Brendan Smith (Cavan-Monaghan, Fianna Fail)

Amendment No. 9 will clarify that the provisions included in section 8(3) will also apply to the subsidiary established for the purpose of carrying on the board's health insurance business under section 10. It is noted that this amendment does not extend to section 8(1). However, it clarifies further that the relevant subsidiary, on establishment, shall be required to be consistent with provisions of the VHI Acts and that it shall have the objects and powers necessary for the attainment of the principal objects of the subsidiary.

The amendment proposed by Deputy Jan O'Sullivan on Committee Stage was given detailed consideration. As the Minister for Health and Children, Deputy Harney, stated at the time, the structure of the Bill provides that VHI cannot dispose of any share in subsidiaries that are carrying on functions that are excluded from this section. The excluded function specifically encompassed the functions within section 2 of the 1996 Act, the board's health insurance and related business. This is a key limitation and it would not be appropriate, given the thrust of the entire Bill, to include a broader limitation. Nor would it be feasible to limit the board in respect of any share disposal in the manner proposed.

Since Committee Stage, the provisions around the establishment of the subsidiary to carry on the health insurance business, has been given further consideration by the Parliamentary Counsel. It is considered desirable to specify that the memorandum and articles of association of the relevant subsidiary avail of the provisions contained in section 8(3). It is clear that the relevant subsidiary, being the health insurance business subsidiary, will not come within section 8(1). Consequently it will be appropriate to accept the amendment I will move to section 10. I urge the House to oppose amendment No. 8 and approve amendment No. 9.

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