In reply to the Deputy's Parliamentary Question No. 166 of 6 May 1998, I indicated that the amount of the levy payable by all drivers is directly related to the amount of the insurance premium, i.e., 2 per cent of the premium. Given the rate of the levy, it is not apparent that introducing a graduated system would be of particular benefit to younger drivers. One would also have to weigh against that the extra administrative costs of a differentiated levy.
Levies on insurance premia exist in most other EU countries and, in general, at rates much higher than 2 per cent. This levy was introduced to broaden the stamp duty base, thereby raising additional revenue. Consequently, at this stage, I have no plans to make changes to this levy.
Finally, as I stated previously, the issue of the level of car insurance premia paid by young drivers is a matter for the Minister for Enterprise, Trade and Employment.