Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I am well aware of Donegal's farming background, which is one of the most mixed and varied in the country. Given Donegal's size in an area where there are challenges, we must do what we can about them. I have been advised by Insurance Ireland that livestock marts have significant exposure to injuries to employees and members of the public. This has resulted in claims occurring with a level of frequency which has led to a reduction in market capacity due to the hazardous nature of the risk.

In response, insurers have developed active risk management programmes in order to try to reduce the level of accidents and injuries. In addition, I understand that insurers have been working with marts with a view to implementing improvements in management practices and facilities to reduce claims as this is the key area in terms of managing claim costs.

Insurance Ireland has advised that it is not aware of any recent major increases in the cost of insurance for agricultural mart owners. However, if the Deputy is aware of a specific issue facing an individual mart owner, I recommend that he or the mart owner raise it with Insurance Ireland, which I understand is happy to discuss the issue as part of its free insurance information service for those with queries, complaints or difficulties regarding obtaining insurance.

The Deputy should note that the Minister for Finance is responsible for the development of the legal framework governing financial regulation. Neither the Minister nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products as these matters are of a commercial nature and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance, which expressly prohibits member states from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, the Minister is not in a position to review individual cases nor to direct insurance companies as to the pricing level or terms or conditions that they should apply in particular cases.

Nevertheless, it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the availability and cost of insurance. In terms of measures being taken to tackle the cost of employer and public liability, the Deputy will be aware that this is being examined as part of the second phase of the cost of insurance working group. The working group is building upon the previous work done in the motor phase in order to determine how it can be applied in the employer and public liability insurance claims areas. The working group is also considering the impact of the cost of insurance on the competitiveness of particular business sectors, the impact of health and safety issues on the cost of insurance and other market issues. The working group has held extensive consultations with a range of stakeholders, including the Irish Farmers' Association, IFA, which provided a submission to the working group. This issue was not raised in its submission.

It is envisaged that the final results of the second phase will take the form of an addendum to the existing report. As with the first phase, the aim is for all relevant bodies and stakeholders to work together in order to deliver fairer premiums for businesses without unnecessary delay. As it is likely that employer and public liability risks are factors in the cost of insurance for marts, any recommendations emerging from this review should be of relevance to the mart sector. I met with the IFA in Wexford yesterday and raised this issue with it. There are two marts in Wexford and two marts that are very close to the border of Wexford so there are four marts in direct proximity to Wexford but the matter has not been raised with me. However, if there is a specific issue in a specific area, I will certainly take it up to improve matters so that premiums are not unreasonable and unfair.

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