Maurice Hayes (Independent)

It is necessary that operators in the sector reflect the broad range of risks both in the demography and epidemiology of the society. There might be other ways of doing that.

We should welcome the entry of Mr. Sean Quinn to the sector, not only for taking over Bupa at a difficult time for many people but also because his background in insurance indicates he is capable of injecting new life and ideas into the market. While competition is necessary in this sector, a body such as the VHI is essentially anti-competitive. The competition should be extended to the providers and the various insuring organisations can use their muscle and leverage to ensure a better deal.

It is not a great idea to give transfers to people without being assured of their efficiency and effectiveness in using the money. Over the years a comfortable relationship has grown up between the VHI and the hospitals and consultants, whereby the VHI sees itself as a conduit for supplying money to them. The organisation could do an enormous amount for efficiency within the health sector by driving down prices for procedures such as scans, tests, treatments and so forth. That should be borne in mind when the Minister is examining this issue. This proposal, however, is sufficient for the day and I support it.