Michael McDowell (Dublin South East, Progressive Democrats)

I warmly welcome the opportunity to commence the Second Stage debate on this Bill in the Seanad and to listen to Senators' views on its provisions.

First, this is a wide-ranging and innovative Bill which seeks to address a number of serious issues concerning civil liability. Chief among these is the tackling of what has become known as the "compensation culture" by introducing new penalties for fraudulent and exaggerated claims. The Bill also provides for major procedural changes in personal injury actions to reduce the time taken and the costs involved in processing such actions. In addition, the Bill amends the in camera rule, provides for the disposal of part of the funds of suitors vested in the accountant of the courts of justice and makes provision for the jurisdiction of the Circuit Court in proceedings relating to land. The primary purpose of the Bill is to implement certain commitments in An Agreed Programme for Government, including relevant recommendations of the Motor Insurance Advisory Board and to change the law on civil liability in some other respects.

The civil liability elements of this Bill, together with the Personal Injuries Assessment Board Act 2003, which was sponsored by my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Harney, and the measures being taken by the Minister for Transport, Deputy Brennan, are the Government's legislative response to the problem of the compensation culture. This Bill, when enacted and in force, will result in an easing of the insurance burden on the personal and business sectors and of the cost to public authorities of personal injury actions, without compromising the right of those genuinely injured to be compensated for their loss. The Bill contains provisions which will deter those who take legal actions for compensation on a fraudulent or exaggerated basis. Much information has come to light attesting to the willingness of many unscrupulous individuals to embark on this course of action to enrich themselves at the expense of the wider community.

In addition, the Bill aims to streamline the procedure in personal injuries actions so as to reduce litigation costs. These costs are quite simply too high relative to the quantum of compensation. A survey of litigation costs, undertaken by the Motor Insurance Advisory Board and described in that body's report, shows that in 2000 such costs amounted to 40% of compensation awarded in motor accident cases, 46% in employers' liability and 56% in public liability cases. Furthermore, the trend was that these proportions were increasing over the years. This does not suggest that we have an efficient system for delivering compensation to those who are injured. The Personal Injuries Assessment Board is intended to address this problem in cases where liability is not in issue. The measures in this Bill are aimed at all other cases, namely where legal action is instituted in the courts.

I have listened carefully to the comments made by interested parties following the publication of this Bill and I am gratified that the overwhelming response has been positive which may not save me from a Second Stage vote.