Eamon Scanlon (Sligo-Leitrim, Fianna Fail) | Oireachtas source

Much of what I am going to say has already been said, but it is important that it is said. I want to compliment my college, Deputy Michael McGrath, because he has pursued this for many years. Quite a number of people were badly affected by what happened to Setanta Insurance. At least 1,500 people have been left in limbo for the past number of years, not knowing where they were going to go. They were stressed out. They received legal letters, and wondered what their future was going to be. I am glad that issue is being dealt with at the moment.

I am aware that there are no free dinners. Someone is going to have to pick up the tab for this, which is unfortunate, but it is the right thing to do. Quinn Insurance has added 2%, and another 2% will now be added on top, plus 3% tax. That amounts to a 7% increase overall. I would like to think that this levy will be abolished as soon as this fund has been collected. It is important that happens. I am old enough to remember PMPA insurance and the levy that was put in place at the time to sort that problem out. I do not believe that levy was ever removed. Perhaps it was; the Minister of State might let me know. It is important that when the required moneys are collected the levies are removed.

There has been much talk about claims and the cost of insurance, particularly around motor insurance and motor insurance claims. The Personal Injuries Assessment Board, PIAB, was brought in by this House in 2009. PIAB did its job for a number of years. It worked. It brought down the cost of claims and insurance, particularly for young people. The way young people are treated in terms of insurance has been mentioned tonight, and I believe it is very unfair. Every young person who seeks insurance today is treated like a road hog. The quotes they get for insurance are very unfair. There are many very good young people out there who are willing to work. They can buy a car, but cannot pay for the insurance. That is the unfortunate, sad thing. I come from south Sligo, which is a rural constituency, much like that of the Minister of State. If people want to get to work they have to get a lift from someone who is travelling close to their work, or a lift from their parents, which is often not easy. They need transport. There is no such thing as a bus, DART or Luas in my constituency and in many others around the country. It is discriminatory against these young people. I believe they need help. PIAB worked, but unfortunately the legal profession, over a period of time, wound it out. The facility is not being used as much as it should be now, and claims have crept up.

One day a car rolled back and hit the front of my car. There was no damage done whatsoever. I got out and looked at it and found no damage to my car or the other car. Everything was fine. My no claims bonus was protected. I eventually discovered that the person who owned the car that rolled into mine was paid €36,000. That is a fact. I only found out by accident. I insisted that my car and the other car were inspected by the insurance company and was told that there was no damage to either car. This is the type of thing that is going on. I am glad to see that in recent times these insurance claims are being investigated and stopped. They are robbing everyone in this country, and it is only right that such claims are stopped.

The issue of ten year old cars was mentioned. It is important that it is mentioned as often as possible. We all drive on the roads every day. A car might overtake us, and we might have to add up the years to figure out how old it is. A car that looks well and is driving well could be 13, 14 or 15 years old if it is well looked after, well serviced and taken for an NCT regularly. Believe it or not, 147,000 people in this country own cars which are over ten years old. There are many reasons for that, one of which is affordability. Other reasons include that cars today, which are well serviced, will last for 15, 16 or 17 years. It is outrageous that insurance companies inflate premiums for people driving these cars. It is legal robbery.

Most of the people who have these cars look after them. If they did not, they would not be in the condition that they are in. What is being done is outrageous.

Moreover, this is affecting rural areas and rural jobs. It is affecting the small garages that employ three or four people in small towns like Ballymote, Tubbercurry, Gurteen and other places like that. It is affecting jobs there. It is affecting the person supplying the tyres for those cars. Little businesses have built up throughout the rural areas servicing that type of business. This phenomenon is taking jobs away. That is exactly what it is doing. It should not be allowed to happen, because it is forcing people to change their car more often. That is the reason.

Something else it will do, which people do not yet realise, is devalue the six year old, seven year old or eight year old car. What is that car going to be worth? Nothing, quite honestly, if they get away with what they are doing. It is outrageous, and a lot more should be done to make sure that they do not get away with it.

I refer also to public liability insurance. The haulage business was mentioned in that context. I have a friend who employs 42 people in the haulage business. His insurance premium went from €70,000 to €140,000. That is a fact. Will the Minister of State imagine taking out his chequebook and writing a cheque for €140,000 just to stay in business and keep employing 42 people? There is no support for those people. They get no support whatever. In fairness to them, they do not want it provided they get a level playing field. They are definitely not getting that today where insurance is concerned. It is outrageous, quite honestly.

The other issue that was mentioned was people returning home. If someone has been away from the country for three years and comes back, they are new again as far as motor insurance is concerned. That is not fair to people. As was said by the Minister of State's colleague, Deputy Neville, some people work in a company and drive a company car for ten, 15 or 20 years. They may have 20 years' worth of no-claims bonuses. When they retire from work, purchase a car for themselves and try to get insurance for the car, the same company tells them they are starting out again. That is outrageous carry-on. They should not be allowed to do what they are doing.

Another issue is driving licences. I know it is not the Minister of State's brief, but people are coming back to this country and we welcome them back. If I come from Canada, Japan, Korea, Australia or England, I can exchange my licence in that country for an Irish licence. If I come from America, however, I cannot exchange an American licence from an Irish licence unless I come from one of three states. People coming from America have to start off again with a provisional licence. Thanks to the Bill passed through the Dáil last week by the Minister for Transport, Tourism and Sport, Deputy Shane Ross, even though they might have driven for 40 or 50 years, they have to have a fully licensed driver with them until they can do their test. This is the nonsense that is going on. Quite honestly, it has to stop. I know the Minister of State is a decent individual, and I hope that he carries the message loud and clear to the senior Ministers of this Government so that this can be dealt with fairly.

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