Sean Barrett (Independent)

I intend to withdraw amendment No. 1. With regard to desired reform, the 12-month period ought to be the outer limit. We need something other than the incumbents determining policy and making assumptions about their potential and actual competitors. Cases have been taken in the courts at a vast cost to the taxpayer. Many of the arguments have not stood up. While people may have been demonised, nobody was produced who was refused cover by one of the other companies. Claiming the contrary is to build the legislation on an unsure foundation. The legislation needs to move away from having the Department of Health protect its own insurance company and to form some kind of arm's length relationship. The producers know about what I describe, and hence the high costs that the Milliman report complains about.

I hope the Milliman report will be circulated to the Senators who attended this debate. It would definitely influence their feelings thereon. To the economist, rising costs are inevitable when one creates a monopoly and protects it so thoroughly, as has happened in the case in question. This is an area in which the Minister's reforming agenda is badly needed. If we had controlled the costs of the 50% of the population who once had health insurance, it would have served as a useful mechanism in trying to control the costs in the public sector, including in respect of medical card patients. The system is a high-cost system because it is protected. Extending the protection for another 12 months should definitely be the last resort.