asked the Minister for Industry and Commerce if he is aware of the escalating costs of employers and public liability insurance; the effects these costs are having on production and employment levels; and if he will outline the programme of measures he proposes to deal with the problem.
Ceisteanna—Questions. Oral Answers. - Employers and Public Liability Insurance.
27.
I am aware of the effect that the cost of employers and public liability insurance can have on production and employment levels. The root cause of high insurance premiums is the high cost of claims. Concerted action is being taken to bring claims cost under control. The Deputy will be aware that the Minister for Justice has introduced a Bill to abolish the jury award system in cases of personal injuries and that the Minister for Labour has established a new board for occupational safety and health and will shortly introduce legislation to promote occupational safety. In addition, an inter-departmental committee, chaired by my Department, have been established to bring forward specific recommendations to bring about a real reduction in the cost of employers and public liability insurance.
I am confident that all of these measures will go a long way towards at least stabilising the cost of insurance. I must, however, emphasise that the people with the greatest opportunity to reduce premiums are employers and employees themselves, by demonstrating a greater awareness of the importance of safety in the workplace. A reduction in the level of industrial accidents is guaranteed to reduce the cost of employers and public liability insurance as the level of accidents determines the level of claims paid which, in turn, directly determines the level of premium which must be charged.
Is the Minister in a position to tell me the percentage of manufacturing pay-roll which is involved in the payment of employers' liability insurance?
No, we do not have accurate figures on that. It varies widely between different industries and it is not possible to give any sort of meaningful average.
For the Minister's benefit, the figure is about 3 per cent of manufacturing payroll and our competitors have only to pay 1 per cent. Therefore there is a 2 per cent disadvantage for a start. Is the Minister aware that in the heavy industries sector premiums in PL and EL for Irish manufacturers run anywhere from five times the average for the United Kingdom and other EC countries to 15 times? Does he recognise that that is causing great difficulties as a basic primary cost to the manufacturing industry?
I am aware of the problems of high employers' and public liability. The figure quoted by the Deputy of 3 per cent average is higher than one I have heard quoted by the CII, which was 2½ per cent.
But the Minister did not have any figure two minutes ago.
The reason for the discrepancy between the figure for Irish manufacturing industry and our competitors, and particularly with regard to the United Kingdom, stems from the high level of claims we are now experiencing. For the period from 1979 to 1985 the number of claims increased by 35 per cent, despite a stable level of employment. The cost of claims between 1981 and 1985 doubled from £46 million to £96½million. The problems we have here are due to a high percentage of claims and also the fact that pay levels here are automatically three to four times those of the United Kingdom. However, I am satisfied that we are taking steps, as I have outlined in my reply, on the question of eliminating the jury system and improving safety in the workplace.
I am not convinced, as the Minister appears to be, that the elimination of the jury system will have the beneficial effects of which he speaks. May I take this opportunity to ask if the Courts Bill to do away with juries will be proceeded with between now and Christmas?
The Deputy will have to take that issue up with the Whips.
It is now at Committee Stage and the Minister is involved. Surely he can tell if it will be proceeded with before Christmas?
I certainly hope so.
That is a forlorn hope at this stage, considering the deal done with the Bar Council.