The number of people in the State's psychiatric hospitals fell from 4,256 to 3,966 last year, according to the Inspector of Mental Hospitals.
There were 24,286 admissions to psychiatric hospitals in 2002, of which 2,823 were non-voluntary, the inspector's annual report for 2002 says.
The majority — 55 per cent — of those in hospital at the end of 2002 were long-stay patients who had been hospitalised for over a year and over one third of them for over five years. The majority of long-stay patients were over 65.
Dr Dermot Walsh, the Inspector of Mental Hospitals, highlights the poor state of some services for people suffering from psychiatric illnesses.
In his 374-page report, he states that units in some hospitals are in unnacceptable condition or not suitable for the purposes for which they are used.
Dr Walsh says the condition of the two acute admission wards at one county Dublin-based psychiatric hospital were "quite unacceptable for their purposes" and that they highlighted the "extreme urgency of providing a much-delayed acute unit in Beaumont Hospital".
His inspection of St Ita's hospital in Portrane also found that ECT machines were unsatisfactory, that an admission policy to the unit was "not apparent" and that admission decisions "quite often appeared to be vested in relatively inexperienced doctors".
St Ita's has been among the hospitals of which Dr Walsh has been most critical in his annual reports in recent years. However, the Northern Area Health Board, which is responsible for the running of the hospital, has begun to move patients from inappropriate units at the hospital and into community-based homes.
Many units at the 300-acre hospital complex now lie empty and Dr Walsh also questions the reason for this, suggesting that the available land could be used to fund improvements in St Ita's services.
Mr Tim O'Malley, Minister for State at the Department of Health and Children, welcomed the report and said he acknowledged the important work of the inspectorate in providing an "accurate and independent account of national services in the mental health sector".
Mr O'Malley said significant developments last year included the establishment of the Mental Health Commission, the reinforcement of certain specialties and the appointment of additional consultant psychiatrists in some areas.
"The inspector felt these posts demonstrate recognition at official level of the increasing complexity of psychiatric disorder and the growth of understanding of some of the circumstances and consequences of major mental disorder," he said.
Mr O'Malley also noted that the failure to open psychiatric units at Portlaoise General Hospital and Castlebar Regional Hospital as planned had been a "source of disappointment" to the inspector. He said both units would open very shortly.
Mr O'Malley said additional funding of €7.6 million was provided this year for improvements in mental health services.
He said the recently established Expert Group on Mental Health Policy would prepare a new national policy framework for the care and treatment of those who use the services as well as those who work in them.