Labour accuses Harney of plotting to privatise VHI

The Labour Party is accusing Minister for Health Mary Harney of plotting to privatise the VHI following her decision to cut risk equalisation payments by 20%.

Ms Harney is due to bring the proposal before the Dáil today.

The VHI has already said that it will be forced to increase premiums if the Government cuts the amount of money it can claim from rival companies as compensation for its older and less profitable client base.

Ms Harney has insisted that the reduction will not cause any harm to the VHI and says it amounts to just €6 per member.

Labour TD Liz McManus, however, says her party will oppose the measure in the Dáil.

"I think there is an agenda here to privatise VHI," she says.

"It suits the minister and her ideology and I have great concerns about the way that this is being rammed through the Dáil without proper preparation, without proper debate.

"I think it shows yet again the arrogance of the Government that feels it doesn't have to be accountable to anybody."

Speaking in the House today, Socialist Party TD Joe Higgins accused the PDs of introducing the measure specifically to benefit the Quinn Group, which bought out BUPA earlier this year.

Mr Higgins said the PDs were helping their rich friends get even richer, while forcing ordinary people to pay more for health insurance.