Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 140: To ask the Minister for Justice and Equality the timescale for introducing legislation based on the report of the medical negligence working group which recommended the introduction of a periodic payment order scheme as an alternative to the current lump sum system of paying compensation in catastrophic injury cases; and if he will make a statement on the matter. [29036/11]

Alan Shatter (Dublin South, Fine Gael)
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The Programme for Government includes a commitment to introduce legislation to facilitate courts making provision for structured settlements in circumstances where lump sums are currently awarded as a consequence of individuals suffering catastrophic injury because of the negligence of another.

Among the recommendations made in the Report of the High Court Working Group on Medical Negligence were that:

legislation be enacted to empower the courts, as an alternative to lump sum awards, to make consensual and non-consensual periodic payments to compensate injured victims in cases of catastrophic injury where long term permanent care will be required, for the costs of (a) future treatment, (b) future care and (c) the future provision of medical and assistive aids and appliances,

periodic payment orders should only be made in circumstances where the court is satisfied that continuity of payment under the periodic payments order is reasonably secure, and

the State, through the agency of the NTMA, be empowered to provide injured victims with the necessary security for periodic payments either by the provision of annuities to insurers and others or in such other manner as may be appropriate. Alternatively consideration should be given to the introduction of a statutory scheme whereby payments made under periodic payment orders will be statutorily protected and fully guaranteed.

Critical therefore to the successful operation of a statutory scheme for periodic payments will be the establishment of the necessary financial infrastructure to ensure continuity of payment is secure. In this regard the National Treasury Management Agency is conducting an actuarial review to examine the feasibility and cost-effectiveness of periodic payment orders as an alternative to lump sum payments, or other options. The review will examine in particular the feasibility of the State acting as an annuity provider to insurers and indemnity providers in personal injury actions to enable compliance with the continuity and security of payments principle. The outcome of the review which I understand is expected to take six months to complete will inform the development of proposals underway in my Department to meet the Government's commitment to legislate in this area.