Joe Higgins (Dublin West, Socialist Party)

I will discuss the point with the Ceann Comhairle at another time. I will be more general for the remainder of this contribution. However, I have said things before which have proved to be true.

What is undeniable is that the profits of insurance companies have rocketed in recent years to the tune of hundreds of millions of euro — up to €500 million. Clearly, the number of vehicles on the roads has increased but I have no doubt ruthless measures used by various groups were an important factor. This is not about eliminating fraudulent claims but about pressurising ordinary, genuine people with genuine claims to settle for much less. In claims of personal injury due to motor car crashes, there is a good reason not to rush into a settlement as long-term effects of injuries may not be evident early on. Clearly, profits increased as a result.

In 2005, another major insurance company awarded a lucrative contract worth approximately €40,000 to a recently retired, very senior member of the Garda Síochána to assemble a panel of claims investigators for that company. Meetings of retired and serving gardaí were held in the second half of 2005 to advance this.

The fact that those among the most senior officers of the Garda Síochána can work in a job with serious traffic responsibilities and then, within a short period of retiring, work for multinational insurance companies raises the most serious issue. It is similar to senior planning officials in local authorities resigning and then going to work for developers who have substantial dealings with the planning authority for which these officials previously worked. I believe the insurance companies should be in public ownership to ensure that the interests of the public are served.

A so-called memorandum of understanding was signed by the Garda Commissioner and AXA Insurance providing an extraordinary situation whereby gardaí in the south east were instructed to call AXA recovery agents only to tow away vehicles involved or damaged in road crashes. It is completely inappropriate for the police force to give a clear commercial advantage in an entire region to one arm of a major multinational insurance corporation.

The Minister for Justice, Equality and Law Reform informed me last week that gardaí in the south east had saved €10,000 as a result of this agreement. We seek further clarification on that. Of course, AXA would have gained enormously commercially from the arrangement. The Minister also informed me that an exclusive arrangement between the Garda Síochána and AXA Insurance to have damaged vehicles in the Dublin metropolitan region towed away will be introduced in Dublin soon. The capital has one third of the population of the State and this exclusive arrangement with the Garda would be an enormously lucrative situation for this insurance company. What do the other companies, smaller garages and towing companies think of this proposal? They will be cut out to benefit the major multinational, AXA Insurance. I call on the Minister to halt this arrangement immediately and to arrange for a full discussion on the issues raised by these questions.

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