Mr. Gerry Cross:

There are two issues, the first of which is motor insurance premium levels, which this committee has discussed at great length. The Central Bank has been very involved in the work of the cost of insurance working group led in the first instance by the then Minister of State, Deputy Eoghan Murphy, and later by the Minister of State, Deputy Michael D'Arcy, in addressing questions around the reason premium levels have increased. We are now seeing a moderation in premium levels. On this side, there is a whole suite of issues to be addressed.

On the straightforward issue of compensation, clearly if there is enhanced compensation to be available to individuals, if and when there is a failure of a firm which needs to be paid, then that cost is distributed across-----