Eamon Scanlon (Fianna Fail)

I welcome the Tánaiste to the House and congratulate her, her colleagues and officials in the Department of Enterprise, Trade and Employment on the excellent work that has gone into producing this Bill.

A great deal of thought and effort has been put into the Bill and I welcome its provisions. As Senator Leyden pointed out, significant benefits will come from this Bill which will have far-reaching implications for everyone. It is, without doubt, one of the most important and significant pieces of legislation to come before the 22nd Seanad so far, despite the many forces working against its implementation.

To say that the issues dealt with in the Bill are complex is an understatement. The Tánaiste and the officials in her Department who were involved in putting this Bill together deserve huge credit for producing such a fine document in a relatively short time. Given the issues and structures involved, it would not have been a surprise if the Bill had taken a great deal longer to finalise. It is yet another example of the effectiveness of the Government and the commitment of the Tánaiste to delivering on their promises. That is exactly what the Bill will do.

Through the establishment of the Personal Injuries Assessment Board, the Government has taken a huge step in dealing with the problem of rising insurance costs which are a problem for businesses all over the country as they strive to keep costs low and maintain their competitiveness. Rising costs are a problem for drivers who face having to pay astronomical premiums to simply get on the road. The problem affects every person in the country and that is why the solution offered by this Bill is so important.

Once the assessment board is in place, we can expect to alter the current situation dramatically. By assessing claims of compensation in an efficient and consistent manner, the board will significantly reduce their cost. Once the price of claims starts to drop, the price of insurance should follow suit. After all, we have been told by the insurance companies for years that it was the cost of litigation that was driving up premiums. It was costing the insurance companies more and more to compensate claimants, due to the legal costs involved. We have now addressed that problem. Legal costs should no longer add on in excess of 40% to the cost of compensation. Through the streamlining of the compensation process contained in the Bill, we should effectively see the insurance companies save most of that 40%. Therefore, it would not be unreasonable to expect premiums to be reduced by the best part of 40% .

The Personal Injuries Assessment Board allows for the shortening of the whole compensation process. It is estimated that it takes six times as long to begin negotiations on claims in this country as it does in Britain. That is a disgraceful statistic but, hopefully, the establishment of the board will end that problem.