Dáil Éireann Debate, Tuesday - 1 May 2012
509 Deputy Thomas P. Broughan asked the Minister for Justice and Equality when he will legislate to give effect to the recommendation in October 2010 by the working group on periodic payment orders that was set up by the President of the High Court, Mr Justice Nicholas Kearns and chaired by Mr Justice John Quirke that legislation was required to allow cases be settled on the basis of PPOs; and if he will make a statement on the matter. [21358/12]
Amharc ar fhreagraThe Programme for Government includes a commitment to introduce legislation to facilitate courts making provision for structured settlements in circumstances where lump sums are currently awarded as a consequence of individuals suffering catastrophic injury because of the negligence of another. In the High Court Working Group Report on Periodic Payments to which the Deputy refers, it is recommended that legislation be enacted to empower the courts to make periodic payment orders as an alternative to lump sum awards to compensate injured persons in cases of catastrophic injury where long term permanent care will be required. The Working Group also recommended that periodic payment orders should only be made where the court is satisfied that continuity of payment under the periodic payments order is reasonably secure.
The successful operation of a statutory scheme for periodic payments requires the establishment of a financial infrastructure to ensure that continuity of payment is secure. In this regard the Working Group recommended that the State, through the agency of the National Treasury Management Agency, be empowered to provide injured victims with the necessary security for periodic payments either by the provision of annuities to insurers and others or in such other manner as may be appropriate. Alternatively it was recommended that consideration be given to the introduction of a statutory scheme whereby payments made under periodic payment orders will be statutorily protected and guaranteed.
With respect to security of payment, the NTMA is conducting an actuarial review to examine the feasibility and cost-effectiveness of periodic payment orders as an alternative to lump sum payments, or other options. The review will examine in particular the feasibility of the State acting as an annuity provider to insurers and indemnity providers in personal injury actions to enable compliance with the security of payments principle. The outcome of the review will inform the development of proposals underway in my Department to meet the Government's commitment to legislate in this area. The review is expected to be completed in June 2012.
