Seanad debates

Wednesday, 25 April 2012

Competition (Amendment) Bill 2011: Committee Stage

 

1:00 pm

Photo of Colm BurkeColm Burke (Fine Gael)

I assure Senator Barrett that the solicitors in the country are not the cause of anti-competitive practice. As proof, the first case taken to a European court relating to anti-competitive practice was dealt with by a firm of Cork solicitors against Comhlacht Siúcra Éireann, which refused to sell sugar to distributors and decided to sell directly to shops. That was one of the first cases taken to a European court dealing with anti-competitive practice. That court made a judgment against Comhlacht Siúcra Éireann in that case. We had just joined the European Community and there was a new forum available to ensure competition in Ireland.

I will raise an issue relating to health care, particularly VHI and the role it is playing in the area. I have filed a complaint with the Competition Authority with regard to the following matter. In the past 95 years we have no new private hospital built or opened in Cork. Those behind the Mater Private Hospital in Dublin are prepared to come to Cork and offer private health care, and two of the health insurers are prepared to provide cover for patients and pay for care in the proposed new hospital. However, VHI has decided otherwise, which is anti-competitive for two reasons. First, the VHI is prepared to quote under the cost of the existing health care providers in Cork and, second, the fewer beds there are in the private health care centre, the fewer consultants who can practise. The charges are therefore set in stone.

I have repeatedly raised the need to reduce the cost of health care. Last year we spent €13.4 billion on health care and we got €13.317 billion in income tax. If there is any sector that needs a reduction in cost it is health care. This commercial State company has decided it will not allow competition, which is absolutely disgraceful. Its role is not to decide how many private beds are used; it should instead ensure that the people to whom it provides cover get an adequate standard of cover and are prepared to pay for that cost. The company seems to be taking on a totally new role which is to regulate who can open private health care facilities. That area should be carefully examined. I accept that the Minister does not have a direct role in how VHI arrives at its decisions but the company's role is not to control the number of available facilities. The issue must be dealt with in taking into account the cost of health care. I understand the company is hiding behind a case pending in the courts that deals with a different issue. It is the wrong way to arrive at a decision and now, more than ever, we must have competition in that area. We must tackle the problem.

Senator Barrett's proposal should be kept in mind in dealing with this issue and the role of State agencies. We must ensure that any anti-competitive practice is not allowed to continue in certain areas, and serious consideration should be given to the matter.

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