Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank all Deputies for the contributions they have made. I support the Government amendment moved by the Minister of State, Deputy Fleming. I will address some claims made by Opposition Deputies. A claim has been made about action that has been taken elsewhere and action that has not been taken here in Ireland. Those two claims are central to many of the political arguments put forward today. I will conclude by addressing some points in Deputy Doherty's Bill.

I begin by addressing a point made about what has happened in the United Kingdom. It is a point that has been made by many of the Sinn Féin speakers who supported Deputy Doherty's opening statement. Let us be clear about what has happened in the UK. I will read from the Financial Conduct Authority website because this set of facts has been entirely absent in what has been put forward in claims about what the FCA has done in the UK. It is correct to say that the FCA has put forward proposals to deal with this issue and it referred to figures that were accurately quoted by Deputy Doherty in his opening contribution. Let us look at what it will then go on to do, which its website states is as follows:

The FCA is seeking views on its proposals by 25 January 2021. It will consider all the feedback and intends to publish a Policy Statement and new rules next year along with its response to the consultation feedback.

When we are focusing on what is happening in the UK and claims of action being implemented in the UK, let us look at the reality of what is happening, which is that it has published proposals as outlined by Deputy Doherty, but these proposals are subject to public consultation and further feedback and will then lead to a policy statement with implementation of action next year. That is not what we have heard from some Opposition speakers here today.

Another claim made by many Deputies is that other countries have acted. Name the other countries that have acted. Name the countries in the European Union that have implemented the Bill that many Opposition Deputies are supporting. If a claim is being made regarding the need of the Government to act, on the basis of actions taken elsewhere, I ask those who are supporting this Bill to acknowledge the reality of what is happening in the UK and to explain how this legislation has been implemented elsewhere. If it has been, what are the effects of it? I make these points because this is an issue that the Government and Central Bank are taking seriously, which is why we are not tabling an amendment to oppose Deputy Doherty's Bill. We need to continue to engage on this critical matter. Claims that are being made about the need for us to act on the basis of action that has happened elsewhere need to stand up to scrutiny and to be debated in the House.

We then move on to what we are doing in Ireland, action that has already been taken and actions that are yet to be taken. Claims were made by many Opposition Deputies that nothing is happening. It is worth acknowledging and making the case for what has actually happened. Of the Government's interventions, a brief list would include the Central Bank national claims information database from 2018, the Insurance (Amendment) Act 2018, the Judicial Council Act 2019, Personal Injuries Assessment Board (Amendment) Act 2019, and, working with Deputy Doherty, the Consumer Insurance Contracts Act 2019. Action has been taken and action is to come. All of this is included in steps that have been outlined by the Tánaiste in a ministerial group that he is leading in the Government's action plan on insurance reform. It includes itemised actions that will be taken to deal with the rising premiums and the high premiums that many face, especially small and medium-sized business owners and what it means for their viability and ability to keep their companies going and employ people, which we know about and we acknowledge progress needs to be made on.

That is the reason these actions have been taken and the reason for the Government's action plan for the further steps we are going to take. With regard to the legislation proposed by Deputy Doherty, I also acknowledge the focus he has brought to this issue. I acknowledge the scrutiny he has brought in his analysis of what is, as I have said, a critical issue for many employers. However, we have concerns about this Bill. An acknowledgement of the Deputy's intent and of our commitment to act further does not prevent the Government from expressing concerns about aspects of this Bill and about what it could mean for those who will, in the future, need insurance policies that are more affordable than those now available. We have three concerns. The first is what this Bill would mean for the insurance companies operating in Ireland that offer discounts. That is a serious concern of the Government which needs to be reconciled with the intent behind this Bill, if possible.

Our second concern is what the Bill could mean for new insurance providers and suppliers entering the market or for existing insurance providers when providing new services in sectors of our economy in which they do not currently provide services. This is a legitimate and real concern. I heard Deputy McNamara correctly make the point that there were only two insurance providers for the childcare sector at a particular point. We saw the great difficulties this caused. If we want more suppliers of insurance services in more parts of our economy, it is surely legitimate to make the point that we are concerned that this Bill could affect, or even prevent, that. That is something the Government does not want to see happen.

The final point relates to why we are not opposing the Bill but merely putting forward a timed amendment. This is in acknowledgement of the work the Central Bank is doing and of the value of that work. From a process point of view, this work bears more than some similarity to the kind of work happening elsewhere which has been praised by Opposition Deputies. We believe it is appropriate that this work is concluded. When we have an independent regulator overseeing the sector, a regulator that has produced a report which has been commended by the Opposition, it is appropriate that we allow its process to conclude before the Government takes further action. Many Opposition Members will always create a narrative that the Government, the Minister of State, Deputy Fleming, or I am standing by an elite and by those who, it is claimed, seek to take advantage of those who need insurance. It is not a case of the Government standing with vested interests but a case of the Government recognising that work has already been carried out in respect of dealing with this issue. This work is led by our Central Bank. We should, and will, return to this issue when the Central Bank has concluded the process which it has itself initiated. It is for that reason that, in conjunction with all of the action steps we have taken and all of the policies in place, the effects of some of which were debated today, the Government is committed to making progress on this issue, among many others.

One fact, on which I will conclude and which was not acknowledged in today's debate, is that since the second quarter of 2018, insurance premiums in the motor sector have fallen in every quarter. This shows the difference that competition and the right policies can make in this area. It also reminds me of the need to allow our Central Bank to conclude the work it is doing. It is equally important that we accurately acknowledge what has and has not happened in other jurisdictions.

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