Dáil Éireann Debate, Wednesday - 2 May 2012
148 Deputy Billy Kelleher asked the Minister for Health if he will confirm that he has now responded to the most recent correspondence from the European Commission in relation to the regulation of the VHI by the Central Bank of Ireland; if he will outline the content of this response; if this response will be published; and if he will make a statement on the matter. [22136/12]
Amharc ar fhreagraAs the Deputy is aware, the European Commission took a case against the State regarding the VHI's derogation from the EU Non-Life Directives which have exempted it from the requirement to be authorised by the Central Bank of Ireland. The Court of Justice of the European Union ruled against the State on 29 September last. In response to this judgement, the Government agreed to:
Engage with the Commission to address the ruling;
Work with the VHI and the Central Bank on the VHI's application for authorisation, with a decision to be taken later regarding the question of capitalisation;
Examine the legal and legislative requirements to allow for the incorporation of the VHI as a limited company, in order to address the concerns of the EU Commissioner for Competition that the VHI may benefit from an unlimited State guarantee;
Examine other options for the future status of the VHI.
The Government's plans and a realistic timetable were outlined to the European Commission on 9 December last. Resolution of the issues will involve a number of steps. Irish officials have met with officials of both the Directorate General for Competition and the Directorate General for Internal Market and Services since the beginning of the year and will continue to engage with them on an ongoing basis. The Commission responded on 27 February in a Letter of Formal Notice, a procedural notification that the Commission is obliged to issue within six months of a judgement. The terms of the Formal Notice have been considered in detail in my Department and following further discussions with the Commission in April, a formal response was issued on behalf of the Government on 26 April.
In relation to publication of the response issued to the Commission, this question is being examined at present with regard to the commercial information included in the response. Subject to any required redaction of commercially sensitive information, it is my intention to publish it as soon as possible. I can, however, confirm that in addition to summarising the actions undertaken since the judgement was delivered, the response of 26 April emphasises the Irish Government's assurance that the judgement of the European Court of Justice will be addressed as quickly as possible and notes that Irish officials will update the Commission on a quarterly basis in relation to progress, with a commitment to the immediate notification to the Commission should any obstacles to progress arise.
