Labhrás Ó Murchú (Fianna Fail)

The Tánaiste's contribution on the issue of insurance legislation was like a breath of fresh air. Most people, including everyone in this Chamber, realise we have a serious problem. It is like a blight on innovation, industry and community activity. What struck me about the Tánaiste's contribution and her awareness of what is happening in the legislative area is how comprehensive and multi-pronged is the Government approach. There was no other way of doing this because any cosmetic effort would not be welcomed by the general public. There had to be a root and branch approach to this problem as it stood. I always felt particularly aggrieved in the post 11 September 2001 era by how the insurance industry seized on that terrible tragedy to ensure that its particular base would not only prosper, but improve. A voluntary, community organisation with which I am connected, which prior to 11 September 2001 was paying a public liability policy of £50,000, is now paying €130,000. This is only one example; everybody in this House can give examples.

I know of many cases where the directors of small industries decided to break up their staff structures and do independent work because they could not possibly afford the premiums that were being charged. In the past these small or cottage industries, employing up to ten people, were safe areas of employment. One seldom saw small industries or businesses going to the wall. The big conglomerates always suffered from world developments and world markets, but now, in every area of the country, small industries are threatened. In the past, they were prepared to absorb certain financial difficulties which came their way. However, the level of increases in premiums they have to bear means that is no longer possible. That is why I am glad the legislative proposals are very comprehensive.

We have all received submissions from the legal profession. Some 14 different firms of solicitors have already written to me. I welcome the submissions – I see nothing wrong with it. I am not one of those people who indulges in bashing a particular profession because I believe that some other agenda is present when people head down that road. By and large, I hold the legal profession in the highest regard and it is right to put its case. As far as I am concerned, this is beyond any particular sectoral interest.

The insurance companies who were prepared to honour claims in the past on the basis of paying out nuisance money, rather than entering a large claims situation, contributed in many ways to the type of climate that now exists. I remember listening some time ago to Gay Byrne's radio show which, if I recall correctly, broadcast the name of a person who had taken 11 different cases against Dublin Corporation in two and a half years. In each case, £1,500 or £2,000 nuisance money was paid out. This is fine if it only involves one person but if one multiplies that by thousands throughout the country, it is bound to have a degenerative effect on the whole insurance climate.