Joan Burton (Dublin West, Labour)

I am unsure if the Minister understands that the financial world as we knew it has changed. Tax-based capital schemes led his predecessor in office, the Taoiseach, Deputy Brian Cowen, to ruin in respect of the economy. It produced activity which, as it turns out, is unsustainable. The contribution of the Minister for Health and Children, Deputy Mary Harney, and her party, the Progressive Democrats, now happily deceased, to health services has been ruinous. It has produced several investments backed by groups of private investors. They have established private hospitals, some of which are independent and some of which are proposed for public hospital lands.

The basis of these schemes is the use of leverage, which is made easier by the availability of generous tax breaks. It involves high net worth individuals or groups of such people, lending or, more likely borrowing, large volumes of capital. The borrowings are then used to fund private health care initiatives which are given tax breaks by the State at the top rate of 41%. That form of leverage is over. As in his dealings with the banks, the Minister does not seem capable of appreciating this fact.

Earlier this year, the Minister introduced the scheme for hospices. Initially, those connected with the hospice movement knew nothing of the scheme. It turned out a party colleague of the Minister prevailed upon an institution in Munster to seek this scheme, presumably to assist in an investment by a select group of investors. These high net worth individuals planned to borrow money for the investment and consequently receive a very handsome tax break at the marginal rate of 41%. This year, the Minister announced an amendment to reduce the number of beds required for the scheme. I do not understand why the amendment was necessary. However, it was probably on the basis of some kind of representation from some individual investor or private project to which the amended scheme would be more attractive.

Unfortunately, instead of representing fairness and universality of treatment, the health service has been driven into a two-part system by the Government, the better and faster treatment privatised. However, there was the case of Ms Susie Long, who became very ill and died. Her colonoscopy was delayed entirely because she was a public patient. She wrote to Mr. Joe Duffy on "Liveline" using the name Rosie, and referred to a person seeking treatment at the same time as her. It turned out that, luckily, the man had private health insurance and consequently could avail of private treatment. As a result, that person was able to get the test in sufficient time to save his life. In her case this was not possible.

I do not understand why the Minister is so determined to extend these schemes when everyone knows that given the current collapse of the financial markets such schemes are as dead as a doornail. No financial adviser worth his or her salt would advise people to proceed with such a scheme. In any event the money is not available in banks. The banks do not have funds to lend for such schemes. These are the banks to which the Minister proposes to give €10 billion of pensioners' money. He ought to be deeply ashamed.

The Minister's proposals are little better than the Ponzi scheme that gentleman in New York used to rip off approximately $60 billion. This is the Government's own version of a Ponzi scheme. I do not understand what the Minister is playing at. Members have never been informed who are the precise beneficiaries of this proposal. However, although the Government introduced the original scheme less than 12 months ago, the Minister already seeks to amend it to favour more intensively a group of unknown investors. The Minister ought to share this information with the Dáil.

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