Ahern defends plan for nursing home care

Taoiseach Bertie Ahern defended the Government's proposed new scheme for the funding of nursing home care in the face of strong criticism.

Mr Ahern said everyone knew that the cost of care of the elderly had increased dramatically and would continue to do so. "However, the individual contribution will be based on income and assets."

The proposal, which comes into effect in January 2008, will allow the State to collect a maximum of 15 per cent of the value of an older person's home after their death.

Fine Gael leader Enda Kenny claimed that, on Monday when the announcement was made, they had witnessed "the introduction of a new death tax on the elderly".

It appeared that the Government intended to wash its hands entirely of future care of the elderly, those who built up the State, worked in far more difficult times than now, paid their taxes and PRSI but now found they would be subject to a death tax after they had gone. In some cases, the family home would have to be sold.

"The Government seems completely unaware of what is happening in respect of the provision of community services. It is some years since those in psychiatric institutions were abandoned in communities with no facilities to support them, but I see something similar happening now.

"Is the Taoiseach not aware that, in respect of the provision of community services for elderly people, we do not have sufficient general practitioners, nurses, occupational therapists, physiotherapists or home helps?

"To expect those services to be in place by January 1st, 2008, is complete and utter fantasy."

Mr Ahern said providing safe and decent residential care for older people was one of the Government's long-term challenges.

The Government wanted to ensure that those who must go into residential care had the assurance of a quality place in a nursing home, where there was now a new and fair deal on how everybody paid.

"Long-term issues facing us, such as care for the elderly and pensions, are very important. As Deputy Kenny knows, the system that has been in place for the past decade-and-a-half for supporting nursing home residents is deeply unfair."

Mr Ahern said, unlike the current system, care would be affordable for all, and no one would be asked to sell or mortgage his or her home to pay for care.

A major change was that in the future a person would make his or her contribution and the State would meet the balance of the costs and take on the risk of price increases. "The scheme will be transparent with the same standardised needs assessment for everyone."

Mr Kenny said people requiring nursing home care in the next 10 to 15 years were those who worked in the 1960s, 1970s, 1980s and 1990s, built the Celtic Tiger enjoyed by the Taoiseach and paid their taxes and PRSI.

"They find themselves in a situation whereby the State says that this proposal, which is supposedly revenue-neutral, will have a legacy of a new death tax of 15 per cent. It will not be acceptable at a time of such economic strength when the Tánaiste says that the €2.4 billion received by the Government is not necessary."