The Minister for Finance will tighten up the new savings scheme and proposals on tax relief for long-term care at the committee stage of the Finance Bill.

Mr McCreevy said that, despite speculation, back-to-back lending and depositing, or links with mortgage repayments would not be allowed under the legislation. "Subscriptions to the account must be from an individual's own funds or those of his or her spouse without recourse to borrowings or the deferral of repayment of borrowings already undertaken," he said.

He also proposed to provide tax relief, at the standard rate, for insurance for long-term care, similar to that already in place for relief for medical insurance. Tax relief on premiums will be granted at the standard rate and benefits from the insurance policy in respect of long-term care will be exempt from taxation. The Minister also announced a pilot initiative in relation to more acute private hospital facilities. Capital expenditure on the construction of private acute hospital buildings would now be entitled to capital allowances over a seven-year period. He said this would provide more public beds as a similar number of beds in public hospitals, which had been designated as private would become public.