I thank the Ceann Comhairle for allowing me to raise this important issue and the Minister of State at the Department of the Environment and Local Government, Deputy Dan Wallace for being in the House at this late hour.
The increase is general insurance is very serious, whether it is for cars, lorries, homes or anything else. The issue to which I wish to refer is insurance for hackney drivers. A few weeks ago I was advised of a hackney operator whose insurance for third party, fire and theft on a car worth £6,500 was £1,900 in 2000 but increased to £3,300 this year. He is now waiting to renew his other insurance. Yesterday another hackney operator gave me renewal notices for his minibuses for 2001, the cost was well over £9,000 while it was well under £4,000 last year. The cost of insurance for another car, with a different company, increased from £1,150 to £4,850 in two years. He was offered an instalment plan with interest of 17%.
Can any business carry this level of increase? Can this House stand idly by and watch as hackney operators are forced out of business. The car with almost £5,000 in insurance costs would have to travel 11,000 miles to pay for that insurance alone. I have received a copy of an explanation from one insurance company which reads:
Unfortunately, due to the unprecedented rise in claims costs, motor insurance premiums across the board will increase this year. Our Bus & Coach Insurance Programme is no exception and I regret that we have had to impose a "claims factor" loading on all of our clients.
The increase in traffic. the appallingly low standards of driving, and the inflation in wages, medical and legal costs have combined to produce the worst results in the motor industry for some time. We aim to reduce this increase over the next three years through your good management, continued loyalty to the programme, driver training at advanced level and major group discount packages – all to be introduced during 2001.
Unfortunately, and at this time, our premium reflects these increases. I do hope you understand the position and our obligation to always protect your interests through the provision of a strong, solvent and reliable Bus & Coach Insurance Programme.
Has the Minister made any inquiries as to why there are increases such as that from £1,100 to £5,000 in two years? Have insurance companies got a free hand to charge what they like? Has the Minister had any meetings with them? I hope the long awaited Road Traffic Bill, 2001, which is currently before the House, will improve driving standards. The Government must give some immediate support, especially in rural areas where there is no alternative transport.
When the aviation industry was affected following 11 September, special arrangements were made. There is no doubt the events of 11 September had some influence on insurance pre miums. Some support or intervention with the insurance companies must happen immediately if the hackney industry is to survive, especially in Border areas. Already there are quite a few cars working there and I question whether they are all working under the same regulations, or if the Garda Síochána are fully implementing the rules they are supposed to oversee. The hackney industry has increased in size in recent years since new drink-driving regulations were introduced. The industry provides a good service at all hours of day and night. The availability of a good hackney service is vital to ensure that young lives are saved. If the service is not available more drivers may take chances under the influence of alcohol and we have all seen the results of that.
Emergency legislation is before the House to pay an insurance increase for Aer Lingus. Can the Minister do the same for hackneys? Otherwise even more cars will give a service without proper insurance and operate under ordinary private insurance without hackney plates. Insurance claims have cost more in legal terms than compensation paid. Urgent action is required.