Liam Twomey (Wexford, Fine Gael)
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Question 26: To ask the Minister for Enterprise, Trade and Employment the steps he will take to lower costs for businesses, which include insurance costs that are 20% higher than those in the UK; and if he will make a statement on the matter. [11349/06]

Micheál Martin (Cork South Central, Fianna Fail)
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Sustaining Ireland's competitiveness continues to be a key priority for this Government. It is monitored in particular through the work and advice of the National Competitiveness Council. The Government's response is manifested in numerous ways, most recently as evidenced by the introduction of a non-inflationary budget for the third consecutive year. This displays the Government's prudent fiscal management of the economy at a time of ever increasing global competitiveness pressures.

Competition is the best way to ensure we have a competitive cost base. In my own Department I have assigned more resources and given more powers to the Competition Authority. I have abolished the groceries order and strengthened competition legislation to deliver more competition and help create a more cost effective base for doing business from Ireland.

In its annual report for 2005, the NCC found that the rate of growth in the cost of insurance has slowed down substantially in recent years. This can be attributed to the series of initiatives the Government has pushed through to reform the insurance sector. The action taken by Government to ensure reform and healthy competition in the insurance sector had already seen benefits for consumers. The cost of motor insurance, for example, continues to decline and in the 12 months to February 2006 declined by 8.6%, while the Personal Injuries Assessment Board continues to deliver fair compensation at costs that are significantly lower than under the old litigation system. At the end of December 2005, the PIAB estimates that its process has saved litigants over €4.3 million compared to comparable settlement costs under the old system.