Dáil debates

Thursday, 23 June 2016

12:05 pm

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

I, too, congratulate the Republic of Ireland soccer team on what was a momentous win last night in Lille. The match and that goal will rank right up there with the best of our memories of Irish soccer. I say well done to Martin, Roy, Robbie and the entire team, and, of course the fans, whom everyone will agree have done us proud and lifted all our spirts. I say very well done to them and the best of luck.

On the issue Deputy Michael McGrath raised about motor insurance and the reports and reality of sharp increases in motor insurance being charged to some people, as the Deputy is aware, the Government is concerned about it. Motor insurance is a very important part of the household budget and the kind of increases we have seen have a serious impact. A number of Departments, State bodies and private sector organisations have an interest in the cost of motor insurance. I am advised by the Minister for Finance that he has asked his officials to examine the factors which contribute to the increasing cost of insurance. Deputy McGrath himself set out the multifaceted nature of the increases and the work that needs to be done.

The work is part of an overall review of policy in the insurance sector, which the Department of Finance is carrying out in consultation with the Central Bank and other Departments, agencies and external stakeholders. The objective of the review is to recommend measures to improve the functioning and regulation of the insurance sector. The first phase of the review is focused on the motor insurance compensation framework and that work is nearing completion. The next phase involves examining the factors contributing to the increasing cost of insurance and identifying what short-term measures – as the Deputy said, the matter is urgent – could be introduced to help reduce the cost of insurance for consumers and businesses while also addressing those measures that need more long-term policy implementation.

The issue is a priority for the Minister for Finance. I am sure he would accept the point made by Deputy McGrath on motions passed in this House and the need for follow-up action. I will bring to his attention the fact that Deputy McGrath has raised the matter again this morning.

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