Joe O'Reilly (Fine Gael) | Oireachtas source

I acknowledge the great contribution of Senator Lawlor today but would make the point that nobody is suggesting that people who are injured would not be adequately rewarded. That is not a proposition that anyone here would make. We all have families and friends and none of us is suggesting that we should live in a country like that. People should be adequately compensated for loss of earnings, medical expenses and so on because there are so many dimensions in the aftermath of an accident. That is not at issue. Furthermore, what is also not at issue or being challenged by this legislation is judicial discretion. It is still possible, even if we alter the book of quantum, for individual judges to exercise their discretion. In the context of the separation of powers it is the function of the Houses of the Oireachtas to provide legislative direction. If one were to speak privately to judges in this country, many would say that the quicker these Houses give them direction, the better.

The background to this legislation merits attention. The statistics are extraordinary and have been well rehearsed at this stage. Payouts in this country are four times higher, on average, than in the UK. The average motor claim here is €21,000 compared with €4,000 in Britain, €1,500 in France and €4,500 in Germany. Statistics like that cannot be ignored, including those for third party injury claims costs. As a direct result of the size of the payouts here, the cost of insurance in this country is extraordinary. My son is learning to drive. He will be supervised during the entire process and will be accompanied by a qualified driver at all times. In order to put his name on our insurance policy, our premium will increase from just over €600 to €1,800. That is the cost of including the child, who will be fully supervised, on our policy. Were he not to be supervised, the insurance would be null and void anyway. That is the level we are talking about. My family owns a small retail outlet and the insurance on it costs at least €3,000 per year and it was as high as €6,000 at one stage. That is not sustainable. The costs of insurance generally are just not sustainable.

The need for this legislation and for a debate thereon with a senior Minister is obvious. In terms of jurisprudence, in the Sinnott v. Quinnsworth case in 1984 the Supreme Court found that the Oireachtas had the right to set a limit to the book of quantum or to apply upper limits to awards. While one could argue for exceptions to be made in certain High Court cases, there is no basis for this in the context of minor claims. It is a questionable proposition that we would allow uncontrolled awards. The Bill aims to cap the level of awards. It proposes the alteration of the book of quantum and seeks to prevent excessive claims. What Senator Lawlor wants to do is establish principles and best practice in order to contribute to finding a solution to the problem of astronomical insurance costs that are closing small businesses and putting motorists off the road. There is a famous song called "No Train to Cavan". In my county there are no trains and no buses except those that run along the main arteries so people need cars to get to and from work. Motor insurance, in that sense, is a tax on work.

Senator Lawlor's Bill seeks to regulate the situation with regard to awards. I am sure the Senator would be happy to have his Bill amended to take account of any constitutional issues that may arise, legal advice from the Attorney General or the views of the Minister. The legislation could be amended on Committee Stage. I congratulate Senator Lawlor on this legislation which seeks to provide a solution to a significant problem. The cost of insurance, both commercial and motor, is crazy and the Senator has identified the fact that excessive awards are a contributing factor. He has used evidence from across Europe to demonstrate that payouts here are excessive. His Bill proposes a solution to this and, at a minimum, the major elements of this solution should become law.