Mary Harney (Dublin Mid West, Progressive Democrats)

Many of the amendments have the approval of the EU. Others arise out of issues raised on Committee Stage in respect of the provision of greater clarity. We are seeking to make insurance affordable to older and sicker people through what was previously risk equalisation and is now a tax credit. For example, where a company, in this case the VHI, is over-compensated that money will go to the taxpayer. We are dealing here with taxpayers' money and not the money of any individual other company. It would be ludicrous if such money were to go to a company. Where there is over-compensation in respect of a tax credit, then it is the taxpayer who should benefit. We do not believe we are doing so; we believe we have got it right but only time will tell.

The Health Insurance Authority, HIA, will submit a report to the Minister who will then publish it. The matter will then be considered in the context of the budget in terms of adjustments to the tax credit and so on. Currently members get a tax break at the standard tax rate. What we are doing is taking money that would, and has for a number of years, gone to a company. The amount is taken from a person's premium and goes directly to the companies. The tax break is payable at the standard rate of tax and we are reorganising this between younger and older people.

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