The proposed motion calls on the Government to “honour the commitment in the Programme for a Partnership Government to remove discrimination against small businesses and family farms” under the Fair Deal nursing home scheme.

In 2015, a report and a cross-government working group acknowledged the heavy burden placed by the scheme’s means-testing rules on family farms. No further progress has been reported since then, and the rural independent TDs are now asking for the working group to publish its conclusions within three months.

The motion was signed by TDs Mattie McGrath, Michael Collins, Noel Grealish, Michael Harty, Danny Healy-Rae, Michael Healy-Rae and Michael Lowry.

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They also call on the Government to “publish and bring forward the necessary primary legislation required to bring effect to these proposed changes to the Nursing Homes Support Scheme without delay following the completion of the review of this issue; and ensure that sufficient funding is allocated in Budget 2018 to allow for these changes to become operational in 2018”.

Three key changes

The three key changes requested in the motion are:

  • A reduced charge on the farm/business assets that removes uncertainty and protects the future viability of the family farm. Under current rules, farmers entering the Fair Deal scheme must pay 7.5% of the value of the assets they own every year towards the cost of their care. A €36,000 discount applies and the charge applies for only three years for their main residence, but the charges continue indefinitely for other assets such as farmland. While some assets may be able to generate sufficient returns to cover the charges, this is not the case for farms. The TDs argue that this is “fundamentally unfair and has a disproportionate impact on low-income farm families, where any further dilution of the farm assets could make the farm non-viable for future generations”. Tipperary TD Mattie McGrath told the Irish Farmers Journal prior to the introduction of the motion that he and his colleagues were seeking a 90% discount similar to that applied to the value of farm assets for tax purposes.
  • A reduction in the time an asset needs to be transferred prior to entering a nursing home from five to three years. The current five-year rules means that some families have delayed access to nursing home care for an elderly member after transferring ownership to a younger family member to preserve the farm from the charges.
  • Clarification on the definition of sudden illness or disability. Under these circumstances, Fair Deal charges apply to farm assets for three years only; however, the TDs say “there is considerable vagueness in the definition of ‘sudden illness or disability’”.

    • These changes are in line with the IFA’s submission to the working group two years ago.

    Financial stability

    The Government has proposed an amended version of the motion. It acknowledges “concerns that farming and business families have in relation to the nursing home support scheme, particularly regarding the uncertainty of future liabilities based on the farm or business value in cases of family members working the farm or business”. However, it also says it is “essential that any amendments made to the nursing home support scheme do not in any way negatively impact on its future financial stability”.

    The Government motion pledges to “bring forward the proposed changes in relation to this issue in the context of Budget 2018,” including necessary legislation, but without giving an exact deadline.

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    Full coverage: Fair Deal scheme