Charles Flanagan (Laois-Offaly, Fine Gael)

I move amendment No. 7:

In page 7, between lines 16 and 17, to insert the following:

"5.—(1) The Board must achieve solvency and prove itself to be so before any additional powers are vested on it so to ensure fair competition within the market.

(2) The Board shall foster competition within the health insurance market and refrain from engaging in any actions which may hinder the operation of competition within the market.

(3) The Board shall cease to tie or bundle an of its existing ancillary products, or future ancillary products, to its health insurance products.

This matter was considered at length on Committee Stage and the amendment has been resubmitted on Report Stage by Deputy Reilly. He considers it of the utmost importance that the Voluntary Health Insurance agency should not be allowed to engage in further activities until it reaches a situation of solvency. It is certainly not clear from the Bill if there is such a sanction on the VHI that it would be solvent at all times. It is important that it would be solvent and not have the type of preferential treatment it has enjoyed in the past. In the interests of a competitive health insurance market, it would be a fair and reasonable requirement that this House would place on the Voluntary Health Insurance board that it would achieve a level of solvency in respect of its core business. Because of that I ask the Minister of State to reassure the House that the VHI will be in a position to achieve solvency. I am reluctant to divide the House on the issue but I ask the Minister of State to use his good offices to clarify matters.

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