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Dáil Éireann debate -
Wednesday, 4 May 1988

Vol. 380 No. 2

Courts Bill, 1986: Instruction to Committee.

I move:

That it to be an instruction to the Committee on the Courts Bill, 1986, that it has power to make provision in the Bill for the making of regulations by the Minister for Justice specifying the maximum number of counsel in respect of whom costs may be allowed on taxation by a Taxing Master, for payment by another party or other parties to an action in relation to which section 1 (1) of the Bill applies, or a question of fact or an issue arising in such an action, or an appeal from a decision in such an action or on such a question or issue.

The need for the instruction arises under the provisions of Order 99 of Standing Orders. The reason is that the provision contemplated by official amendment No. 5 which proposes to insert a new section 4 in the Bill giving the Minister for Justice the power to make regulations concerning the fees of counsel which may be recovered on taxation, strictly speaking, was not contemplated at the time the Bill was initiated or discussed on Second Stage. Consequently, it could be argued that the particular amendment is outside the general scope of the Bill, notwithstanding the fact that this point was discussed at considerable length on Second Stage. The procedure by way of an instruction to the committee is designed to get over this difficulty. It is purely a procedural measure which the draughtsman advised was necessary in the circumstances. It has also to be considered in conjunction with the proposed official amendment to the long title of the Bill.

The reason for this technical amendment is, as I stated, to make clear and certain the step which is being taken in adding this Government amendment to the Bill. The Courts Bill of 1986 was a more limited measure and the Government felt that much more was needed to deal with the very serious problem of legal costs. We promised, when in Opposition, to bring in special legislation to eliminate the very serious over-representation in High Court personal injury cases and we are doing this in the proposed amendment to this Bill. As Deputies will be aware, it requires three barristers and a solicitor on each side to deal with a case which may be valued at only £15,000, that is, eight lawyers in all.

It might not be worth a penny if you did not have all the lawyers.

The total costs could exceed the award. Two senior counsel earning anything up to £1,000 each to appear, a junior earning £600 and a large instructions fee charged by each solicitor of, say, £3,000, could amount to about £6,000 on each side.

On a £15,000 case? Which country is that in?

Too many cases that should be heard in the Circuit Court are set down in the High Court to come before a jury. I appreciate the difficulties that the legal profession have with this section, as we have seen at the outset of today's business.

The figures are crazy.

Nevertheless, the Government are committed to a package which will have the effect of reducing the cost of insurance, for employers, for industry and business and for the owners of cars in the motor insurance area. Indeed, Deputies will be interested to know that it is estimated by the industry that the abolition of the three counsel rule to which this technical arrangement refers will result in savings in the order of 10 per cent. That is their view and their commitment. They see the abolition of juries as resulting in even greater savings.

The Government are very concerned that these measures should result in definite savings. Consequently, they have had a great deal of discussion with the people involved to ensure that actual savings would accrue. Some companies, in anticipation of this package of measures, together with other legislation which the Government are bringing forward, are, in anticipation, promising a reduction of 20 per cent in their fees for insurance. Others are talking of the order of 8 per cent to 11 per cent and are already, for the next year, giving quotations of that order. Deputies will also be aware that young drivers particularly, stand to gain under the measures the Government are introducing. The insurance federation have promised a reduction of between 10 per cent and 20 per cent for young drivers who for two years have been named on their parents' insurance, and are accident free. Parents know that this will be of particular advantage because of the high cost of insurance for young people. This high cost is a great source of worry and difficulty for parents generally and for young people who have committed themselves to that scheme under the aegis of the insurance federation for young drivers. Consequently, the package the Government want to introduce and are bringing forward is one that is of great practical value. There is general agreement that the cost of insurance here is too high and has been too high for far too long.

Many people have direct experience of the high cost of motor insurance. It has been prohibitively high for some, particularly people under 25 years. One result has been the level of insurance evasion and the scandal of uninsured driving. There have been other serious but sometimes less obvious effects in the area of employers' liability and public liability insurance. Many industrialists have protested that the cost of employers' liability insurance constitutes an increasing element in payroll costs and has reached levels where they have become a disincentive to employment. The impact of employer and public liability insurance costs are having serious economic effects in key sectors, such as tourism, in some cases causing closure of ventures due to the failure to obtain insurance cover at any cost. This is the background to the package of proposals on insurance costs which the Government published in conjuction with the Programme for National Recovery.

There are no easy solutions to the problem of high insurance costs. The levels of insurance premiums are related to the number and level of claims, the underwriting losses of insurers and the legal expenses arising in conjunction with court proceedings. The remedy calls for action over a wide range of areas, including radical measures in the area of occupational injuries and safety at work, further measures to tackle the problems of uninsured, drunken and dangerous driving, improvement in law enforcement and reforms of the legal system. These measures require action by various Minister including the Minister for Justice, Labour, Environment and Industry and Commerce.

