Young drivers, especially males, are forced to pay exorbitant prices for motor insurance. A significant number are forced into purchasing private cars in the first place due to inadequate public transport provision. The cost of motor insurance is a huge financial burden for many young people and their families. The most recent statistics available on this issue are contained in the Financial Regulator's report, Private Motor Insurance Statistics 2005. It showed that young male drivers between the ages of 17 and 20 holding provisional licences can pay up to €4,291 every year to be insured. Simultaneously, young female drivers in the same position can pay up to €2,381. The case has worsened in recent years. In 2002, a survey carried out of young male drivers aged 17 to 20 with provisional licences showed that the cheapest quote possible was €1,622. Three years later, in 2005, the cheapest quote possible was €2,082. This constitutes an increase of €420. The position has worsened and there has been little action to tackle it.

The National Youth Council of Ireland's report on motor insurance, entitled The Plunder Years, found that many young drivers are forced to pay insurance premiums by instalment as a result of high insurance costs. This form of payment incurs an interest charge of more than 18%, further hiking up the price. Motor insurance costs in this State are almost double the EU average. In addition there is inadequate regulation, information and research into the insurance industry.

What is the Minister of State's opinion on Sinn Féin's proposal to set up a State motor insurance scheme? A model exists in Canada, namely, the Manitoba Public Insurance Corporation in the province of Manitoba. This insurance company does not discriminate on age or sex. The only factors taken into account are the car one drives, what one uses it for, where one lives, one's driving record and the cover one wants. Quotes are much the same for everyone. New Zealand also runs such a scheme. These companies have proven their viability and contribute to better road safety through involvement in every aspect of road awareness projects.

It is unacceptable that young drivers are being discriminated against in respect of car insurance, thereby forcing some to become uninsured and an even bigger threat to other road users. Although young motorists are charged premiums that are not remotely reflective of the costs of actually insuring them, little has been done by the Government except to allow their continued exploitation. There is an obvious need for action. One such action could be the establishment of a State motor insurance company that would sell insurance at a fair price, rather than being set by market forces.

The National Youth Council of Ireland also suggested that drivers with an accident-free record should be entitled to a rebate funded by a levy on the profits of insurance companies. Through a State-run system, any profits accumulated could be used to offset the cost of providing insurance and to reduce premiums. Sinn Féin believes that affordable motor insurance should be available to every resident in the State, regardless of age, sex or marital status.