Jerry Buttimer (Cork South Central, Fine Gael)

How dare they demean Government Members who are interested in protecting and preserving jobs and who want a new approach to politics, which the Minister and the Government have adopted.

Prior to implementing this legislation the Minister will take precautions to ensure that the cost to policyholders is limited as far as possible. The review undertaken by the State Claims Agency to review processes at Quinn Insurance has shown that the administrators have made positive changes. It is important that we have a debate about the future viability of the insurance industry. I am not an expert but there are issues regarding insurance that need to examined. It is easy to only think of insurance companies as mercenaries focused solely on profit but we must also remember the important role that they have in facilitating our daily lives, for example, driving cars, going to the shops, buying houses and attending concerts and football matches. Without a viable insurance industry, all these activities would be curtailed or would cease. Insurers have an important social function which must be facilitated.

The flood in Cork city in 2009 caused havoc, destroying homes and businesses. However, it provided an example of the importance of insurance companies. If it was not for insurance cover, people would not have been able to return to their homes and businesses would not have reopened. While insurance companies have a social role, they also have social responsibilities. They have a responsibility to promptly pay out on valid claims and not to frustrate the innocent victims of misfortune. They also have a responsibility to provide insurance cover at a reasonable cost in order that people can drive to work or buy a house. Too often these responsibilities are ignored.

Recently I have come across a number of cases of people having difficulty obtaining house insurance in Bishopstown and Glasheen in Cork city. I was provided with a list of six insurers that refused to quote by one person. House sales in Cork have fallen through because of the inability of purchasers to secure insurance. Ostensibly, the reason given is subsidence issues but even where underpinning has been carried out, the insurers are still refusing to quote. The refusal by a number of insurers to provide cover for houses in Bishopstown is preventing young families moving into the area. Recent census figures show that the population in mature and established parts of Cork city has fallen by more than 20%. For years young people could not afford to buy in the city but now the reluctance of insurance companies to provide cover is preventing them from moving into the area. I hope that can be addressed.

We cannot have a situation where insurance companies refuse to cover homes in a large part of the country's second largest city. When the State takes actions to secure the viability of the insurance industry, the very least we can expect is an industry which understands its function in society and which facilitates people to buy a home. Sadly, that is not happening and that needs to be addressed.

In the 1960s the State had to rescue Equitable; in 1983, ICI; in 1985, PMPA; and this year, Quinn Insurance. We have a history of the difficulties of insurance companies becoming a burden on policyholders for many years. I welcome that the Minister has attempted to limit liability in this instance but I hope that the Department of Finance and the Financial Regulator have learned hard lessons from this debacle. We must have a regulatory regime that does not permit personal financial gambles to have such dire consequence for our entire country.

It is important to recognise that the legislation affects 1,600 jobs. These jobs are held by ordinary men and women, as the Taoiseach said earlier, who are not on high powered salaries and who are trying to stay in employment. There are concerns about the role the insurance industry plays in society and there is a need for a review. I hope the Government will proactively engage with the insurance industry in this regard.

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