Terry Leyden (Fianna Fail)

It applies to us all. The Fianna Fáil parliamentary party supports the Bill unanimously. While the party includes quite a number of lawyers who have certain concerns about the legislation, they feel its provisions are necessary for the consumer and the overall good of the community. The original legislation, which was enacted when the Minister for Health and Children, Deputy Harney, was the Minister for Enterprise, Trade and Employment, represented a significant and revolutionary innovation. When Fianna Fáil entered Government five years ago, insurance was the single most significant issue affecting trade and Irish business. The cost of insurance has dropped by approximately 50% in the interim, which is amazing. That we have tackled car and personal injuries insurance costs has changed a significant facet of business in Ireland. The PIAB has been responsible in the main for the changes which have come about. It was a significant innovation for the Government to establish another semi-State organisation at a time when we were starting to reduce their number.

The PIAB, which was framed in 2004, has been very successful in achieving its aims. It has reduced the cost of claims for the consumer. Under the courts system, legal fees represented approximately 46% of claims, whereas current processing costs represent only 7% of awards to claimants. Claims used to take an average of three years to process, but this has now been reduced to 7.43 months, which is a major change. The PIAB has now reached full-flow activity and expects to deliver compensation payments in excess of €100 million annually from 2008. Clearly, the PIAB has been a great success from the points of view of consumers and the courts which no longer have to process the costly and time-consuming cases which are now resolved by the board.

However, a trend has a emerged which was not envisaged in the original Act and a way around the system was devised. Some solicitors will reject an offer made by the PIAB but agree to a similar one afterwards and then charge fees. The Government has therefore had to bring forward the amending legislation.

I understand, and the Minister may be able to confirm, that he consulted the Attorney General who advised that the Bill is constitutional. Circumstances have emerged which require to be remedied. The Bill provides a better deal for consumers by closing a loophole the original Act did not anticipate. If an amendment to address the issue which has arisen makes the working of the PIAB more successful, the Minister is to be commended on making it with the advice of his senior officials and the Attorney General.

I put on record our admiration for Ms Dorothea Dowling, the non-executive chairman, and our colleague, Senator O'Toole, the vice-chairman of the PIAB, who have brought great expertise to this area, as well as for Ms Patricia Byron and her team who have been extremely successful. In the words of a former Taoiseach, they have done the State some service. We commend their work and their running of the organisation.