FF calls for taskforce on cost of motor insurance

Fianna Fáil

finance spokesman Michael McGrath has told the Government it will have to act on his party’s Private

Members’ motion calling for the setting up of taskforce on the cost of motor insurance.

Mr McGrath welcomed the Government’s decision not to oppose the motion in today’s vote but said it was more important that it act on the issue.

“It is not acceptable for the Government to not call a vote on a motion and then ignore its contents,’’ he said, adding that if the Government supported the motion, it would have to implement it.

Mr McGrath said that since 2014 the cost of motor insurance premiums had gone up by 60 per cent with a rise of one third in the “past 12 months alone”.

He said the increases were having a particularly hard effect on younger and older drivers but that “nobody is immune from the effects of it”.

Mr McGrath said the proposed taskforce would operate along the lines of the motor insurance advisory board which operated very successfully for a number of years.

Minister for Finance Michael Noonan said many Government departments and agencies were directly involved with the motor insurance sector.

Mr Noonan said “a whole of Government approach” was being taken to ensure the cost of motor insurance was addressed.

Burden

This was being led by the Department of Finance’s taskforce and the Government would await the completion of its work which involved examining the factors contributing to the increasing costs and identifying what short-term measures could be introduced to reduce the burden on consumers and businesses.

“The Government will then consider what further long-term options may be required, including the possible establishment of a broader, structured taskforce on insurance as outlined in the motion before the House this evening,” Mr Noonan added.

The Minister said it was important Ireland had an insurance sector that was not only financially stable but contributed to economic activity.

He said the Fianna Fáil motion provided the Dáil with a valuable opportunity to discuss the important matter of insurance costs and to highlight the actions the Government was taking to address the issues and to reach a shared understanding on the way forward.