Martin first informed of care issue 'in November'

The Minister for Enterprise, Trade and Employment, Mr Martin, said today he only became aware last month that publicly-funded residential care patients were having pensions or other allowances deducted to help to pay for their care.

It emerged yesterday that all full-time patients of public nursing homes, mental hospitals and residential units for people with disabilities will be entitled to a once-off ex-gratia payment of up to €2,000 after the system used to take their contributions was deemed "legally unsound".

Mr Martin was minister for health from January 2000 until last September's reshuffle.

Speaking today Mr Martin said: "Basically the Attorney General's advice of November was the first I knew of the charging of patients in long-stay public institutions was illegal and didn't have a solid legal basis."

"It is only this week that I became aware that as far back as 1976 there was a major Supreme Court case on this issue...which basically established people who were in an institution, but who were getting more than just bed and board and who were getting some nursing or paramedic attention were judged to be inpatients and therefore should not have been charged," Mr Martin told RTÉ news.

The repayments will form part of a €40 million Government package which will apply to residents of all ages and also former patients who are no longer in the full-time care of the State.

All those entitled to the payment have to apply directly to the interim Health Service Executive, which will advertise the start of the scheme early next year.

While the practice of taking contributions from pensions and other allowances was suspended last week, the scheme will restart once the Government rushes legislation through the Dáil tomorrow.