I welcome the Minister of State, Deputy Jimmy Deenihan, to the House.
Commencement Matters
Nursing Homes Support Scheme
I welcome the Minister of State. My question concerns the public perception of the fair deal scheme, which was set up in 2009. The structure was that people would pay 80% of their pension or income and 5% of their assets for a maximum of three years. That was subsequently raised to 7.5% of assets. The scheme has been operating for over seven years and this year will cost around €970 million. I welcome the allocation in the past two or three weeks of an additional €42 million. We intend to publish a paper on the review of the scheme but the perception is that the State is taking back quite a lot of funds from estates and it is important that the correct figures are available.
I also have a concern, which is not directly in the Minister of State's remit, that there is a perception that the three-year cut-off point does not apply to people from the business and farming communities who end up in a nursing home under the fair deal scheme. One family I know is paying over €2,500 a month for the support of the mother in a nursing home and there is no end to that because of the valuation of her assets. My understanding is that she has MS, an illness that will not change and will probably deteriorate in the coming years. While there are some issues concerning the fair deal scheme, it is important that the public has the correct information.
I thank Senator Burke for raising this matter.
The nursing homes support scheme is a generous scheme which relieves families of potentially very onerous expense and even protects the greater part of the value of a participant's main residence. However, it is also expensive. The amount allocated to the scheme in 2015 is €993 million, which is an increase of €44 million on 2014.
Under the scheme, nursing home residents contribute towards the cost of their nursing home care based on their means and the HSE pays the balance. Where an applicant's assets include land and property in the State, the 7.5% contribution based on such assets may be deferred. This is an optional loan element of the scheme which can assist an applicant with the cost of their care. The purpose underpinning the loan is to ensure than an applicant does not have to sell their house during their lifetime. The loan can be repaid at any time but will ultimately fall due for repayment upon the applicant's death.
Under the Nursing Homes Support Scheme Act, the Revenue Commissioners are the appointed agents of the State for the collection of repayable moneys under the loan element of the scheme. Such moneys received by the Revenue must be paid into the Exchequer Central Fund. Since the scheme commenced in 2009, the HSE has notified the Revenue Commissioners of a total of 2,270 loans for repayment. The value of these loans amounts to €40.1 million and, as of the end of April 2015, a total of €23.8 million has been repaid.
The following arrangements apply to the collection of these amounts by the Revenue Commissioners. In the event of a death, the accountable person has 12 months to repay the loan after the date of death. Where the nursing home loan is repayable because of the sale or transfer of property, the person must repay the nursing home within six months of the date of the sale or transfer. Under the legislation, the repayment of the nursing home loan may be further deferred where certain conditions are met, for example, where the property is the principal residence of the surviving partner of the person who has died. The Senator will be aware that the nursing homes support scheme is currently the subject of a review.
I thank the Minister for the information. Given that during the past four years we have paid approximately €3.8 billion in the fair deal scheme and that we are now discussing a refund of €23 million, it is less than 0.5% of the overall expenditure. Regarding the 80% of people's pension that is being collected, we have never received any information from the HSE about what it amounts to. The Minister of State corrected me and stated that €993 million has been allocated to the scheme for this year. The 80% levy on people's pensions probably adds up to another €200 million on top of this. However, we have never seen exact figures for the contribution. To be fair to the taxpayer and everyone involved in the scheme, it is important that all the correct figures are made public. I ask that this information be published at the same time as any review of the fair deal scheme is published.
If the Senator will put those questions on paper, I will get the responses. If he wants this level of detail, I will ask the Minister for Health, Deputy Varadkar, to provide the statistics.
Health Insurance
I thank the Cathaoirleach for the opportunity to seek an update from the Minister for Health, Deputy Varadkar. Presumably, the Minister of State, Deputy Deenihan, will speak on his behalf on the response to or take-up in respect of the Government's recent decision to levy people aged over 35 who take up health insurance for the first time after 30 April 2015. I have mixed feelings about the scheme. While I appreciate that we must do everything possible to encourage people to enter the private health insurance market as part of the long-term move towards some type of universal health insurance, I have a difficulty with the concept of compulsory insurance being almost imposed on people. This is as close to compulsory as we can get.
I would be interested to know what the public response has been. The deadline is tonight. It would be helpful, even at this late stage, if the Minister would extend the deadline. There has been much public advertising, and we have been advised that there has been a significant public response, although it may not have been the response which was expected. During the past week, I have listened to many health insurance commentators speaking on the radio and, on the whole, they are in favour of the proposal. Many families are still under major financial stress and strain and it is difficult to encourage people who, for various reasons, have not taken out health insurance, to do so. It might be helpful to have flexibility on the closing date for the new terms and conditions.
