Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 132: To ask the Tánaiste and Minister for Health and Children the arrangements she is making to provide for repayment of the excess health levy of PRSI (details supplied) by residents of the Six Counties employed in this jurisdiction; the steps she intends to take to advise these workers of their entitlement to a rebate; if the rebate will be available retrospectively to 1994; and if she will make a statement on the matter. [14058/05]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The health contribution levy was introduced by virtue of the Health Contributions Act 1979 and came into effect on 6 April of that year. The contributions are levied on income at a percentage rate set in pursuance of the Health Contributions Act and proceeds are paid to the Minister for Health and Children in aid of the vote for health. Subject to certain exemptions, the levy is applicable to all persons over the age of 16 with reckonable income. The current rate of contribution is 2% of gross income.

According to Regulation (EC) 1408/71, a person employed in one member state who resides in another member state and who returns to his state of residence at least once a week, is classed as a frontier worker. Under Article 20 of the regulation:

A frontier worker may. . . .obtain benefits in the territory of the competent state. Such benefits shall be provided by the competent institution in accordance with the provisions of the legislation of that State, as though the person concerned were resident in that State.

This provision is designed to ensure that the frontier worker can obtain all health services in both the member state of employment and the member state of residence, in both cases at the cost of the competent institution.

In the case of a frontier worker employed in Ireland and resident in Northern Ireland, the competent state is Ireland and the competent institution is the Health Service Executive. Thus, under the regulation, such a person is entitled to obtain health care both in Northern Ireland or in Ireland, but in both cases the competent state — Ireland — and the competent institution — the Health Service Executive — are responsible for the costs. Under the bilateral agreement on reimbursement of health care costs that exists between Ireland and the UK and as provided for in Regulation (EC) 574/72, Ireland reimburses the UK for the cost of health care provided to those persons resident in Northern Ireland or any other part of the United Kingdom who are employed in Ireland and who therefore receive health services in the UK, under Regulation (EC) 1408/71, on behalf of and at the cost of Ireland.

Therefore, when a person resident in Northern Ireland is employed in this State, he or she is liable to health contributions on the same basis as any other individual employed in the State unless he or she is exempt from the payment of health contributions on any of the grounds provided for in the legislation.