The most important measure the Government are implementing to improve the legal framework for dealing with personal fatal injury is the abolition of civil juries to decide these cases in the High Court. This is not a step that the Government are taking lightly. It was decided to proceed with this measure only after careful and long consideration and as part of a total package, hence the technical amendment we are putting to the House at this stage. The Government are convinced that the abolition of juries in those cases will lead to more consistent and predictible awards which will provide a more reliable framework for insurers to estimate outstanding claims and thus reduce their costs. Earlier settlement of cases and more consistent and predictible out of court settlements will facilitate better scheduling of court business, shorter trials, lower legal costs and in particular much less justification for the engagement of more than one counsel in a case and more successful challenges to spurious claims. I accept that the abolition of juries is not a panacea, but the withdrawal to the right of a jury trial for these cases is justified as an important step in controlling the cost of insurance claims. Together with the other measures the Government have announced, the abolition of civil juries will benefit the public, through lower insurance costs and easier access to insurance cover. The Irish Insurance Federation have assured the Minister for Industry and Commerce that:

When the Courts Bill 1986 is enacted by the Dáil the IIF members will agree to introduce a special no claims bonus for drivers who have been named on one of the existing motor insurance claim policies subject to the following conditions: hold a full driving licence for at least one year, have been named on the policy for at least two years and not have had any claim for driving, or convictions. Subject to meeting the foregoing conditions companies will grant the person involved a special discount equivalent to at least. 1 per cent on their normal bonus scale which in practice will represent a discount of between 10 per cent and 20 per cent of the premium which would otherwise be payable.

This is a very real and immediate benefit which will be available to young drivers later this year. In addition to this a number of insurance companies have already introduced more competitive rates for young drivers in anticipation of the more favourable environment which enactment of the Courts Bill will bring. One company in particular has capped the rates for young drivers and is providing cover at £850 for young drivers in the Dublin area and at £700 elsewhere. If all of the market followed this lead there would be more competition and young drivers would benefit enormously.

In relation to the measure the Government are taking in introducing this important amendment to the Bill, it is not sufficient just to abolish juries in civil cases. It requires a package which involves the juries, the number of legal counsel, and the pre-trial procedures on which the Government are preparing legislation separately.

What about free legal aid?

The package involves the improvement of pre-trial procedures, the tackling of other specialists costs which can be very high, for instance, medical costs and engineers costs, and the provision of safety in industry which is an important contributory factor to reducing costs. The insurance industry are committed to reducing insurance costs and it is only on this basis that the Government are proceeding with the whole package. That will have very important implications for industry generally, for the tourist industry, for hotels, for clubs, for community associations and for motoring generally. With that in mind I would recommend the adoption of this technical amendment.

It is ironic that the Minister for Social Welfare, Deputy Woods, was sent in here to take this Bill today because I spent some time reading the Dáil report of 28 May 1986, when Deputy Woods spent one and a half hours in this Chamber giving numerous reasons for not abolishing juries in personal injury claims. Now the Minister has a hard neck to come in here and tell us all the reasons for changing our minds. This must be the greatest U-turn or somersault of this century. It will be very amusing as we go through the different sections during the day. We will listen to the Minister's excuses as to why we should accept the Government's proposals.

In relation to this technical amendment, it is to enable the Government to introduce a very major change in this legislation, a very fundamental change. This amendment should have been for a future Courts Bill, where a long Second Stage debate might have taken place on the principle involved. I have to agree with some of the points made by Deputy Woods in his speech on 28 May 1986 on this issue. In that speech he covered very adequately the points I wish to make now on this issue. I do not think there is anybody who doubts that there is a need for change and the Bar Council have recognised this fact. There are cases where it is very hard to justify having two senior counsel but equally there are cases where this could very easily be justified and here I am speaking in terms of a plaintiff who is seeking damages in respect of negligence on the part of the medical profession. A case could go on for some time and the plaintiff may need expert assistance from a member of the Bar who specialises in this area. A case could also be delayed for a number of days. As the Minister, Deputy Woods, said on 28 May, the list system as it stands at the present time causes grave difficulties in proper representation for the average man on the street in our courts.

The sufferer in all of these cases will be the average punter on the street. There is no doubt that the fact that some members of the Bar operate in some cases on a no foal no fee basis helps the average person on the street and we will have to take this into account. Rather than coming into this House and using the heavy arm of the law to impose restrictions on the Law Library or the Bar Council, it would be far more realistic to give the Bar Council the opportunity to make appropriate changes. If at the end of the day we were not happy that the Bar Council were behaving in a rational and reasonable way we could then introduce an appropriate amendment or a further Courts Bill but to fundamentally change the Courts Bill, 1986, without giving this House an opportunity of a Second Stage debate is not right or proper.

I wish to place on the record our objections on this side of the House to such a procedure. The fact that we might accept this technical motion does not in any way indicate our acceptance of the Minister's amendment. For that reason we have tabled an amendment to the Minister's amendment which, in effect, would give the Bar Council an opportunity to introduce their own rules and regulations in this area.

I see Deputy Brennan, Minister of State at the Department of Industry and Commerce, present in the House and I can recall reading that he met the Bar Council. After that meeting he issued a statement in which he said that, if the Bar Council did not change their own rules on a voluntary basis, the Government would be forced to introduce legislation. That is a breach of good faith. He is now sitting beside the Minister for Social Welfare and saying in effect that what he said is totally irrelevant because he is not even giving the Bar Council an opportunity to introduce their own changes in their own rules and regulations but rather he is suggesting a change in the law. I think this is a breach of good faith between the members of the Bar Council he met on that occasion and himself.

They have had seven months.

