I move:
That Dáil Éireann approves the following regulations in draft—
Health Contributions (Yearly Reckonable Income) (Variation) Regulations, 1984
a copy of which regulations in draft was laid before the House on 14 March 1984.
It is provided in subsection (3) of section 9 of the Health Contributions Act, 1979, that the Minister for Health may, by regulations, vary the rate at which health contributions are payable and also the income ceiling up to which contributions are payable. It is also provided in subsection (5) of section 9 of that Act that a draft of any such proposed regulations shall be laid before each House of the Oireachtas and that the regulations shall not be made until a resolution approving of the draft has been passed by each House. The draft regulations now before the House deal with the income ceiling. It is not proposed to vary the rate figure which has stood at 1 per cent since 6 April 1979.
The income ceiling is at present £11,000. It is proposed to raise this to £12,000 with effect from the commencement of the next contribution year, viz. 6 April 1984. This will result in an increase of £10 a year in the maximum contribution payable. This increase will be collected from most contributors towards the end of the 1984-85 contribution year, that is, in the first quarter of 1985. The estimated additional yield is £2 million a year but in the current financial year ending 31 December 1984, only about £200,000 extra will be realised. The balance of £1.8 million will come in the first quarter of 1985.
The Health Contributions Act, 1979, provides that when setting a new ceiling figure the Minister shall take into account any changes in the average earnings of workers in the transportable goods industries as recorded by the Central Statistics Office since the date by reference to which the ceiling figure was last determined. The latest recorded information on average weekly earnings in those industries relates to June 1983. The average weekly earning figure increased from £129.33 per week in June 1982 to £141.39 by June 1983. This represents an increase of 9.3 per cent and when this is applied to the current ceiling of £11,000, a new ceiling of £12,023 or say £12,000 per annum emerges.
I should mention the new arrangements applying to the collection of health contributions from farmers. At present, health boards are responsible for the collection of these contributions from approximately 100,000 farmers and it had been the practice to use a notional system, rv and a multiplier, to determine farm income for this purpose. In July 1982, the High Court ruled that the use of farm rv and a multiplier to determine farm income was contrary to the Constitution. To deal with this situation, and with the consent of the Minister for Finance, the Minister made regulations which provide for the assessment of farmers' income on a factual basis as in the case of other self-employed persons. In effect this means that farm income is assessed on the basis of the profits or gains from farming activities less any expenses incurred in earning these profits and less any superannuation contributions which may have been paid. Demands based upon factual assessments, including any arrears outstanding, have recently been issued by the health boards to all farmers liable for health contributions.
With regard to collection arrangements in the case of farmers' health contributions the general opinion held was that health boards were not an appropriate agency to collect health contributions, or indeed, the youth employment levy and the 1 per cent income levy, from the farming sector. The situation has now been corrected by the transfer of responsibility for collecting health contributions and levies from farmers to the Revenue Commissioners with effect from 6 April next. Regulations giving effect to this decision have been made.
I have been concerned about the large scale evasion of liability for health contributions by the farming community and other self-employed persons. These contributions form a very important element of the finances available to fund health services expenditure. Any failure to achieve targets for health contribution receipts in these times of financial stringency could only result in a reduction in the extent or quality of the services provided. It is manifestly unfair that a situation should exist whereby persons who have reneged on their obligations in this regard should be able to obtain health services without penalty. Accordingly, I have advised health boards to make full use of every enforcement procedure available to them in the collection of amounts outstanding.
As an added means of ensuring that all persons liable for contributions do in fact discharge their liabilities fully and promptly I propose to introduce regulations in the near future providing for a hospital admission charge of £100 in the case of persons seeking in-patient services in public hospitals who have not discharged their liabilities for health contributions. This charge will be additional to any payments for private or semi-private accommodation. These regulations will come into effect from 1 June 1984 and will apply in respect of arrears as at the end of the previous contribution year, in effect 5 April 1984.
The purpose of the motion today is simply to raise the ceiling level for health contributions from the current figure of £11,000 to a new figure of £12,000. I now ask the House to approve of the regulations before it in draft form.
