Paul Gogarty (Dublin Mid West, Green Party)
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Question 20: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her Department analysed the system of motor insurance in New Zealand where a special insurance levy is added to the price of petrol to fund a common motor insurance scheme; if she will consider developing such an approach here because persons who drive the most would have to pay proportionately more for their insurance and this would lead to administrative savings. [18133/04]

Mary Harney (Dublin Mid West, Progressive Democrats)
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During 2001 the system was analysed by the special working group on personal injury compensation. In December 1996 the then Minister for Commerce, Science and Technology established the group following the Government's consideration of a Deloitte & Touche report on an economic evaluation of insurance costs here. The group's remit included the investigation and examination of issues surrounding other alternative or complementary systems for delivering personal injury compensation here.

In New Zealand the no-fault compensation system and rehabilitation scheme for motor related personal injury is funded by motor registration charges and taxes on motor fuel. It is operated on a pay as you go basis with no provision for the cost of future liabilities. The working group could not recommend the system due to uncertainties about its funding and operation. The working group felt constitutionally constrained from recommending the replacement of the existing systems of personal injury compensation here with a system that would impose restrictions on the existing right of tort action for personal injury compensation.

Cooney Carey Business Consultancy produced a report for my Department in December 1993. It examined the feasibility of replacing the current system of third party liability insurance with a levy on motor fuels. It concluded that the levy based system would penalise all sectors in industry. It also concluded that our competitiveness throughout Europe would be seriously affected and have a negative impact on growth, job creation and the economy.

Ultimately the issue of placing an insurance levy on the price of petrol rests with the Minister for Finance.