Mary Butler (Waterford, Fianna Fail)
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146. To ask the Minister for Finance when the recommendations of a working group (details supplied) will be complete; the agreed timelimes; if they will be delivered within those timelines; and if he will make a statement on the matter. [6950/17]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept.  This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. 

However, I do accept that it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the cost of insurance.  Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair.  The Report on the Cost of Motor Insurance was finalised in December 2016, approved by Cabinet on 10 January 2017, and subsequently published. It contains 33 recommendations and 71 actions which are detailed in an action plan contained in the Report with agreed timelines for implementation.  Work on carrying out these recommendations is underway and I am confident that the report's 71 action points will be implemented by the end of 2018, with 45 due for completion this year.  The Working Group continues to meet regularly and will report on a quarterly basis detailing its progress.

With regard to the taxi sector in particular, I am aware that it made representations to my Department and the Cost of Insurance Working Group and these were taken into consideration during the review.  The position of the taxi sector, which serves a social as well as an economic purpose, particularly in rural areas where public transport is less readily available, was acknowledged by the inclusion in the Report of a recommendation for the Advisory Committee on Small Public Vehicles (commonly referred to as the Taxi Advisory Committee (TAC)) to enter regular discussions with Insurance Ireland in order to explore solutions for drivers in the sector.  In this respect, the Department of Transport, Tourism and Sport has informed my department that it has been working with the TAC towards implementing the relevant action points within the required timelines, i.e., for the TAC to meet with Insurance Ireland in Q1 2017 (Action Point No. 20), and for the TAC to report to the Minister for Transport, Tourism and Sport in Q2 2017 (Action Point No. 21).

Finally, the issues raised by the taxi sector were in the main similar to those affecting consumers generally.  While there is no silver bullet to reduce the cost of insurance, cooperation and commitment between all parties can deliver fairer premiums for consumers, including taxi drivers, without unnecessary delay.  This will lead to greater stability in the pricing of motor insurance and will help prevent the volatility that we have seen in the market in the past.  It should also better facilitate potential new entrants to the market.  Taken together, these would address many of the issues raised by the taxi sector.