Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

In short, there is no concern. I will go into a little detail which might provide the information and the differences regarding the levy and the host-based and home based-systems, because we believe this change should allow sufficient flexibility for the Minister to introduce regulations requiring insurers writing risks outside the State to contribute to those financing arrangements, whether on an ex post or ex ante basis.

Part 5, as the Deputy rightly identified, authorises the Minister for Finance to introduce regulations to establish a funding mechanism to require such Irish-authorised insurers to contribute toward the cost of insolvency compensation in respect of their cross-border business. Such regulations also may empower the Central Bank to establish a sub-fund of the insurance compensation fund, into which contributions collected under these regulations will be paid. Any such financial contributions will relate to third-party motor liability insurance carried on by Irish authorised insurers and other member states. As such, it should not impact on Irish motorists in terms of any levies or concerns of costs. Again, as I mentioned, we saw from the data this week that in excess of 90% of Irish motoring insurance is on a comprehensive basis as opposed to this directive requiring it under third party, which obviously leads to a much greater difference in costs. It is also planned that the regulations, as outlined, will be developed in due course following the necessary consultation with the relevant stakeholders and full consideration of the issues. I hope this outlines that there is not a concern and that there is plenty there to look after it.