State urged to amend nursing home scheme after loophole found

THE GOVERNMENT has been urged to amend the Fair Deal nursing home scheme after it emerged entire farm holdings could be confiscated by the state as payment for care.

Fine Gael agriculture spokesman Michael Creed, TD, said the loophole was exposed by his colleague Paul Connaughton, TD, during a debate in the Joint Oireachtas Health Committee.

“This scheme, which places a 5% charge over a maximum three-year period on the family home, has no limitation clause concerning what other assets can be absorbed by the state,” he said.

Mr Creed said an asset like a family farm can be levied at 5% a year for as long as a person remains in private nursing home care, “Over time this could lead to the value of an entire farm holding being owed to the state.”

Mr Connaughton earlier told the committee one could have an average charge of e800 a week for nursing home care.

That is roughly e40,000 a year. Over 10 years, it is e400,000. The value of a normal 40-acre farm going on present prices would be eaten up paying for this care.

“A culture of expectation exists among family members that some day they will inherit the family home and the farm.

“People who do not come from a rural background might ask why anybody else should pay if there is money or assets available. This must be balanced against the culture as it exists. I have heard the minister speak about this on a number of occasions and I accept it is a difficult matter.

“However, I believe we are making a monumental mistake in not at least capping assets other than the house for three years,” he said.

Health Minister Mary Harney said she had some sympathy with the point made and will consider the issue. Stressing that nobody will pay more than the cost of their care under the scheme, she said the average length of stay in a nursing home is two to three years.