Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Deputy should look at the text of my budget speech in which I used the phrase "gold-plated". It was not as the Deputy is describing it. The tax relief that was provided was a relief at the standard rate of tax of 20%. The cap is at €1,000 per adult. Somebody who pays up to €1,000 per adult continues to get the 20% relief. If it goes over €1,000, the tax break is lost on the balance above that. They will still get the relief on the €1,000. Where somebody has an adult policy of €1,200, 20% of €200, would be €40. The big tax take is from those who have very expensive schemes. That is what I am talking about.

I am acting in line with the report of the Commission on Taxation. Given that 44% of the community has private health insurance, the Deputy's proposition is to the effect that they should be subsidised without any limit by the other 56%.

That is what the relief scheme is about. From where does the Deputy thinks the money comes? It comes from other taxpayers. If he is talking about equity, he must look at this aspect. It was unaffordable and will not continue. I will not continue with having 56% of the people who cannot afford private health insurance subsidising those who can. As that is what it is about, we limited the figure, which was reasonable and fair.

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