The Bar Council have also met with the Restrictive Practices Commission and from the information which I have received I understand that the Bar Council are prepared to introduce the necessary changes in this area if and when this legislation, as originally presented, is passed by both Houses of the Oireachtas. We are not being given an opportunity to examine in depth the consequences of this change, not just the loss in earnings for members of the Law Library but for the proper representation of the ordinary individual who has to bring his or her case into court and get proper representation from qualified persons.

I am not at all happy about giving the Minister power to make regulations which can be annulled within 21 days according to the amendment. As everybody on the Opposition benches knows, such a provision is incapable of being brought into operation because the Government control whether or not Government time will be made available to annual a particular order laid before both Houses. In effect, this will give the Minister complete control over what rules and regulations he may impose in the future. I do not think this is a satisfactory or a proper way of doing business. Fine Gael will not accept it and they will not accept any changes in this area until the Bar Council are first of all given the opportunity to make their own changes. If we are not happy about these, we want to see the proposals the Minister may have in mind and we want to see those proposals confirmed by both Houses of the Oireachtas by way of a positive motion.

Effectively, that is the amendment which I have tabled on behalf of my party and we will deal with it when we come to deal with the section of the Bill. In the meantime, we will deal with this technical motion and I want to place on record our total dissatisfaction with the way in which the Government have gone about changing this legislation in a very fundamental way. It is not suitable to introduce an amendment in this way without giving the House the opportunity to debate such an important issue. I would like to know if the plaintiff is going to suffer in cases where he or she only has the benefit of the services of one senior counsel? Will the same apply to the defendant?

For argument's sake, will the insurance companies involved be restricted to one senior counsel, or will it be the case that the average person on the street will be restricted in their representation but that the insurance companies will be able to wheel in up to ten senior counsel and ten experts if they so wish to defeat the ordinary person who may have a very justifiable case, a case which could be very intricate and in which the person may need as much assistance as one can possible get? What will happen where a particular counsel representing a plaintiff finds that he is stuck because of a case lasting for a longer period than he anticipated and as a result somebody else is going to suffer.

These are issues which must be thrashed out in great detail and it is not suitable to introduce a technical motion which would allow a fundamental change in legislation which has already completed Second Stage. Certainly, it is not suitable for the Government to do so considering the stand they took when in Opposition when not alone did they oppose the implementation of what is now being proposed by way of this amendment but also the Bill itself. They gave numerous reasons why juries should not be abolished. All one needs to do is to read the one-and-a-half hour speech which this Minister made——

The Bill was not opposed.

Anybody who reads his speech which lasted one-and-a-half hours will certainly get the impression that Fianna Fáil were not in favour of the abolition of juries. Can the Minister in his reply tell us whether the Government have endeavoured to bring in the various changes which he suggested on Second Stage and whether these changes have worked? The Government now feel it necessary to proceed with this legislation. They owe it to us and to the public to say why they are now proceeding with this legislation which they were not in agreement with when they were on this side of the House.

The Minister pointed out the need to do something about the list system and perhaps in his reply he might tell us what, if anything, has been done about the list system in our courts. He also pointed out that there was a need for more High Court judges and I would like him to tell us how many judges have been appointed to the High Court since Fianna Fáil took office. The Minister, Deputy Woods, pointed out the need for juries to decide the degree of negligence or liability. Has he considered that aspect and has he found it to be unworkable and as a result is now proceeding with this legislation? He told us we should allow the judge to give guidelines to a jury on the level of general damages. Perhaps he might tell us in his reply what has happened in that area that has not worked and as a result we now have to proceed with this legislation. The Minister also pointed out that we should raise the jurisdiction of the Circuit Court from its present limit of £15,000 to £25,000 or £30,000 and we should retain the jury trial for the more serious matters.

We have an amendment down on that matter.

I would like to know what examination has taken place in the Department of Justice on this issue since Fianna Fáil have come to Government and have they found some reason why they cannot proceed along the lines they suggested when in Opposition?

The Minister said we should reduce medical costs. In the Official Report of 28 May 1986, column 524, he gave a very good example as to why we should consider the need for a change in medical costs. He quoted a case and said:

...these can account for the major part of an award. For example, in a High Court case an award of £181,000 was made which included £119,000, or almost two-thirds, for past and future hospital expenses.

I would like to know what the Government have done since coming to office to control that situation.

Closed hospitals.

That is another point.

I hesitate to interrupt the Deputy——

(Interruptions.)

Order, I merely wish to bring to the notice of the House the time factor involved in respect of dealing with this motion which must be brought to a conclusion not later than 12 noon.

I have been speaking for ten minutes and I have been very careful about the time.

I appreciate that, Deputy, I am merely bringing it to the notice of the House again.

When Deputy Woods was spokesman on Justice in Opposition — unfortunately he is now on the other side of the House — he said that we should reduce specialist costs. For anybody who is interested, that is quoted in the Official Report, Volume 367, column 526. It makes very interesting reading. A lot of research was done by Deputy Woods on that matter. Having read his contribution I was nearly convinced that there is a reason why this Bill should not proceed. I was totally confused while listening to Deputy Woods this morning tell us the opposite reasons why we should proceed not alone with the Bill but with a major amendment on which we had no debate on Second Stage.

