Vol. 555 No. 2
108 Mr. S. Ryan asked the Minister for Health and Children if he has received a request from the board of the VHI for part privatisation of the company; the response he has made; the Government's plans for the future of VHI; and if he will make a statement on the matter. [18064/02]
The White Paper on Private Health Insurance, published in 1999 set out the Government's proposals regarding the corporate status of the Voluntary Health Insurance Board. The White Paper provided for the establishment of the VHI as a company under the Companies Acts, with full commercial freedom of operation, in the ownership of the Minister for Finance. The possibility of third party investment and eventual full sale of the State's interest in VHI, if deemed desirable by the Government, were also addressed.
Specifically, the White Paper provided for the appointment of a corporate financial institution and legal advisers to advise the Government on strategic options for the VHI. Following completion of the tender process, I, jointly with Minister for Finance, appointed advisers to examine and report on the matter. The consultants have completed their report and it is currently under consideration.
In the VHI's annual report and accounts for 2002, the chairman of the board states that since the publication of the White Paper, VHI has been preparing for the development of the operations which were envisaged in that document, including the incorporation of VHI with full commercial freedom. I am aware from the chairman that the board is in favour of VHI becoming a private insurer. The board's position will be taken into account in the context of the consideration to be given by the Government to the independent professional advice received, which I mentioned earlier. When this has been done, I will be in a position to inform VHI as to the course of action proposed by Government in the matter. Ultimately, any proposals by the Government for a change in VHI's corporate status will require legislation and will therefore arise for consideration and discussion in the Houses of the Oireachtas.
