Nursing home patient scheme delayed

DELAYS in introducing the new payments scheme for nursing home patients will save €85m towards the Government’s cost-cutting plan.

The Fair Deal scheme, which overhauls the subvention supports system, was due to come into effect last January, but it has been bogged down in legal and logistical problems.

A total of €110m was set aside for the scheme this year, but just €25 million will now be spent — €13m on 200 extra nursing home beds and €12m for increased subvention arising from increases in nursing home fees.

Health Minister Mary Harney said the fact that funds allocated for the scheme were not being used would contribute to total savings of €144.35m by her department.

Other savings she outlined include €21.35m in administrative costs to include cuts in payroll, advertising, procurement and consultancy fees. A further €38m is to be saved from what she described as the “slower than expected roll-out” of unspecified new services provided for in the December 2007 budget. “These savings will not affect the provision of health services to patients and clients or the HSE capital plan in 2008,” she said.

The Department of the Environment said it would make savings totalling €48m from this year’s budget of €3.2bn. About €8m will be trimmed from current spending, but while a department spokesman could not give details, he said key services in housing, sewage and water would not suffer.

The remaining €40m is to be saved by taking €10m from the landfill remediation programme and €30m from the Gateway Fund set up last year to encourage development of the nine cities identified as regional gateways under the National Spatial Strategy.

Meanwhile, Minister for Overseas Development Peter Power insisted commitments to overseas aid would not be diluted by the Government’s announcement that €45m would be shaved from the budget this year.

The current commitment is for annual spending equalling 0.54% of national wealth (GNP) and that percentage will be achieved despite the cuts.

Annual spending is due to increase to 0.6% by 2010 and to the United Nations target of 0.7% by 2012 and Mr Power said Ireland remained on course to reach those commitments. “The decisions announced today across the Government will help secure the Irish economy and in turn the resources available to Irish Aid in the years ahead,” he said.