The Minister told us there is a need to eliminate the cost of uninsured drivers, something with which we would all agree. Perhaps his colleague, Deputy Séamus Brennan, Minister of State at the Department of Industry and Commerce, could give him some information as to what has happened in that area. The Minister said that steps should be taken to reduce the number of accidents and to enforce the law. That is something on which the Department of Justice could certainly give information. I would like to know has anything happened in that area. Has the number of road accidents been reduced and how have the Government fared in the past 13 months with enforcing the law in relation to the Road Traffic Acts?

At present the Garda are in the prisons so it is difficult to enforce the law.

The Minister made a very good point when he said that juries cost very little. He said the only thing they cost is the price of a lunch. In fairness to this side of the House and to the public——

Does the Deputy agree that is a good point?

——who had the benefit of Deputy Woods's views when he was in Opposition, before he proceeds with this legislation as it was presented in 1986, he owes it to everyone of us to explain in detail the reasons he personally — I do not wish to personalise this matter — representing the Government, thinks we should change our minds. He was very persuasive on 28 May 1986. I would like to know the reasons — and I am sure the Minister will give them with conviction — why he has changed his mind. I would like him to convince us that, as a result of being in Government for 13 months, we should now change our minds and follow the path that he was following when in Opposition. I also want the Minister to explain in depth why it was necessary to have a breach of good faith for the members of the Bar Council and why Deputy Séamus Brennan, as Minister of State at the Department of Industry and Commerce, found it fit to issue a statement after meeting with the Bar Council in which he said that unless the Bar Council got their act together the Government would have to change the law to force them to do it. My understanding is that the Bar Council are prepared to make changes and will do so if and when this legislation has been passed and that provisions are there for this change. I want to know why this House should give the Government a blank cheque to write whatever regulations they so wish in this area without the House having an opportunity of seeing those regulations and debating them in full. I am probably one of the few non-legal people here this morning but I am not here to defend any vested interest group. I am here to see that the average person gets a fair deal out of all these changes.

Many statements have been made that insurance costs will be reduced if and when juries are abolished. I am in the insurance business and I know that insurance costs have been reduced in the last 12 months, particularly in the area of public and employer's liability. The reduction in insurance costs has not come about as a result of the abolition of juries, because that has not happened yet. I want to know whether the average person can look forward to a further reduction in insurance rates if and when this legislation is passed. I equally want to know whether the rights of the ordinary individual will be protected if we agree to the amendment for the abolition of two senior counsel. I want to know the reasons why we should do that when insurance companies or the defendants who could be very wealthy individuals can wheel in as many senior counsel and experts as they wish and the average punter will only have the opportunity of receiving costs for one senior counsel.

There are a number of genuine answers to be given and I want the Minister to do so this morning and to convince us that the road the Government are now taking is the right road. I doubt very much if it is. I, on behalf of my party, will not accept the amendment the Minister has put forward in this regard and will be pressing our own amendment which is reasonable and fair. It gives the Bar Council the opportunity of setting their own rules and if they do not do so, then the Minister can move in and make regulations or an order which will have to be confirmed by this House. The House will then have the opportunity of debating that order before it is passed. I recognise that other people want to speak. I will come back to this issue later in the debate.

I will be as brief as I possibly can on this matter in view of the fact that there is a guillotine on this debate, which I regret. It is a pity that we are in this situation. I also regret that the Minister for Justice is not here because clearly, from the type of opening statement that was made by the Minister for Social Welfare, we are going to have an unsatisfactory debate. It is extraordinary that anyone who has any self-respect would have the gall to come in here and stand on his head on virtually everything that he said on this Bill less than two years earlier. Unfortunately that is not new in this House and it is particularly not new in respect of many policies in more recent times. It is a bit sickening but it is something that one has to live with if the individual himself feels that he can live with it.

I live very happily with myself.

This measure is not as extensive as the Minister of Social Welfare would suggest because it applies, in fact, only to taxed costs.

On a point of order, I should like to make it clear that the Minister for Justice, as the Deputy will be aware, is at a meeting of the Anglo-Irish Conference today. It is important that I should keep the record straight in regard to that.

He knew that when the Bill was ordered for debate in the House.

We asked for a deferral of the debate and he would not agree to it.

The motion which is necessary in order to allow amendment No. 8 refers only to taxed party or parties costs. The amendment does not refer to anything else although the Minister for Social Welfare sought to give the impression that it was a general rule. That is not so. It applies only to taxed party or parties costs in respect of actions coming within section 1 (1). In other words, personal injury actions that were formerly tried before a jury. That is a much smaller quantum of cases than the Minister for Social Welfare seeks to give the impression is the position, no doubt, inadvertently because he does not know the ins and outs of the matter.

It seems to me that the amendment to the long Title, No. 13, is also erroneous because it purports to insert the words, "provide for the regulation of the number of counsel appearing in certain actions and", but it does no such thing. It makes no restriction, as Deputy Barrett pointed out, on the number of counsel. One could have ten counsel if one wanted. It simply says that in a contested case the party or parties costs are being taxed on a limited number of counsel. However, that does not prevent either party to that action having five counsel if they wish.

Providing the party can pay for them.

