Minister for Health Mary Harney last night welcomed confirmation by the Quinn Group that it is going ahead with the takeover of Bupa Ireland.
The move was also welcomed by the Opposition parties who cautioned, however, that the long-term future of the Irish health insurance market was uncertain.
Ms Harney said the Government is determined to achieve a competitive health insurance market and believes there is significant potential for reform of the market.
She would address this on the basis of reports from the Competition Authority, the Health Insurance Authority, as well as the forthcoming Market Review Group, chaired by Colm Barrington.
Fine Gael health spokesman Dr Liam Twomey said a lengthy legal battle on the legislation rushed through by the Government on Wednesday night now seemed to be in prospect. He said the Quinn Group announcement certainly seems to be encouraging news for the Bupa staff in Fermoy and for the 475,000 Bupa subscribers and is to be welcomed.
He said the legislation appears to have brought yet more uncertainty to the health insurance market. He added: "A mishandled process on the part of the Government has undermined the health insurance market. This has led to a series of high profile announcements, media battles and claim and counterclaim regarding the future of the health insurance market."
Labour Party health spokeswoman Liz McManus said she was "very relieved" at the Quinn Group decision to go through with the Bupa deal. "I am delighted that Seán Quinn is sticking to his commitment to the staff of Bupa but I don't by any means think this case is closed."
She predicted the Quinn Group will put pressure on the Government in relation to health insurance reform.
Minister for Justice Michael McDowell denied in the Dáil yesterday there had been a "sleight of hand" in the rushing through of emergency legislation that closed a loophole in health insurance legislation. The legislation, the Health Insurance (Amendment) Bill 2007, which was rushed throught the Dáil and Seanad on Wednesday night, was signed into law by President Mary McAleese yesterday.
Labour Party leader Pat Rabbitte complained in the Dáil about the late introduction of the Bill on the chamber's Order of Business on Wednesday and claimed the Order of Business yesterday "was fraudulent".
Mr McDowell said the Government only made a decision to proceed with the legislation on Wednesday afternoon and rejected the suggestion that there was any fraudulence or sleight of hand involved.