Frances Fitzgerald (Fine Gael)

I move amendment No. 2:

In page 7, to delete lines 12 to 15.

It is strange that amendment No. 1 was not allowed because it was deemed to be in conflict with the principle of the Bill. There was much discussion about that issue on Second Stage and I thought it would be allowed.

Section 6 prevents any sale or promotion for any period shorter than 31 days. I imagine that the thinking behind this is the need to protect consumers, but we in Fine Gael worry that this provision stifles competition and only serves to benefit the insurer with the deepest pockets, which can sustain a sale for this amount of time. It could be said this constitutes interference in normal commercial practice. I do not think this provision applies in any other financial services market in Ireland and I would like the Minister to explain why this period of 31 days is specified and what is the justification for it.

It could be argued that the section stifles competition. I can certainly see the intention, but does it not constitute interference in normal commercial practice? Why is it necessary in this area when we do not protect people in other financial markets?