Precisely. The amendment to the long Title is erroneous because it does not attempt to cover the point made in the amendment. There is a related matter to this in amendment No. 4 to ministerial amendment No. 1. As other Members said, this whole thing is a total mess and it is a pity that it is being done in this way. Amendment No. 4 to ministerial amendment No. 1 is necessary for the reason that on the passage of the Bill, as now proposed to be amended by the Minister, it will not be possible to have any of these cases heard outside of Dublin. At the moment thousands of jury cases are heard every year in six or seven venues outside Dublin. There is a special provision in Order 36 of the Rules of the Superior Courts of 1986 to enable that to be done. I will read the provision in Order 36.2 (b) which is as follows:

In the case of any proceedings which the parties are entitled as of right to have tried with a jury, [this is what we are talking about here] notice of trial may be served for any of the following venues — Cork, Limerick, Galway, Sligo, Dundalk, Kilkenny — without prior application to the Court, and the matter may be set down for trial at such venue.

It is only if one is entitled as of right to have ones case heard by a jury in a personal injury action that one can have the case heard at the six venues outside Dublin that I have mentioned. If the Bill goes through without the amendment tabled by Deputy Colley and I, every case in the High Court will have to be heard in Dublin. That is ridiculous. I have brought this matter to the attention of a senior official of the House who said that he has to be guided by the advice of the Department of Justice. They should have a look at this because my attention has been drawn to this defect by a senior member of the superior courts. It seems to me to be absolutely pointless that we will have to go through this nonsense today where we are going to prevent any case of the High Court being heard outside Dublin. Surely that is not the intention of the Government either in their present mood or in their May 1986 mood.

I should like to ask the Government to rectify this and draw to the attention of the Chair the fact that the advice given to the Chair up to now has misunderstood the position, that the consequences will be very serious and that the additional costs of having to bring many litigants and witnesses from Kerry, Sligo, Donegal and elsewhere to Dublin unnecessarily while thousands of such cases have been disposed of around the country up to now is foolish and pointless. If the amendment was being prepared by me I would draw it up much more broadly to enable some form of regulation to be made in the absence of voluntary agreement by the Bar Council. I do not follow Deputy Barrett's reasoning where he said that this should be left to the Bar Council because his own amendment, No. 9, states:

The Minister may by order prescribe rules of practice to be observed by the Bar Counsel [incorrectly spelled] in stipulating the number of counsel appearing...

He seems to think he is giving the Bar Council the right to make their own rules but he is not. The ideal would be that they should but if we are to make statutory rules let us least make the rule wide enough to cover all eventualities and possibilities rather than the extremely narrow proposal that is now contained in amendment No. 8 that will be before us if the motion is passed. The Minister should think in those terms or, at least some Minister should or, effectively, the Department should do so because they are doing all this anyway. In my view they have misunderstood the position. There are no officials in the Department with any experience of practice and it is sometimes hard for them to follow what happens. They make errors that could be avoided. I am not blaming them for that.

The Chair must point out that the Minister is responsible and no aspersions should be cast on civil servants.

I am aware that the Minister is responsible but I was seeking to get to the reality of the matter. Indeed, there is no one more aware than the Minister of who is responsible because in the course of the Second Stage debate on this Bill on 19 June 1986 he commented on the fact that the then Minister for Justice of the Coalition was not present. Deputy Woods was extremely critical of that fact and objected to the Minister of State at then the Department of Tourism, Fisheries and Forestry reading a speech on behalf of the Minister for Justice. Deputy Woods went on for a couple of columns objecting to that procedure — columns 675 to 677, inclusive, of the Official Report. He finished objecting at the end of column 677, to the absence of the Minister for Justice and to the fact that somebody else was reading a speech on his behalf. Deputy Woods described the procedure as follows;

Will the Minister not be in the House today to reply to this Bill?

He answered that question by saying:

This is something of a farce.

How prophetic that was. The opportunity should be taken to clear up these things because of the protracted nature of this whole matter. It has got itself procedurally and from a drafting point of view into a bit of a mess. In the course of Committee Stage, the Minister and his colleague's Department might have a look at it and try to sort it out. There is not really much point in going ahead with it as it is here. It is a mess. It does not achieve what it sets out to achieve. We should achieve that. We should be told what the up-to-date situation is vis-á-vis the Bar Council and whether they are prepared to make voluntary rules in relation to this. If not, a more general statutory power should be taken. Certainly the amendment that is before us is not a general statutory power and it seems to me to be somewhat perverse to take such a limited power as is taken here and not cover the problem in total.

We are going to oppose this motion more in relation to the nature of the way it is being taken than in relation to the content. We object fundamentally to what is being done here by the Minister for Social Welfare. The motion contains matters totally outside the scope of the original Bill. As has been said by previous speakers, it is bad enough that the Minister for Social Welfare had such fundamental objections in principle to the Bill two years ago but now all those objections seem to have vanished into thin air. The Minister is not only pushing the Bill through but he is also determined that additional measures will be incorporated in the Bill today.

Like other speakers, I believe we need to hear from the Minister in the course of the debate today what has taken place and what reasons he now has for supporting the Bill. Granted it was not his brief in the past 13 or 14 months, but he had such strong objections to the proposals in 1986 that I believe he owes it to himself, to his constituents and to the public at large to explain how this conversion has taken place. I hope that, in the course of the afternoon, the Minister will give us some detail as to the reasons he can now speak so convincingly this morning in support of the motion and of the Committee Stage of the Bill.

I believe it is also regrettable that we are not having a Second Stage debate on the Bill because there are now 30 Deputies in the House who have never had an opportunity to discuss the Second Stage of the Bill. In addition, the matter was quite inconclusive in May 1986 when Second Stage had not been concluded. I can only assume that it is in order to take Committee Stage when a Bill has not been concluded within the term of a previous Dáil. Perhaps the Minister would refer to that point in the course of his contribution later.

