Niamh Smyth (Cavan-Monaghan, Fianna Fail) | Oireachtas source

I congratulate Deputy McGuinness, Chairman of the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach. We welcome the working group's report. The key issue is implementation and the reduction of motor insurance premiums. Premiums for consumers in Cavan, Monaghan and across the country are soaring while the Government drags its feet on the issue. Fianna Fáil has long called on the Government to act on the rising cost of motor insurance. In 2014, motor insurance costs increased at an annual rate of over 11% while in 2015, they rose by 30%. In the 12 months to August 2016, motor insurance costs increased by 28%. It is completely frustrating that it has taken until now for the Government to respond on this major issue.

Fianna Fáil proposed a policy in the middle of 2016 on motor insurance premiums and has contributed heavily to the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach's report on the rising cost of motor insurance. These policies and reports require a Government response to tackle the issue. The key recommendations of the committee mirror what we proposed in our own policy and the key issue now is implementation. The report will be of no use unless it is followed by Government action and, ultimately, reduced motor insurance premiums. People are contacting my constituency office on a weekly and daily basis to complain about rising insurance costs. I have heard horrendous stories from people in my constituency who were involved in accidents with individuals that were uninsured. A person badly injured in such an accident is forced to follow it up with the Insurance Federation of Ireland for compensation. I am sorry to say that I feel it is a direct result of the Government's failure to address the high cost of insurance premiums.

Since January 2011, the cost of insurance has rocketed by 51% in some instances. Business customers needing to insure cars, vans, fleets and busses have fared even worse. Some people who have returned to this country to find a job or who have returned to work for the first time since the recession as self-employed business persons have told me they cannot get motor insurance. Fianna Fáil has raised this issue in the Dáil consistently and put forward numerous motions and published proposals to tackle these exorbitant costs. It is an issue that is affecting thousands of people across Cavan and Monaghan. Motor insurance is not an additional thing we need, it is a legal requirement. People are now seriously considering whether they can afford a car at all. It is a growing irritation among motorists who are having to fork out for insurance, motor tax and high fuel costs, many of whom feel completely ripped off. Businesses are also being hit with the rise in premiums squeezing profits and ultimately risking jobs.

It has taken the Government too long to wake up to the problem which had already become a crisis before it called on the finance committee to find ways to curb the rising cost of insurance. These recommendations were signed off last November, but it is only this week that they have come to Cabinet. There is no sense of urgency from the Government on this matter, which is deeply worrying for the thousands of motorists whose premiums continue to increase.

I am worried about the timeline being reported regarding implementation of the committee's proposals. It has been suggested that it could take as long as 18 months before certain measures, such as the creation of a detailed database to combat fraud, are implemented. This indicates that the Government is not paying the right attention to the crisis. The key recommendations around the following issues are mirrored in our policy and the committee's recommendations: protecting the consumer; improving data availability; improving the personal injuries claims environment; reducing the costs in the claims process; reducing insurance fraud and uninsured driving; and promoting road safety and reduced collisions.

I ask the Minister of State to take charge of the situation and ensure that these proposals are implemented without delay so that the rip-off culture which has been perpetrated by the insurance industry over the past number of years is effectively tackled.

See this speech in context