Minister to wait for full motor insurance report

The report of the Motor Insurance Advisory Board would be available towards the end of the year, the Dail was told.

The Minister of State for Enterprise, Trade and Employment, Mr Noel Treacy, said the Government would take full account of the board's final recommendations and refer them, as appropriate, to the financial services regulatory authority.

He was replying, on the adjournment, to Mr Pat Rabbitte (Labour, Dublin South West), who said tens of thousands of young people, who in most cases needed a car to get to work, were expected to bear burdensome and crushing insurance costs because the testimony of the industry that it was an unprofitable enterprise was relied on by the Minister.

During heated exchanges, Mr Treacy said until the board was in a position to confirm that the insurance industry would be supplying up-to-date data, he had extended its mandate until the end of this year.

"It is vital that any consideration by this Government of issues arising from the levels of motor insurance premiums should be on an accurate and well-informed basis."

Mr Treacy said the board had submitted its interim report to the Department last June. The board was conscious that the data, on which it had based its interim report, was incomplete and that the findings were, therefore, tentative.

"Thus, the interim report clearly stated that the board required access to the individual raw data before any firm conclusions could be reached. Further, it became clear in October last that there were serious deficiencies in the raw data.

"The board took the view that the flawed information compromised the already tentative conclusions of its report and brought this fact to my immediate attention."

Earlier, the Taoiseach said the Government shared the concern about the cost of motor insurance for young drivers.

Mr Ahern was responding to the Fine Gael leader, Mr Michael Noonan, who said that since last July there had been a report in the Tanaiste's Department confirming that insuring those under 18 was a loss-making activity, while insuring people between 18 and 25 years was actually profitable.

"To put it bluntly, rather than feeling the pain of the 25-yearolds, will the Taoiseach tell us what he is going to do about it?"

Mr Ahern said the figures were in dispute.