I propose to take Questions Nos. 85, 266 and 273 together.
The agreement which was entered into between my Department and the Medical Protection Society in May 2001 was intended to ensure that consultant obstetrician-gynaecologists in practice in Ireland could continue to secure professional indemnity cover at an affordable cost. The risk that up to 30 of them would not be able to continue in practice arose from a decision by the Medical Defence Union to increase the cost of indemnity cover from £68,000, or €86,342, to £393,000, or €499,007, for this group. I was concerned that the inability of this small group of practitioners to secure indemnity cover for the period leading up to the introduction of enterprise liability would precipitate a crisis in the provision of obstetric services. Apart from its impact on the public services, it could have led to the closure of the two remaining private obstetric facilities at Mount Carmel Hospital, Dublin, and at the Bon Secours Hospital, Cork.
In an effort to avert this crisis my Department wrote to the Medical Defence Union and the other mutual defence body, the Medical Protection Society, asking them for proposals which would allow obstetricians to have access to secure and reasonably priced indemnity cover for the 12-18 months leading up to the introduction of enterprise liability. The proposals received from the MDU and the MPS were evaluated by officials of my Department and their external insurance advisers. They recommended acceptance of the MPS's proposal.
The agreement with the MPS provides for the subscriptions of Irish consultant obstetricians to be placed in two funds to cover consultants in the public sector and the private sector. When enterprise liability for consultants is introduced the balance remaining in the fund relating to consultants in the public sector will be transferred to the Exchequer less any moneys expended on claims against those doctors which had been lodged after the effective date of the agreement. The liabilities arising from these claims would be transferred with the balance of the fund. The fate of the fund relating to consultants in the private sector would be the subject of discussions with the MPS and representatives of the private consultants at the appropriate time in the context of the long-term arrangements to be made for this group.
The agreement does not provide for any transfer of funds to the MPS, whether directly or indirectly, other than the normal reimbursement arrangements in place for consultants in the public hospital system. These arrangements apply to consultants in all specialties whether members of the MDU or MPS. The agreement with the MPS provides for the public consultants' fund to be transferred to the Department within one month of the introduction of enterprise liability for consultants. The position of the fund has recently been reviewed with the MPS and I can confirm that no payments have been made from it to date. I am satisfied that the moneys placed in the fund plus investment income will be transferred to my Department in 2002. Therefore, the factual position is that there has been no transfer of funds to the MPS regarding these liabilities.
