Dáil Éireann Debate, Thursday - 7 October 2004
88 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the steps he has taken or proposes to take to control industrial costs with particular reference to insurance; and if he will make a statement on the matter. [23704/04]
View answerThe National Competitiveness Council, NCC, statement on prices and costs 2004 highlights the key areas that contribute to Ireland's cost base and which affect our competitiveness. In addition to this statement, each year the NCC undertakes a comprehensive benchmarking exercise comparing Ireland's performance across a wide range of indicators against 15 other countries. This benchmarking exercise provides the statistical analysis for the NCC's annual competitiveness report, which is published each year in conjunction with the council's report on the key competitiveness issues facing the Irish economy in the forthcoming year. This report is entitled the Competitiveness Challenge.
These reports will be published later this month and will contain detailed recommendations designed to address weaknesses in Ireland's competitiveness performance across a range of areas including cost. I look forward to receiving these reports and to addressing the issues to sustain Ireland's competitiveness. The recommendations will require attention across a range of Departments and will be considered by an interdepartmental group set up to take the issues forward.
In relation to insurance, a key initiative in my Department was the establishment of the Personal Injuries Assessment Board, PIAB. By eliminating the need for litigation costs where legal issues are not in dispute, the PIAB will significantly reduce the cost of delivering compensation.
89 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the place in which Ireland stands in the international league of export competitors in respect of insurance costs; and if he will make a statement on the matter. [23703/04]
View answerThe NCC statement on price and costs 2004, which benchmarked Ireland's competitiveness ranking among a survey of 16 countries, showed that Ireland's expenditure on insurance ranked fifth highest for non-life insurance behind Switzerland, the US, the Netherlands and the UK.
There has been an improvement in the functioning of the Irish Insurance market. The Irish Insurance Federation recently revealed that the 20 non-life insurance companies operating in the Irish market made a combined operating profit of €747 million in 2003. While insurance profitability has led to reductions in premia it also enhances the attractiveness of the market to prospective new entrants.
On the publication of the NCC statement on price and costs, the chairman of the NCC noted that the fall in the cost of insurance for many businesses and consumers over the last year has demonstrated the potential of determined government action in lowering prices for consumers and improving cost competitiveness for business.
