Dáil Éireann Debate, Thursday - 11 March 2021
233. Deputy Claire Kerrane asked the Minister for Health the status of the review into the fair deal scheme; if his attention has been drawn to issues for farm families in cases in which land not transferred five years previous to an application is treated as income; if his attention has been further drawn to the difficulties this causes for families; if the five year rule will be reviewed; and if he will make a statement on the matter. [13733/21]
Amharc ar fhreagraThe Nursing Homes Support Scheme, commonly referred to as the Fair Deal Scheme, has been in operation for over 10 years and there is broad agreement that the Scheme operates well and continues to provide appropriate financial assistance where it is required.
However, it is recognised that the Act, in its current form, does not place caps on the financial assessment of family owned and operated farms or businesses when calculating the means to pay for nursing home care. This places a potentially onerous burden on family successors and could challenge the future viability of these productive assets should the relevant person remain in care for an extended period of many years.
Therefore, the Department of Health has proposed a policy change to the Scheme, to cap contributions based on farm and business assets at three years where a family successor commits to working the productive asset. The stated policy objective of the legislation is to introduce additional safeguards in the Scheme to further protect the viability and sustainability of family farms and businesses that will be passed down to the next generation of the family to continue to work them as productive assets to provide for their livelihood.
This change was approved by Government and underwent pre-legislative scrutiny in the last Dáil. Progress on the development of the Bill was negatively impacted by the dissolution of the last Dáil and by the COVID-19 pandemic. The response to the pandemic has been and continues to be a national and public health priority. However, work on this legislation has continued to progress. I have met with the Attorney General to discuss this legislation, and there has been an ongoing and active engagement between my officials and the Office of the Attorney General on the development of the legislation, which will be brought to the Houses of the Oireachtas at the earliest possible opportunity. The Bill is on the priority list for the Spring legislative programme.
While developing the legislation, the Department of Health has considered that assets which have not been transferred more than five years before the owner requires nursing home care remain part of the financial assessment of means. The five-year period in respect of transferred assets has been a constant feature of the Scheme, to act as a means of protecting the Scheme, which is based on the means of those availing of it. The policy intent of the proposed Amendment is to facilitate the continued viability of family owned and operated farms and businesses by providing a degree of certainty on the cost of long term care by applying a cap on the contribution made against such an asset after three years in care. While it is not intended that the five year period in respect of transferred assets will be amended, it is intended that the 3-year cap would apply in such cases should a family successor be nominated by the relevant person.
