Frances Fitzgerald (Fine Gael)

This is an interesting amendment. It effectively puts into the law and makes very clear that a State guarantee shall not be provided to enable the board or a subsidiary to raise or borrow money under this section or under any other provision of the Voluntary Health Insurance Acts. Perhaps the Minister of State could clarify if this was at the core of the EU concerns about the subsidy of Government to the VHI and infringing fair competition and competition law. It seems to deal effectively with the concerns expressed by Mr. McCreevy about the operation of the VHI and the State support it was deemed to have received over the years. It was seen as interference with fair competition. This provision will ensure that in future a State guarantee shall not be provided to enable the board or a subsidiary to raise or borrow money. I presume this provision has been written into the legislation in such a detailed way in the interest of fair competition.