Oireachtas Joint and Select Committees

Wednesday, 16 December 2020

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Insurance Issues: Minister of State at the Department of Finance

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I have met representatives of the Law Society of Ireland and the Bar Council of Ireland on that issue. Their view is that their members are brought in only if a client comes to them. They say their members are not out looking for business. That is a moot point but what we are doing, as part of a key element, is engaging in PIAB reform. Under the action plan, there is to be public consultation in the first quarter of next year. By June 2021, we will have legislative proposals to reform PIAB. We want it to be the case that when people bring cases to PIAB, they should know that it is the end of the road, by and large, and that by going to court, they will not get any more.

This brings me directly to the book of quantum. Some people believe that if they go to court, they might get a bigger award. They might get an extra 5% but it is minimal because there are substantial legal costs when going to court. Therefore, the book of quantum is the issue. It has been set by PIAB but people feel that if they go to court, they might get more. What is happening now, which is already well under way owing to previous legislation, is that the book of quantum is going to be set by the Judicial Council. The last Government had legislation in place. The council was to report by the end of October next year. When the council sets the book of quantum, everyone will know it is fixed because it will have been set by the judges. The judges are not going to set it and have it changed when people go to court after going to PIAB. Due to the work we have already achieved, we passed legislation in the House last month that brings forward the date for the Judicial Council's report from the end of October next year to the end of July of next year.

We have brought it forward by three months. That and the PIAB legislation work together.

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