we can. We have established a group representing the Department and the health boards as well as the Eastern Regional Health Authority to ensure this process is initiated on a uniform basis as speedily as possible. I alert the House to the fact that this will take time. As there were over 35,000 applications for subvention since the introduction of the scheme, this will be a complex exercise going back through all applications involving difficult issues of traceability and it may take some time to complete. Payments will not start flowing until later in the year.
An issue raised here in the recent past is that of inspection procedures for extended care facilities. The Health (Nursing Homes) Act, 1990, requires nursing homes to be registered with their local health board and regulations made under the Act require that there must be proper standards in private nursing homes, including adequate and suitable accommodation, staffing, kitchen and sanitary facilities, access to medical care and so forth. Nursing homes are required to renew their registration every three years and a health board may impose conditions in relation to registration. I have been concerned for some time about the fact that while there is provision under the nursing home legislation for monitoring standards in private nursing homes involving inspections, no similar arrangements are in place for health board facilities. I intend to rectify this. The social services inspectorate has the authority to monitor standards in children's residential centres and is operating effectively. I intend to expand the role of the inspectorate to cover extended care facilities for older people. Given the heavy demands on the inspectorate in relation to the monitoring of standards in the child care area, additional resources will be required to enable it to take on this additional function. I intend to bring proposals to this effect to Government as soon as possible.
The Minister of State with responsibility for the elderly, Deputy Moffatt, is preparing guidance and training materials in relation to elder abuse, including abuse in institutional settings. Following the publication of the report, Abuse, Neglect and Mistreatment of Older People: an Exploratory Study, by the National Council on Ageing and Older People, the Minister of State established a broad-based working group in 1999 to advise on the formulation of procedures and guidelines on elder abuse. This process will culminate in the presentation of a final report to the Minister of State who has been provided with significant resources to ensure work in this area is completed within the timeframe envisaged. The report will be completed following the testing of draft policies, procedures and guidelines in pilot projects and training programmes will be provided for staff members and ongoing evaluation will take place.
An expenditure review of the nursing home subvention scheme is being undertaken by my Department in association with the Department of Finance and is expected to be completed shortly. I intend to bring forward proposals to Government in relation to whatever additional measures will be necessary, arising from both the Ombudsman's report and the expenditure review, with experience gained from the operation of the scheme since its inception in 1993. The expenditure review, in particular, may throw up a number of issues to be considered and will, in all likelihood, have a significant impact on what happens in the future.
Chapter 8 of the report draws some far-reaching conclusions as to how Government operates under the Constitution. The report goes on to make a number of suggestions as to how the position might be improved: through better use of the Oireachtas committee system, a mechanism for monitoring secondary legislation by affirmative resolutions of the Oireachtas and a more effective system for dealing with the annual Estimates, particularly for expenditure required to meet entitlements under the State schemes introduced by the Oireachtas. These issues are broader constitutional issues, not just matters for consideration by my Department, nor are they issues that can be addressed by the Government alone. They have implications for all future Governments and will affect the way we as Members of the Oireachtas deal with matters in the future.
The report raises significant issues not just for me as Minister for Health and Children or other members of the Government. It raises issues not only about how we deal with funding entitlements, but also about people's human rights, which is of concern to us all.
The Ombudsman's report highlights examples of inequity of treatment by health boards for subvention applicants. Any inequity of treatment concerns me greatly and it is my intention to put in place fair and proper systems to ensure that this accusation cannot be levelled again.
The report makes uncomfortable reading for us all. I look forward to further discussion on it and to examination of its contents. In this regard the Dáil this morning agreed, and it is our intention, to refer this report to the Joint Committee on Health and Children. We hope it will consider this matter in depth and report back to the Oireachtas within a suggested timeframe of six months.