There are many fundamental questions being rushed through the House. Public confidence in the administration of justice demands that people and ordinary citizens should be involved in the workings of the courts through the jury system. I believe there is respect for the courts among the people. In large measure this is due to the fact that the courts are not administered by judges alone but, in particular, in serious cases, juries participate in the process as the judges of fact.

The situation was spelled out very clearly by Mr. Justice Niall McCarthy of the Supreme Court when he addressed the American Bar Association in Dublin in July 1985. He made cogent arguments for the participation of the citizen in the administration of justice by way of the jury system. It was his view that judges do not have any greater insights or greater ability than 12 fellow citizens when assessing liability or damages in civil cases. It should also be borne in mind that trial by jury in serious cases is an institution of the State. It has been part of the legal system since 1922, and it was retained in the Circuit Court up to the seventies.

The Minister's current proposal is that personal injury actions brought in the High Court before a jury should be abolished. I have looked at the background to this — the attacks on the system over the years. The Irish Insurance Federation fought for a number of years to bring this about. They presented the case that juries make excessive awards and this is reflected in the insurance premiums. At the time of the ICI debacle, consideration was being given by the then Government to this question but no final decisions were taken at that time. With the onset of the ICI problem in the aftermath of the PMPA collapse, there was renewed pressure for the abolition of juries. At the time there was a very blatant and misleading effort to link these commercial disasters with the continued use of juries. There was absolutely no connection. At that time it was patently clear to all that the ICI and PMPA collapses were related to internal mismanagement of both those companies. Nobody can deny this.

However, the Government decided to amend the law by doing away with the right to trial by jury. I was against this decision at all times and I and my Labour colleagues voted against this decision when that proposal was brought forward in Cabinet. The then Attorney General outlined substantial arguments, grounded in principle and in policy, for the retention of juries in these cases. I ask the Minister in due course to inform us whether the present Attorney General has given advice to the Government on the merit and wisdom of proceeding with this Bill at this time.

One of the most distasteful aspects of the Bill before the House is the fact that the decision then made, and which is now being adopted by the present Government, was made at the insistence of the Irish Insurance Federation. It is obviously a pressure group and a lobby group. There was very little public debate on the issue. There was no consultation with bodies with specialist knowledge of the resolution of civil claims. There were no convincing arguments made that the administration of justice would be improved by the abolition of jury trials in such actions. In fact, matters were quite the contrary. The report of the Committee on Court Practice and Procedure, 1965, rejected the abolition of juries in such actions and the MacLiam report, 1982, concluded that juries should be retained, but that judges should be entitled to give some indication to the jury as to what the appropriate level of damages might be in the case being tried.

The Committee of Inquiry into the Insurance Industry which was presided over by Professor Martin O'Donoghue reported in 1976 and recommended that rules should be introduced which would simplify the legal procedures for claiming compensation for personal injury arising out of a motor accident. Serious steps were taken by the industry itself in this regard and, of course, substantial legal changes occurred, such as the increase in the jurisdiction of the District and Circuit Courts in 1981 to £2,000 and £15,000 respectively. The recent revisions of the rules of the superior courts whereby pleadings were tightened up so that full particulars of a claim must be given in a statement of claim and defence at an early stage have also been of great assistance. However, substantial changes could be made in pre-trial procedures which would facilitate the reduction of the number of issues that need to be tried in an action. Even with the abolition of jury trials arising from cases of serious personal injury, these cases would still be complex and difficult and further steps are necessary to avoid delaying such cases and to facilitate the reduction of the issues that have to be tried.

I want to ask the Minister whether they have taken into account the situation which has arisen in Northern Ireland. Last year the use of juries to try cases of personal injury was discontinued in Northern Ireland. This has happened since the original debate in this House. Heretofore a jury of seven had tried both the liability and damages aspect of such cases. I want to ask the Minister whether they have made inquiries to the Northern Authorities in relation to the following questions. Has the level of awards increased or decreased in that jurisdiction? Have premiums been reduced as a result of the discontinued use of juries? Are there any cases in which the Northern Authorities, whether the Judiciary or otherwise, believe that jury trials in such actions should be introduced, as they are entitled to do?

I believe we deserve to have answers to these questions before we proceed today with the proposal before us. As I perceive it, we are abolishing by Statute what has been perceived as a civil right. We are now proposing to abolish it today. We should be all the more cognisant of the fact that the official advice available to previous Governments has been to the effect that juries should not be abolished. Perhaps the Minister would clarify for us the advice given by the present Attorney General in relation to this policy issue. Have the Government given consideration to and taken into account the decisions of the Supreme Court in the case of Synnott v. CIE and Reddy v. Bates wherein rules laid down by the Supreme court had the effect of reducing damages substantially in serious cases?