While we are discussing the broad issue of private health insurance, it is fair to say that there is a level of disappointment at the abandonment of the Government's universal health insurance proposal. While it was always, perhaps, aspirational and it was a high bar to jump, it appears it is dead in the water. We must return to the drawing board regarding health insurance, given that the universal health insurance scheme figures do not seem to add up. Medical costs are still the most significant issue regarding health insurance and the health service in general. Medical costs are not being challenged and tacked sufficiently. As costs continue to escalate, it does not take a rocket scientist to confirm that health insurance costs will also rise. This has been a primary difficulty in the market during recent years. Issues such as insurance claims and medical insurance costs are part of the mix. The Minister, Deputy Varadkar is still relatively new to the job and is, presumably, working day and night to get a hold on it. However, the Department of Health and its problems have been with us for so long that we sometimes despair that change and progress is so slow.
Could the Minister of State confirm the level of take-up and what it means? What about the people who cannot afford to take out even the most basic policies on offer? It is pertinent to advise people that some of these very basic packages are health insurance in name only and offer very few benefits. While I understand why the Government felt community rating had to be defended in this fashion, there are other issues from the point of view of competition in the market and, above all, the costs of medical care, medical provision, medical insurance and medical claims, and these must be part of the solution. I look forward to the Minister of State's update on the take-up of health insurance under the scheme.
I am taking this debate on behalf of the Minister for Health, Deputy Varadkar, who is on Government business elsewhere and regrets that he cannot be here. I thank the Senator for raising the issue as it gives me an opportunity to update the House on this important matter. Community rating, reflecting the principle of intergenerational solidarity, is a fundamental cornerstone of the health insurance system. This means people who are old or sick do not have to pay more than the young and well. Under community rating, the level of risk that a particular consumer poses to an insurer does not directly affect the premium payable. For community rating to work, we depend on a constant influx of younger, healthy people taking out health insurance to help keep premium prices down for everyone. This is why lifetime community rating is being introduced, to encourage people to take out health insurance at a younger age, thereby helping to spread the costs of older and less healthy people across society. This helps to support affordable community-rated premiums for everyone who wishes to purchase health insurance.
From tomorrow, there will be late entry loadings for those aged 35 and over taking out health insurance for the first time. The loadings are set at 2% per year starting at age 35, up to a maximum loading of 70% at age 69 and over. Crucially, people of all ages can avoid loadings by taking out health insurance before the end of the grace period at midnight tonight. Since the start of March, the Health Insurance Authority has been running a public information and awareness campaign around lifetime community rating to publicise this significant change. The campaign includes a nationwide advertising campaign in the run-up to the 30 April deadline, running across various separate media platforms including television, radio, print and the Internet, to reach as many people as possible and to inform the public of the impending change. In addition, the insurers have been running their own individual media campaigns to inform the public and have developed web-based information tools to provide any additional information required.
Following the expiry of the grace period, there are exemptions available to help limit the level of loadings that can apply.
Previous periods of health insurance cover are taken into account in calculating the loading that may apply. In addition, a credited period, in total not exceeding three years, is also available for individuals who previously had health insurance but relinquished cover since 1 January 2008 due to unemployment. In such cases, the level of loading will be reduced by the relevant credited period or periods.
The Health Insurance Authority will have updated market figures for the April to June period available at the end of July. However, insurers have confirmed high levels of Internet traffic and telephone contact from people as the grace period draws to a close, and the insurance companies are confident that they are fully ready to deal with any last-minute upsurge, with telephone lines open late all this week. Any increase in the number of younger insured persons will have a positive impact on the market as a whole. In addition, the measure will also encourage people to retain health insurance once they have it, which in turn will help to keep premium prices down for everyone.
I will take a brief question from the Senator.
To repeat the point I made earlier, even at this late stage the Minister should consider an extension of the deadline. It is something we see across many Departments in respect of many schemes that the deadline is extended at the last minute. I would not expect to hear from the Minister at this hour of the last day. If we are genuinely attempting to encourage as many people as possible to take out health insurance, and if by extending the deadline by a week or a fortnight, another 2,000, 3,000, 5,000 or 10,000 people would do so, that would be a help. I ask the Minister of State to impress on the Minister the need to consider an extension of the deadline because, notwithstanding the telephone calls and the Internet traffic, early indications appear to be that the take-up is not as significant as had been expected. That could be wrong and, as the Minister of State has said, the figures will not be available until the end of July, but there is no harm in considering a short extension of the deadline. The Minister of State does not have to respond but I simply ask him to convey my strong request in that regard to the Minister for Health, Deputy Leo Varadkar.
