Mary Harney (Dublin Mid West, Progressive Democrats)

The principal purpose of amendment No. 12 is to clarify certain functions of the VHI board by setting them out more explicitly than is currently the case in the existing section 3(a). In addition, it provides for the board to establish a service company to provide services to the board itself or to other subsidiaries within the group. It is common practice within the insurance for a company which adopts a parent company structure to establish a services company, which typically employs all the staff in the group. This service company then supplies staff to other companies in the group. Amendment No. 16 mirrors what is provided in amendment No. 12 in respect of new activities.