Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

I am not opposed to the section. However, one aspect of this matter relates to the amount of money the State pays on private health insurance and the fact that the full cost is still not being imposed in respect of private patients in public hospitals. I do not have any opposition to people who have private health insurance. I am of the view that people take out such insurance because they believe it to be in their best interests to do so and as a result of the fact that the public system is in chaos. Deputy Boyd Barrett made a very valid point, namely, that it is going to get worse. Under the new service plan, savings of €666 million have to be made. That will exacerbate people's fears about the health system. It does not appear that the Government has a joined-up approach to this matter. What is involved is saving money on the taxation side. What the Minister for Health is doing involves cutting the health budget. In the middle of it all are people who have been obliged to take out private health insurance because they believe the public system does not work. Those individuals are being squeezed as a result of the imposition of higher premiums and additional measures. The public sector is being squeezed by another Minister and chaos is the result.

The Minister stated that tax reliefs are aimed at trying to deal with behavioural issues and to provide incentives. When we wanted people to build hotels, nursing homes or houses in Leitrim, incentives were provided or measures to effect behavioural changes were introduced. The provision in this section is designed to encourage people to take out private health insurance. The measure is designed as a relief at source and I do not see how it will encourage people to take out such insurance. As the Minister stated, one will approach one's insurance provider and check the position. One will not see the tax relief the State pays. If it were structured in a way which meant one would pay the full amount and receive a rebate, would this not be more effective in terms of encouraging behavioural change? Has the Minister considered amending the provision? I do not understand how it is going to change people's behaviour. It will reduce the premiums but because the increases in the past five years have been so great, whatever benefit people receive from the State will represent only a small proportion of the overall cost involved.