Mary Harney (Dublin Mid West, Progressive Democrats)

I agree with Deputy Reilly that it is unfair and uncompetitive if one company is obliged to put 40% of its premium towards its solvency requirements while another is not. That is why we have moved to introduce legislation to end that. Equally, however, if we did not extend the authorisation time from 1 January until September, the VHI would not have been authorised and would have gone under. The consequences of that for its 1.5 million customers are obvious. It is something of a chicken and egg situation. Without this measure there is no question of the VHI being in a position to submit a business plan proving its viability and sustainability. Therefore, this legislation is necessary as a first step towards authorisation.

I hope shortly to be in a position to answer Deputy O'Sullivan's question and, before September, to enter into discussions with the company after this legislation is passed, after which I will bring proposals to the Government. Any proposals for an injection of capital, from whatever source, will require legislation. I hope to do so in order that the path can be cleared as quickly as possible. These measures are required for our own reasons and to satisfy the requirements of the regulator and the European Commission. The company itself needs to know the position, as do its members and competitors. We cannot delay outlining how we propose to inject the capital that is required to facilitate the authorisation of the company. I intend to do that between now and the autumn session.

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