Darragh O'Brien (Fianna Fail) | Oireachtas source

I think it was in there somewhere. The Minister of State, Deputy Hayes, stood up for the Minister for Finance so he is watching Deputy Noonan's back. He did what he was told yesterday.

We trenchantly oppose section 8. The amendment softens the blow by suggesting the amounts referred to shall increase annually in line with medical inflation as measured by the consumer price index published by the Central Statistics Office. The Minister's limits are €1,000 per adult and €500 per child and we suggest that each year it should be allowed to increase in line with medical inflation. That does not mean we support the restriction in the section, which amends section 40 of the Taxes Consolidation Act. The Department provided figures yesterday suggesting only 47% of policies are affected. The bottom line is that the policies of the wealthy are being affected but the vast majority of people lobbying the Department and Members are those with normal plans, the equivalent of VHI plan B. Generally speaking, they are people from the age of 50 upwards and they will find it difficult to find another insurer. There have been significant increases in net premia on the basis of the reduction in tax relief.

It is the worst possible time for the Government to do this when the private health insurance sector is in crisis. Tens of thousands of people have left the market, most of whom are young healthy people and this further increases the premia. There is also been a change in stamp duty on the risk equalisation and it will further increase premia. The Minister for Health, Deputy James Reilly, has introduced a charge for someone like me, a taxpayer who just happens to have private health insurance, for something I do not receive. If I go to a public hospital, I will be charged €800 per night where the public patients will be charged €80 per night. This is being done by the Minister for Health rather than the Minister for Finance. It means public hospitals will cherrypick and prefer someone who they can take in at €800 per night to someone they can take in at €80 per night. More and more people will leave private health insurance. People are still struggling to pay but they make a family decision to have protection in place. The amendment suggests that while we do not agree with the reduced amount of €1,000 and €500, the Minister should increase the amounts in line with medical inflation as measured by the consumer price index.