Ahern and Harney challenged on insurance rip-off

The Taoiseach and the Tánaiste have been challenged in the Dáil by Caoimhghín Ó Caoláin over their failure to tackle the huge cost of insurance. The Cavan/Monaghan Sinn Féin TD pointed out that Tánaiste Mary Harney had said she was willing to be "benchmarked" on this issue and that it was her number one political priority but the government has failed to control escalating insurance premiums.

Questioning the Taoiseach on Wednesday, Ó Caoláin pointed out that when the Dáil resumed in September the, government chose as its flagship bill the Personal Injuries Assessment Board Bill, which is designed to bring down insurance costs. He said:

"Last February, when I raised the issue of the disastrous cost of insurance cover and its very damaging effect on economic and social life, Minister of State Brian Lenihan replied on behalf of the Tánaiste Mary Harney. He said the Tánaiste regarded insurance reform as her number one political priority. Minister of State Willie O'Dea has said that the proposed Personal Injuries Assessment Board would have no impact on insurance costs. The Departments of Justice and Finance are reportedly also opposed to the Bill. Is this legislation — which is so dear to the Tánaiste's heart — now a dead duck, Taoiseach?

"While the Cabinet squabbles what protection will be given to the people who are being fleeced by outrageous insurance costs which are damaging our economy? Is the Taoiseach aware that jobs are being lost because of the insurance rip-off? As an avid follower of sport is the Taoiseach aware of the very damaging effect of exorbitant insurance on sports clubs, local community groups and voluntary bodies who are prevented from organising many activities and events because of the astronomical cost of public liability insurance cover? In my own constituency a senior citizens' group in Cootehill in County Cavan is being forced to provide its own insurance cover to access a day-care centre operated by the health board. Is that not also a scandal? Will the Taoiseach take on the insurance companies and introduce price controls on insurance premiums?"

Ahern claimed there was no disagreement in Cabinet on the issue and that legislation would be published next week. He said there was evidence insurance costs were decreasing. Ó Caoláin disagreed: The Taoiseach, he said, "states that the EU precludes the imposition of price controls on insurance. But what has the government done at EU level to have that law amended to protect consumers from gross exploitation and to prevent the distortion of the economy by this huge problem?

"What does the Taoiseach say to young drivers in areas where public transport is non-existent and who cannot afford to insure their vehicles to go to their work? What does he say to small enterprises being put out of business? What does he say to clubs and community groups who cannot operate?"