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Harney's 'death tax' criticised by former FF minister
Kevin Rafter Political Editor



FORMER Fianna Fail minister Michael Woods has criticised the government's plan to make elderly people pay for the cost of nursing home care through a charge on the value of their homes after their death.

Woods spoke out against the proposals from health minister Mary Harney at a meeting of the Fianna Fail parliamentary party last week.

The former minister, who is expected to contest the next election in Dublin North East, called for longterm care for the elderly to be financed through the social insurance fund. This multi-million-euro reserve includes money collected from PRSI contributions from employers and employees.

It is believed that Woods, who could not be contacted yesterday, finds it unfair that the elderly are the only group being asked to pay a special charge for their care.

Harney's plan, which was published last week, received mixed responses from groups representing the elderly. From January 2008, those needing longterm care will have to pay 80% of the costs involved.

Under the plan, people with an income less than the cost of their nursing-home care would meet the difference though a bill . . . due after their death . . . which would be capped at a maximum of 15% on the value of their home.

There is some unease in Fianna Fail circles over the scheme, although many TDs are waiting to see how the issue develops with the public before speaking out. Several TDs said the plan needed to be explained clearly to the public.

"It seems a good proposal but it will be problematic if it is not sold and the 'death tax' label sticks, " one said.

Pat Carey, a Dublin North East TD, said the plan "merited considered reflection" and "has the potential to be a very good scheme".

Liz McManus, Labour's health spokesperson, said the complexity of the scheme could cause considerable stress for older people.

"It may deter people from seeking residential care or may allow others to be pressurised into signing the home over to other family members, " she said.




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