Have the Cabinet considered these cases and their effects on the awards of damages being made in the courts? What advice did the Taoiseach, the Ministers for Industry and Commerce and Justice receive from the Attorney General in relation to these cases before they took their decision to reverse their previous policy while in Opposition, of opposing the abolition of juries? Are the Government aware that the tendency now in the courts is for juries to make modest awards? In the words of many lawyers, juries have become mean, adopting a much more sceptical attitude to the claims of plaintiffs. Many plaintiffs' claims have been thrown out by juries. Would it not be much better that such claims — if they are to be thrown out — should be thrown out by juries rather than by a judge? Can a citizen whose claim has been thrown out by a jury complain when 12 jurors, his peers, have heard all the evidence in a case and have adjudged against him? If the matter is tried by a judge alone will it not be the case that it will be said that the judge was prejudiced, is not an employees' man, of the bosses' class, or even that he is in cahoots with the lawyers on the other side? These raise very serious questions in relation to the respect of the community for the administration of justice.

Our Judiciary merit the praise of the community and of this House. In large measure they, and they alone, have been responsible for the circumstances obtaining in which the rule of law prevails and in which the judicial process and the legal system in general are accepted. I believe we are about to weaken that by way of the proposal before us today. Perhaps the best argument that can be advanced in favour of the Government's proposal is that trials be shorter. Is it not better that a case take somewhat longer, perhaps a day or two longer, if in the end we are all to be more satisfied, and litigants confident that a fair trial has taken place before their peers in the jury?

The general impression is given to the community at large that this proposal relates exclusively to road accident-type cases, but claims arising from injuries suffered in road accidents constitute a proportion only of those brought in the courts. Thousands of cases are dealt with every year in which plaintiffs bring claims against employers, their doctors or other professional advisers. Is it really appropriate — as will be the case in the future — that a case of, say, professional negligence involving a medical practitioner should be tried by a judge alone? Would the judge tend, albeit unconsciously, to prefer the professional man who had made a once-in-a-lifetime error which might have had devastating consequences for his patient? The answer to that is simple: one excludes the possibility by ensuring it cannot happen and that such a trial is by jury.

We should examine what has been the experience in the United Kingdom, often quoted in support of the move to effect changes in our laws. In this instance it is noteworthy that, in the United Kingdom, they did not abolish juries. What they did there was to confer a discretion on judges whether to allow a jury trial in any given case. Since the decision of the court of appeal in Ward versus James in 1965 — 1: All England Report— judges have exercised their discretion in negligence actions involving personal injuries against the jury system. What has happened there is that a statute did not abolish juries, rather the judges, in exercising the discretion conferred on them by statute, tended not to favour juries. Furthermore, the legal profession in England tended not to ask for juries in such cases anyway.

There is a danger that the proposal before us will not be fully considered here today because we are into a Committee Stage debate. My fear is that no longer will it be possible to get a trial by jury in a case of personal injury involving employer's liability, occupiers liability or in a case of professional negligence. These are the very cases in respect of which it is essential to have a jury involved in the process of the administration of justice. It should be remembered that it is the jury who bring common sense and common or garden, everyday knowledge to such cases. It is noteworthy that this proposal is before the House without any suggestion that steps are being taken by the Government to improve safety in the workplace. For example the question should be posed: when will effect be given to the proposals of the Barrington Committee? When will legislation be introduced giving effect to Mr. Justice Keane's report on the Stardust disaster?

One cannot deal with the cost of insurance in isolation. The Minister referred to a package. I do not see this package as containing even half of what it should contain. The Minister knows well that accidents in the workplace, in many cases, derive from the failure of employers to maintain safe practices and systems of work and that current practices generally here fall far short of what is desired in many industries. This proposal before us will do nothing to increase safety or reduce the cost of insurance in the workplace.

Our amendments and their effects are significant in that they would involve to some degree an acceptance of the thrust of the Bill. What we are seeking to do is retain the right to trial by jury in cases in which a judge considers that, on account of the special circumstances of the case, jury trial would be preferable. At the same time we propose that the jurisdiction of the Circuit Court should be increased in cases of personal injury arising from negligence of £25,000. This would have the effect of confining the jurisdiction of the High Court, in personal injury cases, to those cases where there was a reasonable prospect of damages being recovered in excess of £25,000. Arguably, any restriction on the right to trial by jury, in principle, is wrong. But we are prepared to go some distance with the Government, to concede — as has already been done in cases falling within the jurisdiction of the Circuit Court — that many small cases of personal injury be tried by a judge alone, with the saver that trial by jury may always be sought in a substantial case involving damages in excess of £25,000, or where there are special circumstances rendering trial by jury desirable.

The Bill, as drafted, is designed not to affect any case in which notice of trial has been given before the passage of the Act — section 4 (3). There must be a question raised about the constitutionality of the provisions of this section. I should like the Minister to refer to that matter. The issuing of legal proceedings introduce a justifiable controversy into the domain of the courts. In my understanding of the law it is the position that neither the Legislature nor the Executive may interfere directly in the administration of justice in any particular case or cases. That was the effect of the decision given in the case of Buckley v. Ireland, or the Sinn Féin funds case, as it is known.

The effect of the provisions of the Bill as drafted, is to restrict the right to trial by juries in actions which are already in being and in which litigants have a right to such a trial. It is difficult to see how it is within the competence of the Oireachtas to do this having regard to the provisions of the Constitution and the decision taken in the Buckley case. What the provisions of this Bill seek to do is very similar to what prevailed in the Buckley case, in that it is proposed to intervene in legal proceedings already in being, to direct that those proceedings should be tried in a particular manner without giving the courts — which already have seisin of these cases in which proceedings have been issued — any opportunity to from an opinion on the respective rights of the parties to the actions in a trial by jury.

