Dáil Éireann Debate, Tuesday - 26 November 2013
588. Deputy Billy Kelleher asked the Minister for Health if the reported €150 million Exchequer investment in VHI will be found from the 2013 health budget or will have to be added to the 2014 budget; and if he will make a statement on the matter. [50231/13]
View answerIn order to comply with the European Court of Justice Judgement of September 2011, the Government agreed to take all necessary steps to bring VHI to the point of authorisation, but it has made no commitment to date to capitalise the company. It is premature to speculate on the amount of capital, if any, that might be required by the VHI. It is currently preparing an application to the Central Bank of Ireland (CBI) for authorisation. The CBI will determine the level of any capital requirement as part of its assessment of VHI’s financial position and readiness for authorisation.
If Exchequer assistance is required, a separate Government Decision will be taken at the appropriate time. Subject to Government approval, any capital injection would be expected to be in the form of a repayable loan at market interest rates and would come from general Exchequer funding, not from the health budget. Any such capitalisation would also require the approval of the European Commission under State Aid rules. I will be bringing proposals to Government very shortly regarding the VHI and authorisation and will also continue to engage with the EU Commission on the matter.
