Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

My comments are also on section 18. I thank the Minister and his officials for prioritising the Bill and facilitating the speedy development of the personal injuries guidelines and committee amendments. As everyone knows, there is considerable frustration over the lack of availability and the cost of business insurance. It is a difficult issue for us to address because of constitutional and legal reasons. The Government cannot intervene directly in regard to award levels and the pricing of insurance. This has led to considerable frustration.

The Personal Injuries Commission, chaired by the former president of the High Court, Mr. Justice Nicholas Kearns, highlighted the significant differential between award levels in this country and England and Wales, in particular. The level here is 4.4 times higher for soft-tissue injuries. The commission made a number of recommendations, including the establishment of the judicial council, to compile guidelines for appropriate general damages. We all feel the award gap needs to be closed significantly. It is hoped that the enactment of this Bill, with the establishment of the personal injuries guidelines committee, will enable awards for various types of personal injuries to be recalibrated. The extent of recalibration is a matter for the Judiciary to determine but I hope it will take into account the Personal Injuries Commission benchmarking exercise in its consideration. Assuming the Judiciary responds in a constructive fashion, particularly in regard to award levels for soft-tissue injuries, the reduced award levels and the greater consistency in their application should have a positive impact on both the cost and availability of insurance. There is no excuse for this not happen. As the House will recall, Mr. Justice Kearns, the chairman of the Personal Injuries Commission, noted in the foreword of its second report that insurance industry representatives on the commission repeatedly stated that, as award levels and associated costs account for the bulk of the cost of insurance, if claims costs come down and are maintained at a consistent and predictable level, then premiums should and will also reduce accordingly. On that basis, I will be keeping a close eye on this as a Member of this House and as chairman of the Fine Gael parliamentary party. I passionately believe that what I seek needs to happen. We do not want to go down the referendum route. We hope the Judiciary will respond accordingly.

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