I believe the argument as to whether a given case could be dealt with more expeditiously has not been well put. I have not heard anything from the Minister this morning to change my view. There are substantial delays experienced in having appeals heard in the Supreme Court, in many cases up to three years; that is, without any impediment being placed in the way of the appeal by either party to the action. Such delay does not derive from any absence of effort on the part of the Supreme Court. Judges and indeed the Chief Justice have done everything possible to facilitate the early hearing of appeals but their numbers dictate that it is not possible to deal with them more expeditiously.

There are many fundamental objections to the motion being proposed here this morning. We object to it, in terms of practice in this House, in that it does not constitute a proper way of conducting business, in circumstances in which a Government who have not moved the original Second Stage debate, want to add something to a Bill which should have been brought back in for Second Stage debate. Over 25 per cent of the Members of this House have had no say on this Bill in the past. They should have been afforded such an opportunity. I do not believe its provisions will achieve any of the aims the Minister or previous Ministers have claimed.

I should like to respond to Deputy Spring's proposal. The Workers' Party sought already on the Order of Business to bring some sanity into matters pertaining to the provisions of this Bill. Unfortunately, we have been unsuccessful in pressing our point. Therefore, we must address ourselves to exactly what is before us now. It has to be said that motion No. 8 is extraordinary. The Minister's efforts to explain why the Government have had to rely on this procedure were disingenuous in their entirety. This motion is a sloppy way of endeavouring to put right a Bill, flawed from the beginning, which has been taken on board by this Government for some extraordinary reason in view of the very enlightened remarks of the Minister, other Government Deputies and some backbenchers, in the debate which took place two years ago.

The principle in respect of all of this has to be addressed. While it constitutes one only of the eight points the Minister referred to in what is necessary to be undertaken to reduce in some way the costs of litigation, nonetheless — as was pointed out by Deputy De Rossa at the time — it is a step that will help in that direction. For that reason The Workers' Party support the motion and do not propose to vote against it.

I am at a total loss to understand the position of Fine Gael and the argument Deputy Barrett has advanced. He contends that he wants to afford an opportunity for voluntary action on the part of the Bar Council. His amendment does not achieve that at all.

His amendment amounts to this motion, dressed up in a somewhat different fashion, which says that the Minister shall be enabled to prescribe rules to—

I am sorry to interrupt the Deputy.

The voice of the Bar Council is very strong here. This is a good proposal which should be supported and we intend to do so.

As it is now 12 noon, in accordance with the Order of the House this morning, I must now put the question. In respect of Item No. 8, Courts Bill, 1986. Instruction to Committee, the question is: "That the motion be agreed".

Question put.
The Dáil divided: Tá, 67; Níl, 11.

  • Abbott, Henry.
  • Ahern, Bertie.
  • Ahern, Dermot.
  • Ahern, Michael.
  • Barrett, Michael.
  • Brady, Gerard.
  • Brady, Vincent.
  • Brennan, Matthew.
  • Brennan, Séamus.
  • Dennehy, John.
  • de Valera, Síle.
  • Doherty, Seán.
  • Ellis, John.
  • Fahey, Frank.
  • Fahey, Jackie.
  • Fitzgerald, Liam.
  • Fitzpatrick, Dermot.
  • Flood, Chris.
  • Foley, Denis.
  • Gallagher, Pat the Cope.
  • Haughey, Charles J.
  • Hilliard, Colm Michael.
  • Jacob, Joe.
  • Kirk, Séamus.
  • Kitt, Michael P.
  • Kitt, Tom.
  • Lawlor, Liam.
  • Leonard, Jimmy.
  • Leyden, Terry.
  • Lynch, Michael.
  • Lyons, Denis.
  • McCartan, Pat.
  • McCarthy, Seán.
  • McCreevy, Charlie.
  • Briscoe, Ben.
  • Browne, John.
  • Burke, Ray.
  • Conaghan, Hugh.
  • Coughlan, Mary T.
  • Cowen, Brian.
  • Daly, Brendan.
  • Davern, Noel.
  • Dempsey, Noel.
  • Mac Giolla. Tomás.
  • Mooney, Mary.
  • Moynihan, Donal.
  • Nolan, M.J.
  • Noonan, Michael J. (Limerick West).
  • O'Dea, William Gerard.
  • O'Donoghue, John.
  • O'Hanlon, Rory.
  • O'Keeffe, Batt.
  • O'Kennedy, Michael.
  • O'Leary, John.
  • O'Rourke, Mary.
  • Reynolds, Albert.
  • Roche, Dick.
  • Sherlock, Joe.
  • Stafford, John.
  • Swift, Brian.
  • Treacy, Noel.
  • Wallace, Dan.
  • Walsh, Joe.
  • Walsh, Seán.
  • Wilson, John P.
  • Woods, Michael.
  • Wright, G. V.

Níl

  • Desmond, Barry.
  • Higgins, Michael D.
  • Howlin, Brendan.
  • Kavanagh, Liam.
  • Kemmy, Jim.
  • O'Sullivan Toddy.
  • Pattison, Séamus.
  • Quinn, Ruairí.
  • Spring, Dick.
  • Stagg, Emmet.
  • Taylor, Mervyn.
Tellers: Tá, Deputies V. Brady and Briscoe; Níl, Deputies Howlin and Pattison.
Question declared carried.
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