Fergal Browne (Fine Gael)

We are in favour of risk equalisation but there are different ways of implementing it. In Australia it was applied only in respect of 65 year olds. As far as I am aware BUPA accepts the principle but disagrees as to the payment involved. EU Commissioner Mr. McCreevy also has major concerns, as does the Minister, which is why she is awaiting three reports, from the Competition Authority, the Health Insurance Authority and Mr. Barrington.

The Minister spoke about the different solvency requirements for VHI. We have heard about that matter for years but no action has been taken. Is it not time for an independent audit of the assets of VHI to ascertain how well off or otherwise it is? Is it on the verge of bankruptcy, as it claims?

The Minister has known of this since July but has only decided to take action tonight. It also emerged during the debate in the Dáil that the Minister for Enterprise, Trade and Employment, Deputy Martin, knew about it in 2003 and assured the House that what has happened tonight would not happen. Competition works as it provides more choice for consumers and a cheaper and more varied service. The Minister compared the British example, which is grossly unfair as one cannot compare the NHS with our system.

The purpose of derogation is to encourage competition but the Minister has now removed that and we have the anomaly whereby VIVAS will benefit from a derogation but other companies will not.