Robert Dowds (Dublin Mid West, Labour)

I take to heart some of the remarks made by Deputy Ross. It is important that there is detection of wrongdoing. Yesterday, I spoke on a similar matter during the Topical Issue debate with regard to the fact that petrol stations are selling laundered fuel. It is very important that detection is pursued to the maximum. It is worth investing money in this area because it would yield revenue as well as, it is hoped, reducing prices for people.

In speaking on the Bill, I raise one anti-competitive issue which some of my constituents brought to my attention. The practice is not in the best interests of the public. As we know, the country's automotive industry supports a great deal of employment, and it is essential that it has a good working relationship with the insurance industry when dealing with damage to vehicles involved in accidents. However, I understand the insurance industry has adopted a practice of steering claimants to use certain motor service providers to have their cars repaired, most particularly with regard to windscreens, to the point whereby consumers who choose to have their cars repaired by a service provider who is not on the inside track with the insurance providers have considerable difficulties. For example, insurance companies are slow to process claims for consumers who use service providers who are not on the inside track, to the point of obstructing business.

I have received reports of insurance companies insisting on claimants using service providers who may be some distance away, when perfectly good local service providers would be able to do just as good a job at the same price. A particular concern is that some insurance companies have set up dedicated claims lines, which are routed directly to motor service companies on the inside track, thereby railroading consumers into using the insurance companies' preferred suppliers, thus depriving small service providers of any chance to get the business.

The combination of these practices is anti-competitive and deprives consumers of the choice of motor service providers to which they are entitled. This is leading to considerable hardship among some motor service providers, who are fully qualified, registered, trustworthy and competent in their field, but are not able to stay afloat due to the fact that they are not on the inside track with insurance companies and are completely deprived of any share of the quite considerable trade. The Irish Automotive Glass Repairs Association, which represents 20 small independent windscreen companies, has stated that as a result of these practices, the majority of its companies are struggling to survive the recession, and that this practice will inevitably cost jobs, if it has not done so already.

The insurance industry claims that approved repairer programmes were established to reduce the cost of claims and thereby to lead to reduced premiums for consumers. One major insurance company recently announced it has established an approved panel of builders that its policyholders must use for household claims. However, Dermot Jewell of the Consumers Association stated of these practices that the move could restrict choice and competition and give builders on the panel an unfair advantage over other builders. He stated, "This happened with motor insurance policies and it did not lead to lower premiums for consumers but did lead to less choice."

The Competition Authority has looked into this matter and it has washed its hands of what is an anti-competitive practice. I contacted the Minister, Deputy Bruton on this matter but it seems to have gone into the sand. I ask him to make the necessary amendments to the legislation to put an end to the steering in which the insurance industry is involved and to help out small businesses such as those to which I referred to stay afloat in the teeth of the current recession. If the Government is serious about helping small businesses and giving consumers choice, this industry is a good place to start. I hope the Minister of State is listening to what I say and will take measures to put an end to these anti-competitive practices. I look forward to hearing the response.

See this speech in context