16 Mr. Farrelly asked the Minister for Health and Children the date the Voluntary Health Insurance board applied to his Department for sanction to increase charges; if his attention has been drawn to the fact that the VHI is not prepared to accept the approval of new nursing homes here until after the year 2002; his views on whether this is a contradiction to the Government's policy on tax incentives as the developers of these new nursing homes are providing badly needed beds for our elderly; his further views on whether people who need convalescent care are being excluded from any of these new nursing homes; and if he will make a statement on the matter. [25491/00]

17 Mr. Gilmore asked the Minister for Health and Children if he has received a warning from the VHI that it may have to limit its services due to financial difficulties; the steps he will take to ensure the maintenance of full services; if he will increase VHI premia; and if he will make a statement on the matter. [28923/00]

66 Mr. D'Arcy asked the Minister for Health and Children if he has sanctioned an increase in Voluntary Health Insurance contributions; and if he will make a statement on the matter. [28946/00]

I propose to take Questions Nos. 16, 17 and 66 together.

The VHI informed my Department on 31 October 2000 of its proposal to increase premiums by 5.5% with effect from 1 January 2001.

As part of this process, the VHI chairman has brought to my attention the broad range of considerations which inform decisions on the revision of premium charges, such as increasing consumption of healthcare by members, new technologies and pay awards. Other factors bearing on this matter include projected financial performance, commercial considerations relating to the board's business planning, and cost control. The chairman has also made me aware of the need for a premium increase in the context of the board being in a position to continue to offer full and comprehensive levels of service to members.

I have informed VHI that I wish to defer a final decision on the increase as proposed and I have suggested that discussions on the matter be entered into between VHI management and my Department. Early discussions are planned with a view to moving forward further consideration of the board's requirements for a premium increase.

The position in relation to nursing home development vis-à-vis private health insurance, is that long-term nursing care, which incorporates most of the business of nursing homes, does not come within the ambit of such insurance. Private health insurance does, however, provide cover in respect of the cost of convalescent care arising from hospital in-patient treatment.