Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 255: To ask the Minister for Health and Children her views on abolishing the 2% health levy for people over the age of 65 in view of the financial burden pensioners are faced with; and if she will make a statement on the matter. [19726/07]

James Bannon (Longford-Westmeath, Fine Gael)
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Question 273: To ask the Minister for Health and Children her views on the abolition of the two per cent health levy for persons over 65 years of age; and if she will make a statement on the matter. [19813/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 255 and 273 together.

The Health Contribution was introduced by virtue of the Health Contributions Act 1979 and came into effect on the 6th April of that year. The contributions are levied on income at a percentage rate set in pursuance of the Health Contributions Act and are paid over to the Minister for Health and Children in respect of the Vote for the Health Service Executive. The current rate of contribution is 2% of gross income up to €1925 per week or €100,100 per annum and 2.5 % on the balance of income in excess of those amounts in a contribution year. Subject to exemptions, the rate of contribution is applicable to all persons over the age of sixteen with reckonable income, earnings or emoluments.

The exemptions, as outlined in Section 11 of the Act, are those whose income does not exceed €480 per week, those who are fully eligible for health services as set out in Section 45 of the Health Act 1970 (i.e. medical cardholders in this State, including those workers covered under EC Regulation 1408/71), recipients of a Social Welfare Widow's/Widower's Pension, One-parent Family Payment or Deserted Wife's Benefit/Allowance, as well as those in receipt of a Widow'/Widower's pension acquired under the social security legislation of an EU member State.

When the primary legislation was enacted no upper age limit applied to the health contribution. However, as the Deputy is aware, following the announcement in Budget 2001, full eligibility for health services under Section 45 of the Health Act was granted to those aged 70 and over, effectively placing an upper age limit of 69 years on liability to pay health contributions.

There are no current proposals to alter any of these exemptions or to provide an exemption from paying health contributions to those aged between 65 and 69.