An additional 7,000 day-care centre places for the elderly are to be created over the next five years.
A further 1,370 geriatric assessment and rehabilitation places will be created while another 800 extended-care beds will be created annually.
Speaking at the AGM of Age Action Ireland, Minister of State at the Department of Health, Mr Ivor Callely, said the Government has earmarked an additional €77 million to fund these developments, while Age Action itself is get €250,000 this year to run its services.
"One in five of the population of the Community is an older citizen and the ratio is set to rise to one in four quite rapidly," Mr Callely said.
"Estimates would suggest that by the year 2011 our population aged 65 years and over will have grown by 25 per cent.
"Each year our over-65 population increases by 6,000 and the number of people aged 80 and over goes up by about 1,500. There will, therefore, be a continuing need to challenge negative attitudes to aging and older people," he said.
Mr Callely rejected the view of economists who portray old age as a burden on the working population. He said such had view had lead to the marginalisation of older people - a view that needed to be challenged.
"Economists sometimes portray old age as a burden on the younger generation, because of the taxes and social insurance contributions which must be paid by those in employment to fund pensions and health care of older citizens," he said.
" . .The majority of older people are healthy and fit. Society must strive to overcome this marginalisation of older people by encouraging more positive attitudes to aging amongst the elderly themselves and the population in general."