I will certainly convey the Senator's request to the Minister. I wish to draw to the Senator's attention a press statement the Minister issued on Tuesday last, in which he confirmed there will be no extension of the deadline. It is important that we all appeal to people to be mindful of the deadline. As we know and appreciate, the more young people who take out insurance, the less of a liability there will be on the older generation. In time everyone will experience that stage of life and will depend on younger people to help them. It is very important that people abide by the deadline to take out insurance before it expires.
Garda Deployment
Will the Minister for Justice and Equality clarify the position on staffing levels and operational procedures in Blackrock Garda station, Blackrock, County Louth, in view of community concerns about a possible reduction in staff numbers? In 2012, a Garda sergeant and four gardaí were stationed at Blackrock Garda station. The number had been augmented some years earlier due to the rapidly increasing population of the area, but in recent times those numbers have been reduced and at present there is one Garda sergeant and one garda in the station. I realise that one garda in the station was badly injured in the course of duty but is recovering well. He is an excellent member of the Garda Síochána. Another garda in the station has been reassigned to the Adrian Donohoe case, which is very important work. We all hope the perpetrators of that dastardly murder will be brought to justice. Wherever they are hiding at the moment, there is no hiding place for them.
Blackrock is a growing area. Due to the hard work of the local tidy towns committee and the traders, it has again become a great tourist attraction for the people of Louth, Monaghan and Cavan. It is an area that has always been visited by Cavan and Monaghan people. The poet, Patrick Kavanagh, wrote about going to Blackrock for the day. The tourist aspect of Blackrock died down over a number of years as it became a residential area. Today, like Carlingford, which due to the efforts of people such as Senator Terry Brennan has become one of the best tourist attractions not only in Louth but in Ireland, Blackrock is becoming a very attractive location for people to visit. It attracts its share of people who can play on that. There has been a large increase in burglaries not only in Blackrock but in the Louth area due to its accessibility to tourist criminals. Notwithstanding the great work done by the Minister for Justice and Equality in increasing Garda numbers nationally and in Louth, we need at least one extra garda, or perhaps two on a permanent basis, when the injured garda recovers, to deal with the crime levels in the area.
The Minister wishes to thank the Senator for raising this important matter. The House will be aware that the Garda Commissioner is responsible for the detailed allocation of resources, including personnel, transport and other facilities throughout the organisation and the Minister has no function in the matter. This allocation of resources is constantly monitored by the Commissioner and her senior management in the context of demographics, crime trends, policing needs and other operational strategies in place on a district, divisional and regional level to ensure optimum use is made of Garda resources.
Specifically in relation to the Louth division, the Minister has been informed by the Commissioner's office that 279 gardaí are assigned to the division, of which four are assigned to Blackrock Garda station. There are also 46 reserve gardaí and 22 civilians attached to the division. When members attached to Blackrock Garda station are not on duty, telephone calls are transferred to Dundalk Garda station.
Last September the Government oversaw the first recruitment of new gardaí since 2009. The Garda College was reopened for new recruitments and the Government is committed to not letting it close again. To date, 300 new recruits have entered the Garda College, and the first of these joined the force as sworn members last week. The Minister also recently received sanction from the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, for the recruitment of a further 250 new gardaí in the coming months. The additional recruitment will bring to 550 the total number of gardaí who will have been recruited by the Government between September 2014 and October 2015. This signifies the determination of this Government to deliver an effective, responsive police service to protect our communities and respond to emerging crime trends.
The allocation of resources within the Louth division continues to be closely monitored by Garda management to ensure that, within existing constraints, optimum use is made of resources to provide the best possible Garda service to the public and to address the policing needs of communities. Garda management is satisfied that a full and comprehensive policing service is being delivered to the communities in the area concerned and that current structures in place meet the requirements of the delivery of an effective and efficient policing service. The Garda Commissioner will, of course, continue to keep the needs of the Louth Garda division under review within the overall context of the needs of Garda divisions throughout the country.
The Minister is determined that the resources of An Garda Síochána will be used in the best, most effective and efficient way possible.
The Minister is confident that the primary Garda objective of combating crime will continue to be achieved and that despite pressure on the public finances it will be possible for the force to operate to the optimum benefit of our communities in a manner that will facilitate the prevention and detection of offences.
I thank the Minister of State for his reply. I would like to put on record that the people of Louth appreciate the great work being done by An Garda Síochána.
