Proinsias De Rossa
Question:113 Proinsias De Rossa asked the Minister for Health and Children if his approval has been sought for the sale of all or part of the VHI; and if he will make a statement on the matter. [14805/01]
Written Answers. - Sale of Semi-State Bodies
The Deputy will be aware that my predecessor published the White Paper on Private Health Insurance in September 1999 and in that document the position relating to the future corporate status of the VHI was outlined. The Government will implement legislation to give full commercial freedom to VHI and to secure, in the interests of its members and staff, a corporate status commensurate with the needs of the competitive environment in which it operates, and which will provide it with the optimum operational and strategic flexibility. This legislation will establish the VHI as a public limited company under the Companies Acts and will make it subject to the obligations and responsibilities that apply under company law. The shareholding in the new company will be held by the Minister for Finance.
It is proposed that the legislation to effect change in the VHI's corporate status will allow for third party investment, and include provision for the eventual full sale of the State's interest in VHI, if deemed desirable at any stage following its enactment.
I have, jointly with the Minister for Finance, appointed corporate finance and legal advisers to advise on the conversion of the VHI's corporate status and we shall be considering their advices in due course. My approval has not been sought for the sale of any or all of the VHI and in any event such a decision shall be a matter for Government as I outlined earlier in this reply. The cost of extending free general practitioner cover to all citizens would be in the order of £500 million to £600 million per annum. In the event of such a measure being implemented, a complete re-negotiation of the current contract with general practitioners would be a necessary prerequisite. Accordingly, it is not possible to estimate with any degree of accuracy the precise cost of such a measure.