Jan O'Sullivan (Limerick East, Labour)

I do not particularly support Deputy Reilly in objecting to the specifics of the legislation. However, the Bill essentially proposes an awkward measure to deal with risk equalisation. It is not what any of us would consider ideal, and we will have to wait some years before we have appropriate legislation.

The fundamental problem is that people are obliged to take out private health insurance because they do not trust the public health system. Many do so while disagreeing with the concept of the separation of private and public patients and the dual system which incorporates that concept. They feel obliged to seek private cover because they are fearful of the consequences of not doing so. That is not an acceptable system. This conglomerate arrangement is different from what pertains in every other civilised country. The Labour Party accepts this legislation because we consider it essential that there be a rebalancing between younger and older clients of health insurers in order to ensure that insurers receive some form of compensation to allow them to continue to provide a service to older people.

However, this does not mean we are in favour of the current system. This legislation is necessary in the circumstances in which we find ourselves, but we do not support the mixed arrangement whereby more than 50% of the population take out private health insurance because, as Deputy Reilly observed, they have no confidence in the public system. That is not the case in any other jurisdiction. I am sure the Minister agrees to some extent that the public health service is currently subsidising the private system. That is unacceptable. We must find an alternative system. I acknowledge that the Minister is setting up a group to examine this, but it will not report until some time next year. Both of the main Opposition parties have already put forward proposals for an alternative one-tier system that would involve people paying into a universal system of health insurance. As I said, my party supports this legislation because it is necessary, but we do not support the mixed health system in operation in the State.

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