Traditionally, special resources were provided to deal with extraordinary actions in Border areas. While I acknowledge that the allocation of resources is a matter for the Garda Commissioner, it would appear that Louth is under-resourced in terms of population and crime levels. Louth is in the Border area. A couple of weeks ago the British-Irish Council special reporting committee called for the establishment of a special task force to combat crime, such as diesel laundering, in the area. Will the Minister ask the Garda Commissioner to re-examine the possible recalibration of resources to take account of the extraordinary factors in Border areas?
Again, I thank the Senator for raising this issue. As I alluded to earlier, with the recommencement of Garda recruitment, the allocation of gardaí on completion of training at the Garda College to the Louth division will be kept under review and fully considered by the Garda Commissioner in the context of the overall requirements of An Garda Síochána nationally. On behalf of the Minister and the Government I acknowledge the work An Garda Síochána does in maintaining the security of the State and in keeping communities throughout the country safe and state that this Government will continue to support An Garda Síochána in its work. I have taken on board the issues raised by the Senator and will communicate them to the Minister for Justice and Equality.
Housing Adaptation Grant Funding
I, too, welcome the Minister of State, Deputy Deenihan, to the House. It is great to see him. A number of councillors throughout the country have raised with me their concerns regarding housing adaptation grants scheme funding for the elderly and people with a disability, which has been very successful in providing elderly and disabled people with a degree of comfort by facilitating them to continue living in their own homes for longer periods, which is to be welcomed. People coming towards the end of their lives deserve to be able to live in dignity. These schemes have facilitated many thousands of elderly people to do necessary remedial works to their homes, including installation of accessible bathrooms, new windows, doors and roofs, and insulation.
The problem is that the local authorities have not as yet been notified of their contribution towards these schemes for 2015. The allocation for this scheme should be increased as it would have the double effect of facilitating address of the issues outlined on behalf of our older citizens and provide employment for small construction companies employing two or three people as opposed to larger construction operators. Smaller construction companies are better able to provide this service and the quotations and so on required under these schemes.
I cannot for the life of me understand why the local authorities have not yet been told their contribution for 2015. My understanding is that in 2014 and previous years they were made aware of their allocations under this scheme in January. When will the local authorities receive a circular outlining their contribution for this year and can we expect that the amount provided for each local authority will be an increase on that provided in 2014?
I thank Senator Conway for raising this important matter. The Department of the Environment, Community and Local Government provides funding to local authorities for the housing adaptation grant scheme for older people and people with a disability. Under this scheme, a suite of grants is available to private home owners. The scheme is of significant social benefit in terms of facilitating the continued independent occupancy by older people and people with a disability of their homes. The grants are 80% funded by the Department of the Environment, Community and Local Government, with a 20% contribution from the resources of each local authority. Exchequer funding of more than €37 million was provided for these grants in 2014. This amount, combined with the contributions from the local authorities, amounted to overall spend of €46.3 million. National funding for 2015 is to increase by 10%, giving a combined spend of €50.5 million. Individual allocations to local authorities will be made shortly. Some 8,000 households are expected to benefit under the schemes in 2015. The Minister is aware that the grant measures are heavily subscribed across local authority areas and the Department of the Environment, Community and Local Government will be requesting local authorities, where necessary, to prioritise those applications based on need.
At local level, the detailed administration of these schemes, including assessment, approval and payment of individual grants to applicants, is the responsibility of the relevant local authority. Funding is also available to support local authorities in undertaking adaptations and extensions to their own social housing stock to meet the needs of their tenants with a disability or to address serious overcrowding. Support from the Department of the Environment, Community and Local Government meets 90% of costs, with local authorities providing the remaining 10%. Again, the implementation of works under these supports for local authority tenants is a matter for the authorities. It is for them to determine in the first instance if the works are needed to make the accommodation more suitable for the tenant and to prioritise the use of available resources.
In recent years, despite significant funding reductions for social housing overall, a concerted effort has been made to protect expenditure in respect of extensions and adaptations to local authority homes. In 2014, funding nationally in this area was €8 million. I know that the Minister, Deputy Kelly, hopes to ensure that 2015 funding for these supports to local authorities is at least maintained at the same level as last year.
I thank the Minister of State for his comprehensive response. In regard to the statement in his response that allocations will be made available to the local authorities shortly, will the Minister of State be a little bit more specific and, perhaps, provide us with a date in that regard? Councillors and officials are crying out for a date to enable them to proceed to the next stage and make grants available.
On leaving the House, I will contact the Minister's office and request that information for the Senator.
Sitting suspended at 11.10 a.m. and resumed at 11.30 a.m.