In his Budget Statement last week the Minister for Finance announced that he was cutting tax relief on what he termed "gold-plated" insurance policies, while not affecting the majority of individuals who avail of more standard levels of medical cover. Later that evening the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, contradicted the Minister for Finance when he confirmed that the policy change would affect approximately 500,000 insurance holders. In the hours after that the real and full story emerged, that the removal of the tax credits will impact on people with a basic level of health insurance. Contrary to what the Minister for Finance said, approximately 1.2 million people will be affected by this decision. The VHI has confirmed that only 10 of its 93 policies will not be affected. Insurance Ireland has said that the minimal additional cost will be €100 to basic policyholders and up to €360 per family.

This will result in more families with children, and particularly older people, bearing a heavy burden for private health insurance. It will lead to more people leaving private health insurance. It is instructive that approximately 134,000 people under the age of 60 left private health insurance between 2011 and 2012, while approximately 23,000 over 60 have joined. We need balance in the market and this is not sustainable. "The centre cannot hold" in health insurance. It is becoming unaffordable for many families and for many senior citizens.

Will the Taoiseach accept that the Budget Statement by the Minister for Finance was misleading and false because this measure will affect the majority of those who have health insurance? Will he accept that it will be a particular burden on older people and on families with children, given the cost involved? Will the Taoiseach indicate to the House that he will use the forthcoming Finance Bill to change this measure to ensure that the burden that is about to fall on people will not fall?

I do not accept that. The position as outlined is that the design and focus of this budget is to get this country out of the bailout programme which it has been in for some time. It is also designed to get our country back working through a range of measures. The objective of the Minister for Health, as I have outlined on many occasions, is to reform the current health system, to bring about a single tier health service in which access to health care is based on need and not on ability to pay. The Government is committed to the ongoing sustainability of the health insurance market as part of the transition to the market-based universal health insurance scheme.

Deputy Martin mentioned balance and he took the words "the centre cannot hold" from W.B. Yeats. He did not mention the word "fairness". It is important to understand that while the health insurance companies will comment on the decision of the Government as announced in the budget by the Minister for Finance, it is the Revenue Commissioners, who make individual payments, PRSI number by PRSI number, who have the accurate figures. They say that approximately 50% of people would be affected by these measures.

There are now 259 health plans, which is a recipe for mass confusion about who has what. The tax relief given at source is the second most costly tax expenditure for the Exchequer and is estimated to reach €500 million in 2013. That cost has increased very significantly from 2011, when it cost €404 million, to €448 million last year. That is an increase of 24% in costs over the past two years.

That is because premiums are going up.

Despite that increasing cost the number of insured has fallen by approximately 170,000 over the same period. In the Government's view, taking into account the headline principle of exiting the bailout and moving towards universal health insurance, fairness is the issue. The Government has decided that a subsidy of €200 per adult will be available for all adults across the board who take out private health insurance, and €100 in respect of their children, to a maximum of €600. Every person who takes out private health insurance is entitled to that subsidy from the Government and will get it. That allows people to choose, if they wish, to have more expensive health plans. The relief given applies to everybody across the board. The figures produced for the Department of Finance and for the Minister to bring to Government come from the Revenue Commissioners who pay out the tax relief on a case-by-case basis, and their figures are accurate.

The Taoiseach's response is incredible. He said that he does "not accept that". What does he not accept? Is he holding to the line that this is only for "gold-plated" insurance policies? That is what the Minister for Finance said on budget day, while not affecting the majority of individuals who avail of more standard levels of medical cover. Even by his own admission and by that of the Minister for Jobs, Enterprise and Innovation, the Taoiseach's figures say that 50% plus will be affected. Does the Taoiseach accept that the Budget Statement was clearly and deliberately misleading, to give the false impression that only the "gold-plated" insurance policies would be affected? Insurance policies for families can cover up to six children per family. This will impose a real burden on families.

The Government is ripping the community rating system apart. There is no way that this can hold. If over 100,000 young people leave, and if that continues, there is no way that the Government can sustain the older population who have health insurance and who depend on the packages that health insurance brings to them. There will be more price hikes. The decision, for example, to charge the full amount for private patients using public beds, even though the majority are PAYE workers, will add further price hikes in January, on top of the annual insurance company price hikes. It is unaffordable now and it is becoming unaffordable month after month for thousands of families. That is the point. There is an incoherence at the heart of Government health policy. On the one hand, the Government says it wants universal health insurance, while on the other it drives people out of insurance. This budget measure is regressive and is unfair.

There is no incoherence here. The Government has been very clear about the budget focus on exiting the bailout and on dealing with the right of people not to have any income tax increases as a result.

But this is.

This is a reply to a supplementary question.

It is unlike what Fianna Fáil proposed in its own budget for an increase of €500 million. Fairness is involved here.

Would Deputies remain quiet? I ask Deputy Kelleher to remain quiet.

What the Government has decided to do is-----

I will not ask Deputies a second time. Would Deputies please remain quiet? Will the Taoiseach proceed? We are over time. If Deputies want an answer, they should let the Taoiseach answer. If not, I will call a halt to proceedings.

What the Government has decided to do here is deal with the essence of fairness for every person who takes out private health insurance in order that the Government provides a subsidy in respect of each adult and child up to €600 for every person who takes out private health insurance. Of the 259 plans, many are not available. It also means that every person who wishes to take out private health insurance has the choice. They can have a cheaper or more expensive private health insurance scheme if they wish. Fianna Fáil seems to be saying that we should continue subsidising to a higher level those who make the choice to take out more expensive health insurance schemes. What we have done here is very fair in that every person who takes out private health insurance is subsidised to the limit by the Government. If they wish to take out more expensive private health insurance after that, that is their choice.

I want to make it quite clear that when I call a Deputy, like a Leader, I expect silence and I expect silence for the reply. No shouting from the back benches.