Linda Nelson Murray (Fine Gael)

I thank the Minister of State for coming in. I am here to ask about the SME test being applied to the legislation on the personal injury guidelines, as there is a recommendation that they be increased. The SME test was introduced by the Government as a part of measures in May 2024. This is a no-brainer because any major new measure from the Government will be assessed for its impact on small business through an enhanced SME test. In all cases, a completed SME test must be included or an explanation provided as to why it is considered an SME test is not required.

The SME test is all about "think small first" and considers how measures will impact businesses. Some enterprises can be disproportionately impacted by regulatory or administrative burdens if not given due consideration during the formation of policy. Ireland's SME test is a four-step process for policymakers to consider: consultation, identification, impact and mitigation. If ever this test were needed, it is now, when the personal injury guidelines look likely to come before us for an increase of 16.7%. On 5 March 2024, the personal injuries guidelines committee of the Judicial Council submitted the outcome of its review of the personal injury guidelines to the board of the Judicial Council, pursuant to section 18(2)(b) of the Judicial Council Act 2019. This means businesses, community groups, sports clubs, motorists and charities will all pay the price as this increase will be passed on to policyholders.

I have brought this issue up many times here in the Upper House. My colleagues and I brought a motion to this House only two weeks ago on insurance whereby all of us stated the increase in the personal injury guidelines was excessive. We cannot allow this to go ahead without performing the SME test. We have brought in the SME test for businesses to allow us to consider impacts on them when policy and legislation is before us. When the personal injury guidelines go ahead, all our premiums will increase and, in particular, those of business, the backbone of our economy, so we keep getting told. The recommendations from the Judicial Council state:

The Committee has not found it possible to carry out any meaningful analysis of the quantum of court awards given under the Guidelines to date that might inform this review. This is because the inevitable delay between the commencement of proceedings to which the then new Guidelines applied and their trial has meant that there are very few decisions and certainly not enough to be statistically significant.

How can we apply these guidelines when we have not even properly analysed the data? The committee just recommended an increase of 16.7% instead. The Judicial Council Act 2019 made clear that rigorous analysis should take place, including consulting with the Personal Injuries Assessment Board. No such consultation took place despite the thousands of cases the board has processed since the guidelines were introduced in 2021.

Without the increase, a minor back injury in Ireland sees people get between €12,000 and €20,000. In England, it is a maximum of £8,300. A minor shoulder soft tissue injury in Ireland has a maximum of up to €12,000, while in England it is £5,200. A minor ankle sprain injury in Ireland has a maximum of €12,000, but it is £6,300 in England. In Ireland, a minor foot fracture has a maximum amount of €20,000, while it is £12,700 in England. These are the numbers before we apply the 16.7% increase. I call on the Minister for enterprise to enact the SME test on the personal injury guidelines before any decision is made to implement them.