JOINT COMMITTEE ON ENTERPRISE AND SMALL BUSINESS díospóireacht -
Wednesday, 11 Jan 2006

Insurance Market Reform: Draft Third Interim Report.

Chairman

Item No. 2 is a discussion on the draft third interim report on reform of the Irish insurance market, on which we have nearly completed our work. We have to tidy up some details that arose at yesterday's meeting. Almost everything has been completely agreed. On behalf of the committee, I again thank our consultant, Myles O'Reilly, and his assistant, Linda Morris, and welcome them to this meeting. Members will agree that their work has been invaluable to the committee in its deliberations on the insurance market during the past three years. I also thank the clerk, Eoin Faherty, and Elsie Wade for all their hard work and endeavour and for assisting us this morning.

With the permission of the committee, I will read recommendations Nos. 54 to 58, inclusive, from the report. No. 54 states the Government should consider holding a Constitutional Referendum to permit random testing for substance abuse that may be impairing a driver's ability to drive safely. No. 55 states the National Council for Curriculum Assessment should make early provision for the inclusion of the driver theory test for secondary school students as part of their transition year studies. In addition, secondary schools should be required to provide simulated driving instruction for all students on reaching 17 years.

No. 56 recommends the establishment of an inter-ministerial group, comprised of the Taoiseach, the Ministers for Health and Children, Transport, Justice, Equality and Law Reform, Education and Science and Finance to oversee radical changes in road safety.

No. 57 states the proposed road safety authority should be independent in the carrying out of its functions and should be adequately funded jointly by the Exchequer and the insurance companies to finance its activities.

No. 58 states that to encourage drivers to stay within the speed limits, all insurance companies should be required to offer significant discounts to drivers who voluntarily accept satellite monitoring of their speeds and that these discounts should vary depending on the perceived risk and should be substantial for young drivers.

Senator Leyden

I propose that this report be formally adopted by this committee.

Deputy Callanan

I second that proposal.

Chairman

It is unanimously agreed by the committee that we adopt the report. I thank everyone for attending the official launch of the report this morning and I look forward to Deputy Hogan joining us for the press conference at 11.45 a.m. We will now go to the audio visual room to hold the press conference.

I have two good examples of the work we have been doing bearing fruit. Ms Shirley O'Kelly, from O'Kelly Sawmills and the Shed Man, is with us. That business employs 28 people and was growing at a good rate but was almost forced to close because the company could not get an insurance quotation when Lloyds insurance company in Britain would no longer offer one. Hibernian Insurance offered a quotation of €71,000 when Mr. Pat Delaney of the Small Firms Association intervened with 48 hours to go. The company had to pay €71,000 when its cover had previously cost €24,000. That demonstrates the enormous strain that existed in 2002. The company was glad to survive and is now in the pleasant position three years later where cover costs €39,000. Ms O'Kelly was at our photo call earlier and I thank her for attending. Ms Carol Treacy from the Petite Café on Kildare Street employs four people. In 2002, her premium was €1,400 and thankfully that has fallen to €900 today. She made us welcome in her restaurant and we had our photograph taken with her.

These are important examples that committee members should quote to demonstrate the good work we are doing in this committee when we are interviewed by the media. Members should point out that it was this committee that convinced the Government to introduce the Bill that led to the establishment of the PIAB, the Civil Liability and Courts Bill, the Health and Safety Bill and the Road Traffic Bill. All members should go on local radio immediately after the press conference. I will do the usual one or two interviews and leave it to colleagues to get whatever they can out of it in national and local media.

This has been the most successful committee in the House in making a marked difference and putting back money into the pockets of every man, woman and child in Ireland following our deliberations over the past three and a half years. I am proud to be Chairman of the committee and am proud of its work and achievements; we should go out and sell that.

I was delighted this morning to hear the spokesman for the Minister for Transport supporting the work of the committee. Given the difficulties and future challenges, the Minister is most anxious to make an immeasurable and marked change in the next 12 to 18 months.

Mr. Myles O’Reilly

According to The Irish Times today, the Minister for Justice, Equality and Law Reform has announced the publication of a report to the effect that legal fees should be made more transparent. The working group which has produced the report was set up as a result of one of the recommendations made by this committee.

Chairman

Will Mr. O'Reilly furnish me with a note on that point?

Mr. O’Reilly

Among the anticipated developments noted in our report was that the report of the working group would be published within the next six months. The Minister has announced that it is being published today. That is a significant achievement.

Senator Coghlan

The Chairman should cover that point at the press conference.

Chairman

I welcome Deputy Nolan. I thank all the members present. As there is no further business to transact, we will adjourn to the audio-visual room for the press conference. Is that agreed? Agreed.

The joint committee adjourned at 11.50 p.m. sine die.