Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

I will take the latter issue first. The Deputy may or may not recall, but I believe I mentioned on Second Stage that when the Courts and Court Officers Bill 2002 was enacted it envisaged increases in jurisdiction in the Circuit Court of up to €100,000. Similar objections were raised on the basis that claims would go up. The reality is that the jurisdiction of the courts has not changed since 1991. Far too much court business, including in the area of personal injuries, is now in the High Court and unnecessary legal costs are being incurred in that area. A substantial body of the work the High Court currently receives could be and will be properly dealt with in the Circuit Court under the Bill. The pressure on the Circuit Court will be relieved by the increased jurisdiction of the District Court resulting in some of the cases currently dealt with at circuit level being dealt with at district level. We will keep a watchful eye on the situation in so far as there are additional pressures on the District Court to ensure that it has the resources necessary.

There is no basis for the claim that because the court jurisdictions have increased higher awards will be made. There is no research to indicate that claim is correct. It is simply a claim that is made. On the basis of that claim being made we would freeze forevermore court jurisdictions to what they were in 1991. We cannot do that and it makes no sense.

There is no real body of evidence to support some of the concerns that have been expressed. There will be an increase in the Circuit Court jurisdiction in the area of personal injuries. Instead of being up to €75,000, as it is across a broad range of areas, personal injuries limits are being kept at €60,000, which is slightly below the inflationary increase that could have been made if our legislative approach had permitted it and, according to my calculations, if we had simply maintained 1991 values. The Circuit Court jurisdiction at the moment is a little over €38,000. Based on inflationary provisions or an increase in the consumer price index since 1991, personal injuries could be brought up to €65,000 and, therefore, we would be in exactly the place we were by way of value in 1991. I have paid some regard to this and perhaps the increase in the personal injuries award size has been less radical and more conservative.

The increase to €75,000 in other areas is borne based on the need to ensure that there is a degree of certainty about court jurisdictions for a reasonable period. In the past, the practice was that approximately every ten years court jurisdictions would change. Those particular issues were raised in 2002. This is not a party political criticism and it is not intended that way. However, once those issues were raised it seemed the whole system went into a paralysis and nothing happened with court jurisdictions. I have had regard to it. In fact, the claims are not based on any sound evidence that I could rely upon. No one has done research to determine whether if the jurisdiction is increased by a given amount it would produce higher orders made by the courts which, of themselves, would then produce higher insurance charges. I have absolutely no doubt that the Circuit Court Judiciary, which is well used to dealing with financial claims, will apply the same independent assessment of claims of €60,000 or less as were made in the High Court. The benefit is that if one is claiming €60,000 or less then legal costs are likely to be one third less as a result.

It seems that some of the claims made by those who have raised this issue do not stack up. The reduction applies both to the plaintiff and the defendant. Whether insurance companies are picking up legal costs for those who they are defending, their own legal costs or whether they are required to pay the legal costs of the claimant, there will be considerable savings where rewards of €40,000 or €50,000 are made because the legal costs hit will be less. In fact, there may be a saving ultimately to insurance companies and if that occurs I hope it will be reflected in premiums.

I do not like this concept whereby for an individual citizen who has a genuine - I emphasise genuine - claim, High Court jurisdiction should be maintained at an artificially low level in order that fear of a High Court action would act as a barrier to someone processing a genuine claim. Our courts should not be used in that way and I believe it to be wrong. Therefore, it is correct to take this action.

Finally, Deputy Niall Collins asked when did I envisage the increase to the court jurisdictions would take place. The courts rules committee must make the relevant rules that are applicable in respect of the District and Circuit Courts but I certainly envisage that the new jurisdictions will be in place in advance of or no later than the commencement of the new legal term after the summer vacation.

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