Mary Harney (Dublin Mid West, Progressive Democrats)

It is happening. I increased it by 50% last year in the Estimates and it will be increased again this year. That will add to the cost of insurance, no doubt, but it is the right thing to do. The public hospital system should not have to subsidise private health insurance. It is disingenuous of Deputies to say we introduced legislation in the Oireachtas that said, in effect, if the market equalisation is 10%, risk equalisation must be introduced, if it is below 2% it cannot be introduced and if it is somewhere in between, it is introduced at the recommendation of the HIA, but at the discretion of the Minister. The Oireachtas gave the Minister of Health and Children that function. It did not say the HIA will decide when we introduce risk equalisation. It says the Minister cannot introduce it unless he or she gets a recommendation to do so. However, even if one receives such a recommendation, one is required by law to go through a certain process of consultation with those who will be affected, which I did.

It is not correct that the position with regard to a reserve does not matter. If another Irish company must meet a reserve requirement and put 50% of its premium income into a reserve fund, is it fair that another company, which has 80% of the market, is not subject to the same requirement? Although this matter has not yet been adjudicated on in Europe, regardless of what decision is taken on the matter in Europe, the current position is not fair and distorts the market. If a new company which entered the market recently offering innovative products must put aside 50% of its premium income to meet the requirements of the Irish Financial Services Regulatory Authority, the body which——

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