Insurance People who take out dental insurance policies in the future will be able to claim tax relief on the premiums they pay, it was announced in the Budget.
The move comes ahead of plans by a US company, Delta Dental Corporation, to link up with the VHI to offer Irish consumers the opportunity to buy dental insurance policies for the first time next year.
The Minister for Finance, Mr McCreevy said tax relief would be provided at the standard rate for "all insurance premia in relation to non-routine dental care".
"This will encourage dental insurance providers to enter the Irish market to meet the demand for such cover," he said.
The scheme will operate in a similar fashion to the manner in which holders of private health insurance have been able for years to avail of tax relief on their premia.
The VHI last night welcomed the move.
The Minister for Health Mr Martin said it would take pressure off the public sector, particularly in the area of orthodontics.
In a separate development, while there has been no extension of medical card eligibility in the Budget, Mr Martin has issued a directive to all health boards warning them to ensure social welfare increases announced yesterday should have no bearing on medical card eligibility. This means if the increase in social welfare entitlements puts a recipient above the threshold for medical card eligibility, their card should not be withdrawn.
Also in the Budget, it was announced that capital development funding in future will be allocated on a multi-annual basis for five-year periods, which will ensure projects that are started will continue to be funded in subsequent years. Health will get €2.7 billion between now and 2008 under this framework, an average of €540 million a year.
Last night the Fine Gael health spokeswoman Ms Olivia Mitchell said she would like to know how the Minister for Health intends to fund the recommendations in the Hanly report on hospital reorganisation, when the health capital funding for 2004 is less than this year's allocation.
"There are no health benefits in this Budget. People will still be lying on trolleys in A&Es, it will not reduce waiting lists, and there will still be no major reforms," she claimed.
Labour's health spokeswoman Ms Liz McManus said not one cent extra had been allocated to the hospital and general health service. "Minister McCreevy in his wisdom has decided that our overcrowded, understaffed and overstretched hospitals and health service is already adequately funded. It is obvious that he has not had to wait for hours on end, maybe even days on a trolley in some drafty hospital corridor," she said.
