asked the Minister for Justice if he will consider amending or abolishing the Malicious Damages Act, in view of the serious burden the present system places on local authorities.
12.
Ceisteanna—Questions. Oral Answers. - Malicious Damages Act.
11.
asked the Minister for Justice if he proposes to review the legislation in relation to costs incurred by local authorities in contesting malicious injury claims.
(Limerick East): I propose to take Questions Nos. 11 and 12 together.
I am not in a position to make any statement in this matter except to say that if the Government decide that there should be changes, an announcement will be made in the normal course. Meanwhile, I think I should again place on record the fact that the Exchequer recoups to local authorities outlay on malicious damage in excess of the produce of a rate of 20p in the £.
I am sure the Minister is aware of the huge amount of money that Dublin Corporation pay out in malicious damages claims. Is he satisfied, for instance, that insurance companies are not using the malicious damages system to avoid their responsibilities in meeting claims?
(Limerick East): I am aware of the malicious damages claims being paid out by Dublin Corporation and Dublin County Council, but the Exchequer recoups to local authorities outlays on malicious damages in excess of the produce of the rate of 20p in the £. Beyond that I am not in a position to make any statement on the matter except to say that if the Government decide that there should be a change, that will be announced.
Is the Minister aware of the anomalies in that scheme? The local authorities have to pay a maximum of 20p in the £ for the defending and examination of the claims, and in a Border area this can be a fairly hefty sum each year in comparison with other areas which do not have to contest Border claims.
(Limerick East): I am aware of certain difficulties, but if the Government decide that there should be a change an announcement will be made then in the normal course.
Will the Minister examine this very quickly and closely? In Monaghan we had a claim in which the courts awarded something like £50. The person appealed it and it went to a higher court and in all to contest and examine that claim cost about £4,900 for that type of award. There is a real anomaly there. I ask the Minister to examine that because we find that our local authority in contesting and examining claims have to face high costs in relation to very small awards.
(Limerick East): I am aware of difficulties in both the implementation of the Act and the nature of the Act itself. Certainly if the Government decide to make changes in the procedure, that will be announced. At the moment it is being examined and I am not prepared to make a statement.
Mr. Leonard
If contesting a claim costs a council £4,900 for an award, on appeal, of £75, does it make sense? The situation needs to be examined closely and urgently.
Will the Minister keep in mind in the examination to which he has referred the fact that the type of person who avails of the malicious injury code is not necessarily a property owner but more often than not an employee whose car has been vandalised or destroyed? In other words, would the Minister keep in mind the fact that for a very large number of people who are not large property owners this code, or something like it, is still and will continue to be essential?
(Limerick East): I am certainly aware of what Deputy Haughey has said. One tends to think of malicious damages in terms of very large, high profile headlines which one sees in the newspapers, but of course many claims which are small in themselves are very significant to the claimants.