Brendan Smith (Cavan-Monaghan, Fianna Fail)

I thank Deputy Charlie Flanagan for raising some important issues of competition and the dominant position of the VHI. This amendment is not necessary. The Competition Authority is an independent body that is not subject to direction from legislation of this nature. The Competition Authority has powers under section 30 of the Competition Act to take an action where any enterprise may be engaging in activity that could be regarded as anti-competitive. Deputy Flanagan referred to the need for the Competition Authority to have that authority. VHI is entitled to the same commercial freedom as other operators and to the same presumption of innocence as any undertaking in any market.

As evidenced by the reported risk imbalances in the profiles of the different insurers the position in the health insurance market is that VHI is not in a dominant position, notwithstanding its market share. It is internationally recognised that new entrants to a community rated health insurance market have significant pricing advantages in the absence of satisfactory risk equalisation arrangements. I hope these comments reassure Deputy Flanagan that there is no need for his amendment.

See this speech in context