Séamus McGrath (Cork South-Central, Fianna Fail)
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1268. To ask the Tánaiste and Minister for Justice and Equality to provide an update on the review of PPO legislation; and the timeframe for same. [58165/25]

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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As the Deputy will be aware, Periodic Payment Orders (PPOs) are an alternative to lump sum awards as a method of paying compensation to catastrophically injured people. Instead of receiving compensation in one tranche a payment is made annually on an agreed date. The annual payment amount is calculated to meet the cost of permanent and long-term care and treatment. An indexation rate is applied to the annual payment amount to ensure that the amount keeps pace with inflation.

A Working Group on the Indexation rate for Periodic Payment Orders, to advise on an appropriate index, was established following a High Court determination that the index used in primary legislation was unworkable. As part of a two-stage process, the primary legislation governing PPOs has been amended to allow for the Minister for Justice, Home Affairs and Migration to set the rate by way of secondary legislation.

The recommendations of the Working Group that the Periodic Payment Index should comprise a combination of harmonised index of consumer prices (HICP) and Annual Rate of Change (ARC) in nominal hourly health earnings for the health sector were subsequently approved. Drafting of the necessary regulations is at an advanced stage and I hope to be able to bring the regulations into operation shortly.